[Asia Economy Reporter Park Hyungsoo] VUNO, a medical artificial intelligence (AI) solution company, is showing strong performance. The AI-based cardiac arrest prediction medical device 'VUNO Med-DeepCARS,' which entered the non-reimbursed market for the first time in the industry last year, appears to be driving improved earnings, influencing the stock price.
As of 9:56 a.m. on the 28th, VUNO is trading at 15,800 KRW, up 10.26% from the previous day.
VUNO recorded sales of 8.274 billion KRW last year, a 268.1% increase compared to the previous year. Operating losses were 15.3 billion KRW, reducing the deficit compared to the previous year.
In the fourth quarter alone last year, VUNO achieved about 6.3 billion KRW in sales, accounting for 76% of total sales, marking the highest single-quarter sales in the medical AI industry. This represents more than a fivefold increase compared to 1.2 billion KRW in the same period the previous year.
In August last year, VUNO's AI-based cardiac arrest prediction medical device, VUNO Med-DeepCARS, became the first in the industry to enter the non-reimbursed market. Since then, sales have rapidly increased. VUNO Med-DeepCARS is being utilized in more than 10 medical institutions nationwide, including Dankook University Hospital, Kyung Hee University Hospital, and Chosun University Hospital, with expansion of application institutions ongoing.
A VUNO official stated, "The sales of existing imaging interpretation products and technology transfers also contributed to the sales increase," adding, "We will continue various efforts to improve the quality of AI solutions and expand entry into the non-reimbursed market, resolving the risk of revenue generation, which has been a chronic issue in the medical AI industry."
Kiwoom Securities researcher Heo Hyemin said, "The most promising field is the biosignal solution (DeepCARS)," and analyzed, "It is planned to expand to about 40 hospitals this year, which will account for the largest portion of total sales this year." He added, "There is a new market worth about 200 billion KRW domestically targeting general wards of general hospitals," emphasizing, "Market expansion to intensive care units is also possible in the future." He expected, "Sales this year could grow about 2 to 3 times in proportion to the growth rate of DeepCARS," and analyzed, "A revenue-generating structure that can break the deficit cycle has been formed."
Researcher Heo also explained, "When hospitals using the AI medical device take X-rays or CT scans, sales occur per case," adding, "The more hospitals use it, the more sales increase." He further said, "Sales are generated through integration with medical imaging equipment (such as Samsung Electronics)," and predicted, "Additional contracts with equipment manufacturers are expected to expand scale this year."
In 2021, VUNO signed a contract to have its AI-based chest X-ray image interpretation solution, VUNO Med-Chest X-ray, pre-installed on Samsung Electronics' premium ceiling-mounted digital X-ray equipment ‘GC85A.’ VUNO Med-Chest X-ray is sold in conjunction with software from X-ray detector companies such as Rayence, Vieworks, LG Electronics, and X-ray system companies like Samsung Electronics, based on the advantage of model lightweighting through AI algorithm computation optimization. It has obtained European CE certification and Taiwan FDA approval, targeting overseas digital X-ray markets through collaboration with X-ray companies. VUNO’s founder confirmed the potential of deep learning technology while researching AI at Samsung Electronics’ Advanced Institute of Technology.
VUNO will participate in the '2023 European Congress of Radiology (ECR 2023)' held in Vienna, Austria, from the 1st to the 5th of next month. VUNO will exhibit VUNO Med solutions in the radiology field, which have obtained European CE certification, and introduce product utilization cases from clinical sites both domestically and internationally.
ECR is the largest medical conference in Europe with participation from radiologists and medical device company representatives worldwide, and is the second-largest event in the radiology field globally.
At the event, VUNO will showcase four VUNO Med solutions in radiology that have obtained European CE certification through booth exhibitions. The exhibited products include ▲VUNO Med Chest CT AI™ ▲VUNO Med DeepBrain® ▲VUNO Med Chest X-ray™ ▲VUNO Med BoneAge™. Each product is a medical device that analyzes medical images such as X-rays, CT, and MRI based on AI to assist medical professionals in diagnosis.
VUNO CEO Lee Yeha said, "We plan to conduct as many face-to-face meetings as possible with potential customers to enhance overseas business performance," adding, "Having laid the foundation for expanding overseas market channels through European CE certification of key products and obtaining medical device approvals worldwide, we will do our best to achieve concrete results."
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