Lunit Achieves Record High with 11.6 Billion KRW in Sales, Growing 116% Last Year

Synergy from Volpara Acquisition...
Strengthening Profitability Centered on the North American Market

Summary of Lunit's Performance Last Year. Data provided by Lunit

Medical artificial intelligence (AI) company Lunit announced on the 11th that it achieved annual sales of 54.2 billion KRW based on consolidated financial statements last year. This represents a 116% increase compared to 25.1 billion KRW the previous year. Sales in the fourth quarter of last year reached 20 billion KRW, up 19.5% from the previous quarter and 271.3% compared to the same period last year.

Overseas sales last year amounted to 47.8 billion KRW, accounting for 88% of total sales, marking a 124% increase from 21.3 billion KRW the previous year. The acquisition of Volpara Health (Volpara), a subsidiary, enabled entry into the North American market, and collaboration with big pharmaceutical companies on Lunit Scope, a flagship product in cancer treatment, drove high growth. Although operating losses increased to 67.7 billion KRW last year compared to the previous year, the loss ratio relative to sales improved from 1.7 times to 1.25 times.

Synergy from Volpara Acquisition... Strengthening Profitability Centered on the North American Market

In May last year, Lunit completed the acquisition of Volpara, which supplies software to over 2,000 breast screening institutions in the United States, marking a new turning point for its global business. This accelerated entry into the North American breast cancer screening market and expanded global sales of AI-based cancer screening solutions.

Lunit is promoting cross-selling of Lunit AI solutions to Volpara’s existing customers in the North American market, while in other global markets, it is increasing profitability by selling Volpara solutions through Lunit’s sales network.

In particular, Volpara’s performance is expected to be reflected in Lunit’s total annual results this year, playing a key role in future sales growth.

Expanding Big Pharma Collaboration through AI Biomarker 'Lunit Scope'

Last year, Lunit discovered new growth drivers by leading various practical collaborations with global pharmaceutical companies using its AI biomarker platform, 'Lunit Scope.'

Notably, at the end of last year, Lunit signed a contract with AstraZeneca to develop an AI-based digital pathology solution for non-small cell lung cancer. This was the first contract directly signed with a global big pharma headquarters, and the two companies are jointly developing an AI solution to predict EGFR mutations in lung cancer using the Lunit SCOPE Genotype Predictor.

Additionally, through an agreement to integrate Lunit Scope into Roche Diagnostics’ digital pathology platform, Lunit provides global clients with accurate and consistent evaluation analyses of biomarker expression levels and critical clinical information necessary for anticancer drug development.

60% Increase in Institutions Adopting Lunit Insight... Expanding Sales Power

As of the end of last year, medical institutions that have adopted the chest X-ray image analysis solution 'Lunit Insight CXR' and the mammography image analysis solution 'Lunit Insight MMG' exceeded 4,800 across 55 countries worldwide, a 60% increase compared to the previous year. Lunit is expanding solution adoption not only in major medical institutions across the United States, Europe, the Middle East, and Asia but also among national public healthcare authorities, thereby strengthening its market dominance.

The domestic market also grew significantly. Domestic sales last year reached 6.4 billion KRW, a 69% increase from the previous year. Lunit Insight CXR became eligible for non-reimbursed medical services from the first quarter, and Lunit Insight MMG began non-reimbursed billing from the fourth quarter, greatly expanding adoption by domestic medical institutions.

Seobum Seok, CEO of Lunit, said, "Last year, through the acquisition of Volpara, we presented a new paradigm in the AI-based cancer screening market and strengthened collaboration with global pharmaceutical companies using Lunit Scope, achieving record results. This year, as the synergy from the Volpara acquisition is maximized and additional collaborations with multiple global pharmaceutical companies are expected, we will continue our growth trajectory."