[Click eStock] "JLK, Expected Expansion of Domestic and International Medical AI Solution Sales"

Sangsangin Securities analyzed on the 13th that "as JLK (Jeilke) actively enters the US and Japanese markets, meaningful overseas sales can be expected from the second half of this year."

On the same day, researcher Ha Taegi of Sangsangin Securities stated, "If meaningful sales become visible, it will have a significant impact on the company's value."

JLK is a medical artificial intelligence (AI) solution specialist company. Its goal is to analyze medical imaging and clinical data with AI to perform early disease diagnosis, reading assistance, lesion detection, and prognosis prediction. Researcher Ha explained, "We have a total of 12 stroke AI solutions (MEDIHUB STROKE), including 6 types of CT and 6 types of MRI."

Domestically, at the end of October 2023, the Ministry of Health and Welfare's Health Insurance Policy Deliberation Committee decided to apply health insurance (non-reimbursed) for JBS-01K (JLK-DWI), a stroke solution assisting in cerebral infarction diagnosis, as the first (No. 1) innovative medical technology in the AI field in Korea. Currently, the solution has been installed in 210 hospitals (40 university hospitals, 126 general hospitals, and 44 regular hospitals).

Overseas expansion is a particularly noteworthy factor. First, the company is actively promoting entry into the US market. Researcher Ha said, "The CT-based JLK-LVO (large vessel occlusion detection), JLK-CTP (decision for vascular recanalization procedure), and MRI-based JLK-PWI (decision for vascular recanalization procedure) received approval from the US Food and Drug Administration (FDA) last year, and in January, the CT-based JLK-ICH and the medical AI hub platform were also approved."

Entry into the Japanese market is also underway. Researcher Ha stated, "In September last year, we applied for approval from the Japanese Ministry of Health, Labour and Welfare for JLK-CPT (brain CT perfusion image analysis) and JLK-PWI (brain MR perfusion image analysis), and in the fourth quarter of this year, we received approval for JLK-CTP and JLK-PWI. We plan to sign a contract with a major Japanese distributor in the second to third quarter and start sales from the third quarter."

Last year, on a consolidated basis, sales amounted to 1.43 billion KRW, with an operating loss of 12.7 billion KRW. This year, the sales target has been aggressively set at 5 billion KRW domestically and 15 billion KRW overseas. Researcher Ha added, "In the second half of this year, we will be able to make some judgments about the potential of market entry into the US and Japan."