Lunit eyes developing markets with AI cancer diagnostics

Lunit Inc., a South Korean cancer diagnostics AI company, will accelerate its inroads into developing markets grappling with inadequate cancer diagnostic technology and infrastructure, said its chief on Monday.

“Our goal is to use AI to promote early diagnosis of breast cancer and lower the related mortalities in developing markets, which lack healthcare infrastructure,” Brandon Suh, chief executive of Lunit, said in an interview with The Korea Economic Daily.

The family medicine specialist, also known by his Korean name Suh Beomseok, unveiled Lunit’s plan to actively expand the presence of its artificial intelligence technology-powered cancer diagnostics software in developing countries under the goal.

He said the Korean digital healthcare company has drawn up detailed business plans for those markets after consulting with high-ranking officials from Thailand and Indonesia at this year's World Economic Forum's Annual Meeting of the New Champions (AMNC) held in Dalian, China, from June 25 to 27.

Suh attended the so-called Summer Davos in China as part of Lunit’s participation in the Associate Partners Community as the only AI healthcare firm.

Lunit’s bold ambition in developing markets comes after it successfully ventured into developed markets, especially the United States.

FDA NOD TO LUNIT'S AI CANCER DIAGNOSTICS SOFTWARE 

It has gained approval for its AI cancer diagnosis programs – AI imaging diagnosis software Lunit Insight DBT, AI triage solution Lunit Insight Triage and breast imaging analysis tool Lunit Insight MMG – from the US Food and Drug Administration (FDA).

In May, it completed its acquisition of Volpara Health Technologies Ltd., a New Zealand-based AI software developer for breast cancer detection, for 264.7 billion won ($191.3 million).

Volpara owns a trove of multinational and multiethnic medical and clinical data and supplies breast cancer detection software to 2,000 medical examining institutions in the US. 

The acquisition is expected to help Lunit develop autonomous AI models to screen, detect and diagnose cancer.

Last year, it also established a fully owned subsidiary in the Netherlands to advance into Europe.

Encouraged by its upbeat start in developed markets, Lunit is hastening its advance into developing markets.

PILOT PROGRAMS WITHIN A YEAR

The Kosdaq-listed digital healthcare company hopes to seize great growth opportunities in Southeast Asia and the Middle East, citing insufficient healthcare infrastructure there.

Thailand is struggling to offer adequate state-run cancer diagnosis and assessment programs to its people due to the lack of related infrastructure.

Lunit expects its AI cancer diagnostics software can be used as an effective tool to detect patients with high cancer risk in the country.

“About 90% of people receiving breast cancer screening at medical check-up centers are diagnosed normal,” said Suh. “Hospitals in developing countries only need to assess the remaining 10% potentially tested positive based on the AI examination.”

Lunit CEO expects its AI breast cancer diagnostics program will be more useful, especially in the Middle East, where female patients are reluctant to expose their bodies for breast cancer screening examinations due to religious reasons.  

Suh discussed various ways to lower systematic and cultural hurdles to its expansion in the region and other developing markets with officials from those countries at the AMNC last month, he said. 

“I got an impression that officials from different countries (in those regions) were highly interested in (our software),” said Suh. “We will expand our partnership with hospitals there and launch pilot programs within a year.”

REVENUE TO QUADRUPLE IN 2025

Lunit CEO expects its advance into developing countries will add to the company’s revenue growth, considering that people in developing countries suffer higher breast cancer rates than those in developed nations.

“Each government will provide funds as the mediator between Lunit and each hospital,” said Suh. “Considering the massive number of developing countries, meaning a bigger market, the growth potential in our revenue is also greater.”

According to the World Health Organization (WHO), 66,271 breast cancer cases were newly reported in Indonesia in 2022, more than three times the cases reported in Korea in the same year.

“Regular cancer examination significantly improves cancer survival rates,” said Suh, hoping to contribute to the global fight against cancers.

Lunit expects 80 billion won in revenue this year and 100 billion won in 2025, about four times more than last year’s revenue.

Write to Jeong Min Nam at peux@hankyung.com

Sookyung Seo edited this article.