Lunit receives $150M capital chip-in, doubles down on US market

Shareholders of KOSDAQ-listed Lunit have recently participated in the company’s recent capital raise, paying-in $150 million to fund its development of “next-generation” products and further expansion in the West. 

Meanwhile, the AI cancer diagnostics solutions provider obtained its third 510(k) clearance from the United States Food and Drug Administration.

WHAT IT’S FOR

In a company disclosure, Lunit shared that more than a third or about $52 million of its capital proceeds will go to building new AI cancer diagnostics and therapeutics; $38 million will be invested in its subsidiaries in the United States and Europe; $30 million will be used to invest in external startups; and $15 million each will go to global talent and labour recruitment and acquiring patents, licences and other intangible assets.

“We’re eager to use these funds to advance our innovative products, explore new pharmaceutical avenues, and recruit global talent,” said CEO Brandon Suh. 

THE LARGER TREND

Lunit is increasing its focus on the US market, which reports one of the highest cancer cases in the world today. In 2020, it recorded about 400 new cancer cases and 144 cancer deaths for every 100,000 people. Driven by high cancer incidence and mortality, cancer diagnostics in the US was valued at $31 billion last year; Precedence Research projects it to be worth $70 billion by 2032, growing at 8.4% CAGR. 

A day before it announced its significant capital raise, Lunit disclosed that it received the US FDA approval for its AI 3D Breast Tomosynthesis (DBT) solution. The 510(k) clearance for Lunit INSIGHT DBT – a solution that automatically analyses 3D DBT images to spot breast cancerfollows similar clearances for the Lunit INSIGHT CXR and MMG, which were both obtained in 2021. 

The 3D DBT analysis solution has also been CE-marked under the latest Medical Device Regulation since March.

Last week, Lunit participated in the inaugural project of the White House’s CancerX initiative, a catalogue showcasing solutions for cancer screening and diagnosis, treatment and end-of-life care, and survivorship. The company is a founding member of the said initiative. 

Over the past 12 months, Lunit went around the US to promote and integrate its AI solutions and secure multiple partnerships, including with CARPL.ai and its investor Guardant Health.

Besides the US and Europe, Lunit has also particularly set its sights on the Middle East. Earlier this month, it extended its partnership with Saudi Arabia’s Seha Virtual Hospital (SVH), which is said to be the largest virtual hospital in the world. The company will be supplying its AI solutions to 150 sites under SVH. The healthcare network SEHA in the United Arab Emirates has also tied up with Lunit to test out its solutions.