Lunit reported on the 11th that its consolidated operating loss for the previous year reached 67.7 billion won, a 60.3% increase compared to the previous year. During the same period, sales rose 116% year-over-year to 54.2 billion won.
The company analyzed that the increase in the deficit was due to an increase in operating expenses following the acquisition of the U.S. artificial intelligence (AI)-based breast cancer diagnosis company Volpara Health in May of last year, as well as financial income and expenses arising from the issuance of convertible bonds and fair value assessments.
A Lunit official explained, "Although the operating loss for last year was 67.7 billion won, an increase from the previous year, the loss ratio compared to sales improved from 1.7 times in the previous year to 1.25 times."
In contrast, Lunit recorded its highest-ever sales last year. 88% of total sales came from overseas. Last year's overseas sales reached 47.8 billion won, a 124% increase compared to the previous year.
The company analyzed that the rapid growth was driven by Volpara's entry into the North American market and collaborations with big pharmaceutical companies regarding Lunit Scope, its flagship product in cancer treatment. Starting with a contract for the development of an AI-based digital pathology solution for non-small cell lung cancer with AstraZeneca (AZ) at the end of last year, it entered into an agreement to integrate Lunit Scope into Roche Diagnostics' digital pathology platform. Volpara's performance is expected to be reflected in Lunit's annual total results this year, forecasting a key role in future sales growth.
Last year, domestic sales also achieved 6.4 billion won, a 69% increase compared to the previous year. The chest X-ray AI imaging analysis solution 'Lunit Insight CXR' was made available for non-reimbursable treatment beginning in the first quarter of last year, while the breast screening AI imaging analysis solution 'Lunit Insight MMG' began non-reimbursable claims in the fourth quarter of last year, significantly expanding its adoption in domestic medical institutions.
Lunit CEO Seo Beom-seok said, "Following the acquisition of Volpara last year, we achieved our highest-ever performance as a result of strengthening collaborations with global pharmaceutical companies on Lunit Scope," adding, "This year, we intend to maintain our growth trend as additional collaborations with multiple global pharmaceutical companies are expected to be realized."