[2024 JPMHC] Seobeomseok, CEO of Lunit, "Full-scale Entry into US Market with Acquisition of Volpara"

"We will conclude our entry into the U.S. market this year with the acquisition of Volpara Health Technology, following last year's FDA approval of our AI-based breast tomosynthesis analysis product, Insight DBT." (Beomseok Seo, CEO of Lunit)

Beomseok Seo, CEO of Lunit, met with Asia Economy in San Francisco, California, where the world's largest pharmaceutical and biotech investment event, the JP Morgan Healthcare Conference (JPMHC), is being held, and stated that this year will mark the starting point of their U.S. expansion.

Seo Beom-seok, CEO of Lunit, is being interviewed by Asia Economy in San Francisco, California, USA, where the JP Morgan Healthcare Conference (JPMHC) is taking place.
[Photo by Lee Chun-hee]

Seo said, "Last year, we received significant attention in the global medical industry market, and through increased sales and market capitalization, we proceeded with a paid-in capital increase and the acquisition of Volpara," adding, "This year, the Volpara acquisition remains our biggest agenda." He noted, "The deal has not yet been finalized, and the subsequent integration process will by no means be easy," and added, "This year will be one where we execute the strategies we have been contemplating for greater growth, which we presented on our 10th anniversary last year."

Founded in 2013, Lunit is a company developing AI-based medical imaging diagnostic and treatment platforms. It is targeting the global market with its AI imaging analysis solution for cancer diagnosis, Lunit Insight, and its AI biomarker platform for cancer treatment, Lunit Scope. CEO Seo, a family medicine specialist who graduated from KAIST’s Department of Biological Sciences and Seoul National University College of Medicine, joined Lunit as Chief Medical Officer (CMO) in 2016 and has been serving as CEO since 2018.

Last month, Lunit signed a contract to acquire Volpara, a New Zealand multinational company supplying AI medical solutions to 2,000 U.S. medical institutions, for $193.07 million (approximately 250 billion KRW), securing a foothold for U.S. market entry. Seo explained, "Our products and Volpara’s do not overlap at all, so the synergy is significant," and added, "We have secured product lines that Lunit did not have, such as breast density measurement and reading report assistance."

Lunit plans to sell its products in the U.S. market under the Volpara brand. Seo said, "Since Volpara has higher brand recognition than Lunit in the U.S., we will maintain the Volpara brand," and added, "Conversely, in other regions such as Europe, we will add Volpara products to Lunit’s sales network for distribution."

Seo stated that participation in JPMHC was decisive for the successful acquisition of Volpara. He said, "We first met Evercore, who is assisting with the Volpara acquisition, at last year’s JPMHC," and added, "Corporate acquisitions were an area Lunit had never ventured into before, so building a relationship with Evercore was a great help." He also remarked, "JPMHC seems to be a place where we can lay the foundation to grow into a truly global company," and said, "Lunit’s status has changed; whereas before we proposed investments, now we receive many requests for investment."

Seo expects domestic sales, which currently account for about 13% of total revenue, to increase further this year. He said, "Domestically, we received designation as an innovative medical technology last year," and added, "It seems that it will initially be covered as a non-reimbursed item under health insurance." Currently, domestic hospitals purchase and operate Lunit’s solutions at their own expense, and patients do not bear the cost of treatments using Lunit. Seo said, "Once non-reimbursed coverage becomes possible, more hospitals will use our products," and added, "Through this, we will increase domestic sales."

On the occasion of its 10th anniversary last year, Lunit is also preparing to achieve its vision of "10 trillion KRW in sales in 10 years." Among these efforts, the corporate venture capital (CVC) that raised funds through last year’s paid-in capital increase is expected to yield results within this year. Seo said, "Not long ago, there were talks that AI healthcare was 'overhyped,' but now it is a matter of 'when and how,' and the growth potential is certain."

This content was produced with the assistance of AI translation services.