Lunit buys breast cancer detection AI firm Volpara Health

Lunit Inc., a South Korean cancer diagnostics AI company, has completed the acquisition of Volpara Health Technologies Ltd., a New Zealand-based AI software developer for breast cancer detection, for 264.7 billion won ($194 million), the two companies said on Wednesday.

The deal is expected to improve Lunit’s cancer diagnostics capabilities and smooth its entry into the US market. Volpara derives most of its revenue from the world’s largest healthcare market.

The Kosdaq-listed Lunit acquired full ownership of Volpara.

“Lunit integrates Volpara’s advanced breast health platform such as breast density assessment, Scorecard™ and screening workflow enhancement with its AI-powered solutions for breast cancer detection,” Lunit said in a press release.

Volpara Scorecard refers to AI software used to assess breast tissue composition.

“While our initial focus remains on breast cancer, both Lunit and Volpara are committed to broadening our offerings to address a wider range of cancers and medical conditions,” said Brandon Suh, chief executive of Lunit.

The family medicine specialist is also known by his Korean name Beomseok Suh.

AI technology has been developing fast enough to now be able to interpret X-ray images, posing a threat to radiology jobs as the demand for it grows.

“With the improvement in AI performance and accuracy, I think we will be able to perform medical services with AI alone [in areas such as X-ray analysis]. This means that doctor intervention may not be necessary,” Suh added.

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

It will also leverage Volpara’s broad customer base in the US and utilize the latter’s vast trove of multinational and multiethnic medical and clinical data.

Volpara, with an office in Seattle, US, supplies breast cancer detection software to 2,000 medical examining institutions in the United States.

The AI-powered cancer diagnostics market is expected to continue to grow, after the US Preventive Services Task Force recently recommended lowering the breast cancer screening age from 50 to 40.

Lunit will promote Volpara’s products in Europe, Asia, the Middle East and South America, where it has established footholds.

Write to Yoo-Rim Kim at youfirst@hankyung.com
Yeonhee Kim edited this article