VUNO knocks on the U.S. market to generate operating profit

Generated the highest sales last year in the company's history, yet its operating profit and net profit indicators are negative

Expects to generate stable domestic sales with the 'New Health Technology Assessment System'

After officially launching the product, showcased at AAIC, in the U.S. market on July 28th, VUNO will focus on expanding its sales network

Medical artificial intelligence (AI) company VUNO has launched an AI-based brain quantification device in the United States market.

 

Whether the company will use this as a stepping stone for sales expansion garners attention.

 

VUNO's strategy is to quickly turn around by increasing the sales performance of its major product and entering the overseas market.

 

At the same time, improving negative indicators for operating profit and net profit would take time.

 

VUNO officially launched its product to the U.S.

 

market on July 28th, seeking to expand sales.

VUNO's consolidation sales last year were KRW 13.3 billion, the highest sales in the company's history.

 

The company achieved a 60% increase from the sales of KRW 8.2 billion in 2022.

 

Quarterly report also showed an increasing trend.

 

VUNO's quarterly sales last year were ▲KRW 1.7 billion in Q1, ▲KRW 3 billion in Q2, ▲KRW 3.5 billion in Q3, and ▲KRW 4.9 billion in Q4.

 

This year's Q1 sales were KRW 5.5 billion.

 

The analysis suggests that VUNO's rising performance has been led by the growth of VUNO's major product, DeepCARS, an AI-based cardiac arrest prediction software, increased domestic and international sales of medical image products, and successful business-to-consumer (B2C) commerce.

 

Notably, VUNO's DeepCARS entered the market as the first drug to be deferred from the 'New Health Technology Assessment,' which was in effect in August 2022.

 

After that, the company likely established a stable sales structure and rather than generating temporary sales.

 

The remaining issue is negative indicators for operating profit and net profit.

 

Vuno's quarterly operating profit and loss last year resulted in a ▲loss of KRW 4 billion for Q1, ▲loss of KRW 5.3 billion for Q2, ▲loss of KRW 1.8 billion for Q3, and ▲loss of KRW 2.5 billion for Q4.

 

In Q1 this year, VUNO also recorded an operating loss of KRW 3.4 billion and a net loss of KRW 3.4 billion.

 

The total operating loss last year was KRW 13.7 billion.

 

This year, a similar loss is expected when calculating based on Q1 loss.

 

However, a sales turnaround may be possible after entering the U.S.

 

market.

 

The company recently attended the Alzheimer's Association International Conference (AAIC) and officially launched its AI-based brain quantification medical device, VUNO Med®–DeepCARS™, in the U.S.

 

market.

 

VUNO Med®–DeepCARS™ is an AI medical device receiving approval from the U.S.

 

Food and Drug Administration (FDA) in October 2023.

 

VUNO plans to build its sales network by increasing interactions with key stakeholders (KOL) to accelerate market penetration.

 

In June, the company participated in its U.S.

 

subsidiary's paid-in capital increase by investing KRW 3 billion to enter the North American market.

 

As the company aims to penetrate the U.S.

 

market, VUNO protects its key technology by registering patents.

 

VUNO announced on July 30th that it has decided to register two patents associated with VUNO Med®–DeepCARS™.

 

The company plans to gradually seek sales expansion opportunity following an increase in demand for early The company will need to reach a specific revenue level to address the main causes of operating losses: selling, general, and administrative expenses.

 

Therefore, VUNO is expected to intensify its efforts to target the U.S.

 

market.

 

Yeha Lee, the CEO of VUNO, said, "Two patents that we have registered is an AI-based key technology with various potential uses in clinical practices.

 

It increases the efficiency of brain MRAI analysis." Lee added, "We will make a strategic approach to successfully enter the U.S.

 

market, of which early entry is crucial.

 

We will strive to help address dementia with the product."