Classroom to clinic ultrasound specialist Intelligent Ultrasound (IUG) said in a trading update that it’s on track to triple revenues from its AI division in 2023, helped by partner GE Healthcare’s decision to include AI capabilities as a standard feature on two of its Volusen women’s health ultrasound machines.
The increase in AI sales to £2m helped offset a slight dip in its classroom simulation revenues to £9.1m and lift overall revenues 10% to £11.2m. Stripping out a one-off £2m NHS simulation order delivered in 2022, and underlying sales grew 38%, even though simulation sales in China and Europe were £1m lower than expectations.
The company remains confident in further growth of its AI business, thanks to expansion into gestational age ultrasound via its non-GE ScanNav FetalCheck development programme and further upgrades to its ScanNav Anatomy Peripheral Nerve Block software in the second quarter.
An agreement was also reached with Dundee University for scanning liver images, while the launch of a ScanTrainer Endometriosis module is expected to help the simulator division return to growth in 2024. That underpins expectations of sales reaching between £14m and £17m in 2024, and the group hitting profitability from its current cash of £3m, down just £0.3m over the year.
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The inclusion of Intelligent Ultrasound’s AI capabilities as a standard feature on GE Healthcare’s Volusen range is a ringing endorsement of its industry leading capabilities and provides a solid foundation for further growth as clinicians recognise the benefits of AI-assisted ultrasound scanning.
With profitability in sight low cash burn in the period is also highly encouraging. A drop in the share price today as a result of short-term weakness in its simulation division offers investors a great opportunity to buy into what promises to be significant long-term growth in the burgeoning use of AI in the healthcare industry.