LungLife AI awarded accreditation by the College of American Pathologists (CAP)

It’s no good developing the best medical diagnostics, if you haven’t got a healthcare grade facility to perform the tests.

Today came news that LungLife AI’s (LLAI ) existing laboratory in Thousand Oaks, California had been awarded accreditation from probably one of the world’s most respected cancer organisations, the College of American Pathologists (CAP).

Not only providing a 'gold-plated' endorsement , but also providing LLAI with access (via CAP "deeming authority") to the Centers for Medicare & Medicaid Services (re insurance cover) without the need for a future inspection.

Lara Baden, VP Clinical Operations, adding: "This accreditation will provide ordering physicians & patients a further degree of confidence in the results they are receiving for our LungLB test as well as for future products."

Here LungLB is a ground-breaking & easy to use, AI enabled ‘circulating tumour cell’ (CTC) blood test. Not only generating a ‘Positive Predictive Value’ of 89%. But also providing doctors with a much better tool to accurately tell whether CT-scanned patients have early-stage lung cancer.

1st sales are set for 2023, after completing a multi-centre validation study, obtaining regulatory clearance & US medical insurance cover. 

Wrt size, the US market is estimated to be $2.9bn/year. Meaning that if ultimately LungLife AI captured say a 5% share (or revs $145m). Then on a 5x EV/sales multiple (vs peers 8x-12x), this would equate to a theoretical valuation of $725m (or £20/share).

Finally, as another major stamp of approval of the technology, LungLife AI is backed by Mount Sinai Health System (9.7% stake), alongside a “who’s who” of lung cancer experts on the science advisory board.