Intelligent Ultrasound hails ‘another positive year of progress’ 

 (IUG ) hails “another positive year of progress” for the year ended 31 December 2020 despite the restrictions facing the business as a result of the pandemic. 

The ultrasound artificial intelligence (AI) software and simulation firm said its simulation division worked extremely hard to minimise the negative impact of Covid-19 and as a result, revenue only declined by 13% to £5.2 million in 2020 compared to £5.9 million in 2019. 

Despite the reduction in revenue, operating loss improved by 2% to £4.5m (FY19: £4.6m) while at period-end, the Group held cash of £8.8m and no debt compared to £7.3m in 2019. 

"This has been a positive year for the Group considering the impact of the Covid-19 lockdowns on our access to hospitals and the ability of our development teams to cope with the remoteness of home working,” said Riccardo Pigliucci, Chairman of the Company. 

While sales in Europe and Asia were impacted by global Covid-19 restrictions and declined to £1.4m (2019: £2.6m), sales in the UK and US grew by over 13% to £3.7m (2019: £3.3m). 

Over the period, GE Healthcare's SonoLyst technology on the Voluson SWIFT ultrasound machine, which utilises the Group’s ScanNav Assist AI software, received CE approval for sale in Europe and 510(k) clearance from the FDA for sale in the USA at the end of 2020. 

Meanwhile, the Company’s ScanNav Anatomy Peripheral Nerve Block (PNB) AI software, which supports nine common peripheral nerve blocks, was submitted for both CE and FDA approval during the year, with CE approval announced post year-end on 12 April 2021. 

“We minimised the effect of the pandemic on simulation division sales and Group operating losses, launched our first AI software with GE Healthcare, the world's largest ultrasound manufacturer and raised £4.8m from existing shareholders in May to strengthen our balance sheet,” said Pigliucci. 

The Company said it continues to progress its 'Classroom to Clinic' ultrasound strategy by expanding its range of ultrasound training simulators into new medical market sectors, building on its partnership with GE Healthcare as well as marketing the Group’s proprietary stand-alone AI systems that target the large pool of existing ultrasound machines. 

Three years on from the implementation of its ‘Classroom to Clinic' expansion, the Company said it believes the successful progress of all parts of the business ‘is reaffirming the wisdom of this decision’ and that it looks forward to continuing to build on this momentum. 

The Group said that for its simulation division, 2021 is expected to be a year of new product launches and revenue growth, adding that to date, its simulator sales have ‘started well.’ 

It said 2021 is expected to be a year of continued investment in R&D for the Group, but also one of focus on generating key study data ‘that will enable the longer-term acceptance and subsequent sales potential of AI in ultrasound to be realised from 2022 onwards.’ 

IUG believes its cash position of £6.6m will be sufficient to enable it to meet its anticipated profitability inflection point from expected future revenues from the clinical AI division. 

Pigliucci commented, “2021 has started well, with encouraging simulation sales as well as the recent announcement of CE approval for our second clinical AI software product.  

As such we remain confident that we can continue to build a successful 'Classroom to Clinic' ultrasound business and reach the profitability inflection point from a growing stream of simulation and clinical AI revenues. On behalf of the Board, I would like to thank our shareholders for their continued support, and we look forward to a successful 2021." 

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Earlier this month, the Group said it had received CE mark approval for its second artificial intelligence product, ScanNav Anatomy: Peripheral Nerve Block ("ScanNav PNB"). The Group now continues its expansion into AI-based real-time clinical ultrasound image analysis.   

Shares in Intelligent Ultrasound have now recovered strongly from lows of 10p at the height of the COVID crisis with the stock gaining over 40% since the beginning of March 2021 alone. The stock was trading 5.53% lower this morning at 18.8p following the announcement.  

Intelligent Ultrasound develops AI-based clinical image analysis software tools for the diagnostic medical ultrasound market and hi-fidelity VR simulators for the ultrasound training and education markets.  

Recent Positive News  

In a recent trading update for the 12 months to December 2020, IUG said it has enough operational flexibility to weather the COIVID storm, whilst investing for future growth.  

Sales from its direct UK and US sales team are expected to have grown by over 15% to £3.8m (FY19: £3.3m), helped by strong sales from the Group's ScanTrainer and BodyWorks simulators, which incorporate the group’s ‘free of charge’ Covid-19 lung training module.  

However, sales in Europe and Asia, that are made through IUG’s reseller network, were impacted by Covid-19 restrictions and are expected to have declined to £1.4m (FY19: £2.6m).  

Global Partnership with GE  

The Group announced in 2020 that it had been working closely with GE to commercialise its AI technology. GE launched the “Voluson SWIFT” ultrasound machine in October 2020, that incorporates IUG’s ScanNav Assist AI technology in its SonoLyst software. GE now has both CE approval for sale in Europe and 510(k) clearance from the FDA for sale in the USA.   

GE’s SonoLyst is the first AI software to be launched under IUG’s long-term licence and co-development agreement with GE. It is also the world's first fully integrated AI tool that recognises the 20 views recommended by the International Society of Ultrasound in Obstetrics and Gynaecology mid-trimester practice guidelines for fetal imaging. The Voluson SWIFT is the first of the three product types in GE’s Voluson range to offer SonoLyst.  

The GE Voluson SWIFT, when deployed in private healthcare settings, increases the speed of ultrasound procedures whilst ensuring correct quality levels are consistently achieved.   

This has the potential to increase revenue for the operator and therefore provide GE Healthcare with a more compelling sales proposition than that of its competitors.   

Prof Aris Papageorghiou, Professor of Fetal Medicine, St George's Healthcare NHS Trust, London called the technology a “big advance for ultrasound imaging in women’s health.”   

He added, “I have worked in the field of AI in ultrasound for over ten years, yet I am still amazed at the level of accuracy that has been achieved. You can really see how Intelligent Ultrasound's AI technology, incorporated in the SonoLyst software, will improve efficiency, make the learning of ultrasound easier and reduce omissions and errors.”  

Commenting on the trading update, Stuart Gall, CEO of Intelligent Ultrasound Group said the group had seen “a very positive year” despite the impact of Covid-19, commenting:  

“The Clinical AI Division has continued to perform well, with GE Healthcare's Voluson SWIFT ultrasound machine, that incorporates Intelligent Ultrasound's ScanNav Assist AI technology in its SonoLyst software, receiving CE approval for sale in Europe and 510(k) clearance from the FDA for sale in the USA.”  

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