In a trading update, ​​​​​​Intelligent Ultrasound (IUG) said revenue for the period to 30 June 2021 is expected to increase by 40% mainly due to a strong recovery across its simulation division.

The ultrasound artificial intelligence (AI) software and simulation company told investors that it expects to report revenue for the period at £3.6 million, up 40% from £2.5 million in 1H20. 

In particular, simulation sales from the Group's direct sales team, which together cover the UK and US, are expected to have grown by nearly 50% to £2.8 million from £1.9 million in 2020. 

The London-listed Company said this growth has been helped by strong sales from the Group's ScanTrainer and BodyWorks simulators, which incorporate the free of charge Covid-19 lung training module that was developed in response to the pandemic in early 2020.

Meanwhile sales in the rest of the world, that are made through the Group's reseller network, are expected to have grown by over 30% to £0.8 million, up from £0.6 million in 1H20. 

The clinical AI division remains in the early stages of commercialising its first AI products - the ScanNav Anatomy Peripheral Nerve Block system, that received CE approval in March and was launched for sale in the UK in April, and the ScanNav Assist software that is integrated into GE Healthcare's SonoLyst software on its Voluson SWIFT ultrasound machines.

The clinical AI division expects to recognise nominal revenue of £0.1m from its product range, with AI revenue expected to accelerate once the longer than anticipated Covid restrictions relax and face-to-face medical exhibitions and congresses re-start later in the year, it noted.

Although the planned increases in R&D, office and warehouse expansion, and higher group insurance costs were mostly offset by an increase in gross profit, the operating loss for the period is expected to increase to around £2.3m (2020: loss of £2.0m), IUG told investors.

Cash at bank at 30 June 2021 is expected to be around £6m (31 December 2020: £8.8m) with the expected reduction including a £1m rise in working capital since 31 December 2020.

Stuart Gall, CEO of Intelligent Ultrasound, said: "This has been an excellent start to the year, with a strong simulation division sales performance, a small early-stage revenue contribution from our first AI products, and encouraging product development in both simulation and AI.”

He said, “We are, however, conscious that the pandemic is still restricting medical exhibitions, hospital access and budgets and that our new AI products are launching into new markets that need both time to accept the product and time to roll out and build to significant revenue.”

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In May 2021, Intelligen Ultrasound announced that it had successfully registered with the Medicines and Healthcare products Regulatory Agency (MHRA), the UK's regulator of medicines, to market ScanNav Anatomy: Peripheral Nerve Block ("ScanNav PNB") in the UK. 

The registration of ScanNav PNB by MHRA, which enables the Group to market the product in the UK, follows Intelligent’s news in April that it had achieved a CE-mark for the product as part of the group’s efforts to expand 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. The stock was trading 3.33% higher this morning at 15.50p this morning.

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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