In its half-year report for the period to 30 June 2021, Intelligent Ultrasound (IUG ) said it had seen a good start to 2021 following  “strong revenue and an encouraging performance.” 

The AI based ultrasound software and simulation firm said ‘an excellent trading period’ from its simulation division had resulted in revenue rising over 45% to £3.6m from £2.5m in 1H20.  

Sales from the Group's direct sales team, which together cover the UK and USA, grew by nearly 50% to £2.8m (1H20: £1.9m), amid strong sales from the Group's ScanTrainer and BodyWorks simulators which incorporate the free of charge Covid lung training module. 

The Group said this represents its ‘best start to a year yet’ and that revenue from the UK was ‘particularly impressive’ with sales growing by over 60% to £1.6m (1H20: £1.0m). 

Sales outside the UK, which have been affected by the pandemic, showed the first signs of recovery over the period, it said, with sales growing by over 30% to £0.8m (1H20: £0.6m). 

The firm’s operating loss of £2.3m rose by £0.3m in 1H21 compared to the prior period (1H20: £2m) due to ‘higher R&D costs and administrative expenses, relating to professional fees and insurance costs, totaling £1.1m, exceeding the increase in gross profit of £0.8m.’ 

In 1H21, the Group launched a remote eLearning module for the HeartWorks platform, a Saving Babies Lives module for ScanTrainer. In addition, work continued on two simulator platforms that are expected to launch in the 2H21 and are anticipated to grow the division.  

To date, the Group said it has witnessed ‘excellent progress’ in the early commercialisation of the group’s first two AI products within its clinical AI division which remains focused on moving AI into the clinic to give real-time support to clinicians whilst they are scanning. 

GE Healthcare continued the global roll-out of SonoLyst on the Voluson SWIFT, which is the first GE ultrasound system to utilise its ScanNav Assist real-time image analysis AI software. 

It is first AI software to be launched under the firm’s agreement with GE Healthcare. 

Although the roll-out was impacted by COVID-19, the Group remains confident that AI revenues will rise ‘once the longer than anticipated Covid restrictions on capital expenditure relax and face-to-face medical exhibitions and congresses re-start later in the year,’ it noted. 

The Group said it continues to develop more variants of ScanNav Assist that will support new protocol-based scanning markets, with anticipated launches of the product in 2022. 

In addition, the firm also continues to progress an FDA regulatory filing for its CE-approved ScanNav Anatomy Peripheral Nerve Block which was launched for sale in the UK in May. 

While the pandemic has impacted the speed and intensity of the roll-out of new AI products the Company said it expects the re-starting of medical congresses and exhibitions in 1H21 to enable new product take-up to accelerate in the second half of 2021 and 2022. 

The Group said 2021 is expected to be ‘a year where the simulation Division continues its impressive growth, and it continues to invest heavily in R&D in both of its core businesses.’ 

Commenting on today’s results, Stuart Gall, CEO of Intelligent Ultrasound said: "Our new AI products are first to market and therefore require time to gain acceptance before significant revenue can be achieved. As the pandemic has restricted medical exhibitions, hospital access and budgets, the time required to gain this market acceptance has been extended.” 

He added: "2021 is therefore expected to be a year where we will continue to invest heavily in R&D. In addition, the Group is focusing on generating the compelling key opinion leader study data that will facilitate the acceptance and subsequent sales potential of AI in ultrasound to be realised from 2022 onwards. We remain confident that we can continue to build a successful 'Classroom to Clinic' ultrasound business in this exciting sector of the market." 

Shares in Intelligent Ultrasound were trading 1.51% higher this morning at 14.31p immediately following the release of the Company’s half-year report for 1H21. 

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