Lunit, a Korean biopharmaceutical company specializing in artificial intelligence (AI)-based cancer solutions, said on Friday that it will establish a new subsidiary in Amsterdam, the Netherlands, following a board of directors meeting held on Thursday.

Accordingly, Lunit Inc. will hold a 100 percent stake in Amsterdam-based Lunit Europe Holdings. The company said it would begin full-scale local recruitment.

Previously, Lunit conducted and managed its European business through its branch office. However, the establishment of Lunit Europe Holdings is expected to facilitate the company’s plans to expand its sales network in Europe and strengthen partnerships with global medical device companies including GE Healthcare, Agfa Healthcare, and Fujifilm.

In 2019 and 2020, Lunit obtained CE marks and commercial approval in the European Union for its AI radiology solutions, Lunit INSIGHT CXR, and Lunit INSIGHT MMG, respectively. Since then, the company has accelerated its presence in the European medical device market through various partnerships with global companies, as well as major clinical studies validating the effectiveness of Lunit’s AI in helping radiologists to analyze chest x-ray and mammography images.

In particular, the establishment of the European subsidiary is expected to positively impact the expansion of sales of Lunet Insight MMG, a mammography AI image analysis solution for breast cancer screening, said a company official.

This is because most European countries have made it mandatory for "double reading" to be performed, requiring two radiologists during breast cancer screening. However, the shortage of radiologists is increasing and thus, the use of AI as an alternative to double reading is attracting attention.

With the formation of Lunit Europe Holdings, Lunit plans to expedite its business development across the European Union and the European Free Trade Association (EFTA).

“The creation of Lunit's European subsidiary is a major initiative to boost our business agility and seize new business opportunities within the European market,” said Lunit CEO Brandon Suh. “We expect the subsidiary to serve as a stepping-stone to increase our profitability by strengthening Lunit’s global capabilities and brand awareness.”