Lunit said on Monday FujiFilm's AI solution for chest X-ray analysis, CXR-AID, which uses Lunit INSIGHT CXR software, has obtained health insurance reimbursement in Japan.

As of 11:02 a.m. Monday, Lunit's stocks on Kosdaq jumped by approximately 25 percent.

The reimbursement is provided under the "Imaging Diagnosis Reimbursement Class 3" category of the Japan Ministry of Health, Labor, and Welfare (MHLW), which grants additional reimbursement points to hospitals. 

The MHLW recently added the new Class 3 condition for hospitals utilizing AI image diagnostics software which adheres to specific facility and safety criteria.

The Japan Radiological Society also issued a guideline addressing the implementation of AI solutions in hospitals, along with a list of qualified medical AI software eligible for health insurance reimbursement. 

Accordingly, 17 medical AI solutions including CXR-AID are eligible for reimbursement at Japanese hospitals and medical institutions.

The Japanese system operates based on medical service fee points according to the insurance-applicable medical services, pharmaceuticals, and medical devices provided. 

With the green light for health insurance reimbursement, Japanese hospitals, and medical institutions can deliver enhanced diagnostic services while receiving the government's 340 reimbursement points (worth JPY 3,400).

Consequently, this significantly boosts Lunit and FujiFilm's expansion in the Japanese market where its screening devices and solutions are already being utilized by over 25,000 medical institutions nationwide. 

"We anticipate this will enhance patients' access to medical AI solutions and alleviate the financial strain of medical expenses," said Ryuji Hisanaga, Product Manager of FujiFilm IT Solutions. 

"Lunit and FujiFilm are committed to supporting Japanese medical practices by providing them with an advanced AI solution that enhances screening accuracy and offers financial benefits through reimbursement," said Lunit CEO Brandon Suh. "We anticipate that more countries will provide institutional support for our AI-based diagnostics solutions.”

Previously, in 2019, Lunit partnered with Fujifilm in Japan to exclusively distribute Lunit Insight in Japan and later received approval from Japan's Pharmaceuticals and Medical Devices Agency (PMDA) in 2021.