Lunit maps path to profitability by 2027, rules out rights offering

Lunit, a Korean AI medical imaging company, has mapped out a detailed roadmap to turn profitable by 2027, assuring shareholders that it will not pursue a rights offering to fund daily operations despite concerns over its cash position.

Speaking at the company’s 12th annual general shareholders’ meeting (AGM) held at the Bride Valley in Gangnam, Seoul, on Thursday, Lunit CEO Brandon Suh addressed the firm’s mid-to-long-term strategies, emphasizing a shift from traditional revenue streams to more integrated cancer screening and diagnostics solutions backed by artificial intelligence.

“We believe conquering cancer begins with improving survival outcomes through early detection,” Suh said. “We aim to provide precise diagnostics and effective treatments through commercialized products such as Lunit INSIGHT and the expanding Lunit SCOPE platform.”

Lunit is banking on Lunit SCOPE, its AI-based pathology diagnostic solution for precision oncology, and its collaboration with global pharmaceutical players to generate new growth. The company revealed that its first FDA-approved companion diagnostics product is expected to launch by 2027, with regulatory groundwork already underway.

Companion diagnostic push gathers momentum

Ken Nesmith, Chief Business Officer overseeing Lunit SCOPE's global operations, discussed the company's growing pharmaceutical partnerships during the AGM.

Research revenue from collaborations with companies like AstraZeneca is expected to grow from 4 billion won ($2.7 million) last year to approximately 10 billion won this year, potentially reaching 20 billion won next year.

"We're currently engaged in discussions and research with top global pharmaceutical companies," Nesmith said. “As research projects advance through development stages, significant revenue growth is expected.”

Nesmith also highlighted Lunit's strategy for companion diagnostics development, which involves working with pharmaceutical companies to determine which patients would benefit most from specific cancer treatments.

He explained that Lunit is pursuing two approaches -- enhancing existing biomarkers like PD-L1 or HER2, and developing companion diagnostic programs for new biomarkers. The company expects its first FDA-cleared products in this area to be available by 2027.

The partnerships with pharmaceutical companies involve competitive evaluations where Lunit competes directly with other AI companies.

According to Nesmith, Lunit often wins these competitions, solidifying its position in the companion diagnostics pathway. The company is working closely with AstraZeneca and pathology labs around the world to improve AI model performance and optimize clinical workflows.

Suh added that Lunit's AI technology using pathology data represents a novel approach that wasn't available five years ago.

“Traditionally, pathology data was only used to confirm cancer diagnoses, but Lunit has pioneered extracting valuable biomarker information from this data through their AI solutions,” he said.

Lunit expects revenue of 80 billion won in 2025

CEO Suh projected that Lunit would achieve revenue of at least 80 billion won in 2025, marking a 47 percent increase from the previous year. This includes 70–75 billion won from Lunit INSIGHT and other imaging AI solutions and around 10 billion won from Lunit SCOPE.

He set a firm target for profitability by 2027, while noting that quarterly profitability might be possible by the fourth quarter of 2026.

Notably, Suh stressed that while the company may have reached profitability much faster, it had invested significantly in future technologies to better prepare for a rapidly evolving sector.

"If we had focused solely on operations without these investments over the past 2-3 years, we could have reached profitability this year or in the near future,” he said.

The acquisition of Volpara is expected to significantly contribute to revenue growth beginning this year. According to Suh, Volpara generated approximately 40 billion won in revenue last year, with results only incorporated into Lunit's financials from May.

For 2025, the company projects combined revenue from Lunit Insight and Volpara in the cancer screening sector to reach approximately 75 billion won.

No rights offering for operating capital

Addressing concerns about potential cash shortages, Suh emphatically stated that Lunit will not conduct a rights offering for general operational purposes. As of the end of  2024, the company had approximately 52.4 billion won in cash and cash equivalents.

"I can clearly promise that we will not issue new shares to raise operating funds," he assured shareholders. “If additional capital is needed before reaching profitability, the amount would be relatively modest—around 20-30 billion won—which could be secured through loans or by using Volpara as collateral.”

Suh emphasized that the company remains committed to long-term R&D investments, spending 28.4 billion won last year—significantly more than the previous year.

Aiming for autonomous AI by 2030

Looking further ahead, Lunit laid out its vision of autonomous AI in cancer screening. The company believes the nature of routine screenings—with high volume and low complexity—makes them ideal for fully automated AI systems.

Suh likened this vision to autonomous vehicles such as those developed by Waymo and Tesla.

“Autonomous AI will be our game-changer, especially in underserved regions with severe radiologist shortages,” he said. “For that, we are developing a customization platform that can tailor AI models to site-specific data, solving variability in scanner types and regional pathology.”

Lunit plans to test this platform at three Volpara-affiliated sites in the U.S. later this year.

“The AI must adapt autonomously to each clinical site and maintain accuracy, especially if we are to bear legal liability in autonomous workflows,” Suh said.

Market confidence and governance

To reinforce global expansion and investor confidence, Lunit appointed Lee Joon-pyo, CEO of SBVA, as a new outside director. The firm also reappointed Garheng Kong of HealthQuest Capital, a long-time global advisor to Lunit.

In response to shareholder concerns, Suh vowed greater transparency and communication going forward—especially on matters such as executive stock sales.

“The future of Lunit is a high-stakes race in medical AI,” Suh concluded. “We are focused on sustainable growth, stakeholder trust, and global leadership.”