GE Healthcare Acquires Intelligent Ultrasound's Clinical AI Business to Strengthen Imaging AI Portfolio

Jul 20, 2024 19:30 CST Updated 19:30

Intelligent Ultrasound

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On July 18 local time, GE Healthcare announced that it had reached an agreement，GE Healthcare to Acquire Intelligent Ultrasound Group's Clinical AI Software Business for $51 Million (Approx. RMB 370 Million)

IUG Focuses on Developing Integrated AI-Driven Image Analysis Tools, Committed to Enhancing the Intelligence and Efficiency of Ultrasound Technology.GE Healthcare plans to fully integrate these advanced AI solutions into its ultrasound product line, thereby optimizing workflows and enhancing the user experience for clinicians and patients.

According to the agreement, the product software and R&D team of IUG Clinical AI will be integrated into GE Healthcare, serving as a strong complement to the existing AI equipment portfolio., and accelerate the development of its next-generation AI tools.Currently, GE Healthcare ranks first among medical technology companies in terms of the number of AI device authorizations granted by the FDA.

Acquisition at a 70.9% Premium

Data shows that Intelligent Ultrasound Group plc (IUG), a leading AI software and simulator company for ultrasound based in the UK, is committed to enhancing the ultrasound imaging and diagnostic capabilities in the healthcare industry through innovative artificial intelligence and simulation technologies.

The company currently has two majorMain Business:Clinical AI Business and Ultrasound Simulator Business.Among them, clinical AI includes ScanNav Anatomy PNB (for real-time AI-assisted regional anesthesia and analgesia) and ScanNav Assist (real-time AI image analysis for obstetric ultrasound).

GE Healthcare's proposed transaction for its clinical AI business is valued at $51 million, which is 33.8 times the business unit’s full-year revenue for 2023 and represents a 70.9% premium over Intelligent Ultrasound Group plc's closing price yesterday.After the sale is completed, IUG will retain its ultrasound simulation business, which generated a total revenue of 10 million pounds in 2023.

ScanNav Anatomy PNB

ScanNav Anatomy Peripheral Nerve Block (PNB)Aimed at improving the accuracy and standardization of ultrasound image interpretation by providing color overlays of key anatomical structures during real-time ultrasound scanning.

This solution was co-developed by IUG and leading experts in the field of anesthesiology.Supports highlighting anatomical structures in 10 key areas.These areas are related to regional anesthesia and analgesia under ultrasound guidance, including all seven "Plan A" block methods.

ScanNav Assist

ScanNav Assist is the core of GE Healthcare's SonoLyst software.As early as 2019, IUG signed an exclusive agreement with GE Healthcare to integrate this real-time AI image analysis technology for obstetric ultrasound into GE Healthcare's Voluson Expert, Voluson Signature, and Voluson Swift ultrasound devices.

According to reports,GE Healthcare's SonoLyst is the world's first fully integrated AI tool capable of identifying 20 fetal ultrasound image views recommended by the International Society of Ultrasound in Obstetrics and Gynecology (ISUOG) Mid-Trimester Practice Guidelines.

Continuous Acquisitions, Doubling Down on Imaging AI

According to statistics, as examinations become increasingly complex, 81% of hospitals face a shortage of radiologic technologists, and 90% of ultrasound technicians experience heavy workloads and repetitive tasks.Musculoskeletal disorders caused by movements or other reasons.

GE Healthcare's acquisition this time aims to reduce manual operations and enable clinicians to focus more on patient care by streamlining workflows and introducing AI-driven protocols.Moreover, the deal will further enhance GE Healthcare's AI device lineup and accelerate the development of its next-generation AI tools.Currently, GE Healthcare ranks first among medical technology companies in terms of the number of AI device authorizations granted by the FDA.

This is also GE Healthcare's first move after completing its spin-off and becoming independent, followingThe second AI-related deal after acquiring Caption Health.

In January 2023, GE Healthcare was officially spun off from GE Group and listed on the NASDAQ Stock Exchange in the United States.After becoming independent, GE Healthcare has continuously strengthened its layout in the artificial intelligence field through mergers, acquisitions, and collaborations.

In September last year, GE Healthcare revealed plans to develop an artificial intelligence (AI)-assisted ultrasound imaging automatic assessment tool in the future,Used to increase access to high-quality medical services around the world.

In February last year, the company also acquired Caption Health, a developer of AI ultrasound technology.Adding AI-driven ultrasound technology to its product portfolio, further strengthening its layout in medical imaging AI. Currently, Caption Health has launched an FDA-approved artificial intelligence-assisted cardiac ultrasound diagnostic software.

In January this year, GE Healthcare announced plans to acquire MIM Software, a provider of artificial intelligence and medical imaging analysis.Integrate its innovative solutions into its advanced visualization products, further expanding its capabilities in medical imaging analysis and digital solutions to provide patients with smarter, more personalized, and differentiated healthcare solutions.

Focus on Artificial Intelligence

GE Healthcare CEO Peter Arduini said in an interview that many of the company's current R&D priorities are still more focused on artificial intelligence. He pointed outAI plays an important role in medical imaging equipment such as MRI, CT, and ultrasound, and customers are willing to pay higher prices for these advanced products.And added that GE Healthcare's R&D investment over the past year has already led to the creation of 40 new products, which will have a "flywheel effect" on the business.

In addition, Arduini stated: "The last part we are building and will develop in the next few years is so-called multimodal data integration.——Your genomic information, pathological information, and imaging data. All this data is aggregated in one pane, and there is a specific algorithm or foundational model that can help interpret the data, assisting clinicians in guiding patients in the right direction."

GE Healthcare Imaging Layout

GE Healthcare Imaging is currently the largest of the company's four major businesses, with revenue of approximately $10.6 billion in the 2023 fiscal year. The company has developed many software tools for medical imaging management and analysis, including Picture Archiving and Communication Systems (PACS), Radiology Information Systems (RIS), and various other tools.Products cover CT, MR, molecular imaging, X-ray, women's health, image-guided therapy, enterprise imaging software, services, and digital solutions.etc.

Among them,Imaging business achieved revenue of $10.581 billion, accounting for 54% of the company's total revenue; Ultrasound business achieved revenue of $3.457 billion, accounting for 17.7% of the company's total revenue.

As an ultrasound leaderThe absolute leader in the field,GE Healthcare has established a presence in high-end, mid-range, and low-end markets, and is a leader in application markets such as obstetrics, radiology, and cardiology.Currently, GE Healthcare's ultrasound product portfolio has expanded from the diagnostic field to the surgical visualization field, laying a solid foundation for its latest target, the AI ultrasound track.

The 5th Generation Ultrasound Product: Fortis Series

In early August 2021, GE Healthcare officially launched the Fortis series, the fifth-generation ultrasound product family. The new generation of ultrasound technology has undergone a transformation from hardware beamforming to software beamforming, and from circuit boards + code to GPU + software,告别了四十余年硬件波束形成器平台，实现了技术上的本质性突破.

Fortis Series Ultrasound Products

It is reported that based on the cSound™ soft beam imaging platform, the Fortis series has successfully broken through the technical ceiling of ultrasound engineering, bringing outstanding features such as full-field pixel focusing, high frame rate, high real information content, and AI artificial intelligence to imaging diagnostics.

High-End Obstetrics and Gynecology Ultrasound Voluson

March 2022,GE Healthcare announced that its high-end obstetrics and gynecology ultrasound products, Voluson™ E8 and Voluson™ E10 (hereinafter referred to as the China-produced Gold Standard E8 and China-produced Gold Standard E10), have received registration approval from the Jiangsu Provincial Medical Products Administration, and have officially gone into production and launched in the market.

It is reported that the domestically produced GE Healthcare's Golden Standard E8 and Golden Standard E10 obstetrics and gynecology ultrasound systems, which have received market approval this time, are ultra-high-end products in the field of professional obstetrics and gynecology ultrasound.GE Healthcare Wuxi Base: The Latest Achievements in Comprehensive Innovation of Chinese Production.

Professional Obstetrics and Gynecology Ultrasound Voluson™ E10 / Voluson™ E8

According to the introduction, the domestically produced GoldSeal E8 and E10 models maintain the same level of leadership and quality standards as GE Healthcare’s global offerings. In addition to featuring GE Healthcare's latest ultrasound probes and imaging technologies, such as the innovative third-generation curved convex array matrix probe eM6C G3, the second-generation fetal heart quantitative analysis FetalHQ 2.0, and micro-perfusion volume (quantitative) imaging Slowflow3D, these models also integrate a variety of intelligent applications specifically designed to meet the clinical needs of obstetric and gynecological ultrasound in China, assisting Chinese hospitals in enhancing diagnostic efficiency and overall ultrasound diagnosis and treatment standards.

New Generation CyberKnife

In April this year, GE Healthcare announced the launch of Caption AI, an artificial intelligence (AI)-driven software, for its dual-headed, handheld, wireless, point-of-care ultrasound imaging system, Vscan Air SL.

This imaging system officially launched in August 2023, allowing clinicians to efficiently capture and view clear images of the heart and blood vessels at the patient’s bedside, thereby accelerating diagnostic and treatment decisions. With the addition of Caption AI,Clinicians using the Vscan Air SL handheld ultrasound will be able to obtain real-time, step-by-step guidance to capture diagnostic-quality images and automatic ejection fraction estimates, thereby assisting in clinical decision-making in cardiac settings.

According to GrandView Research, the global ultrasound device market size was $7.9 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2022 to 2030.GE Healthcare, as the absolute leader in this field, has consistently ranked first globally in revenue, with a market share of 29%.

WorthIt is worth noting that the competitive landscape of the ultrasound market is basically mature, with little change in recent years. The acquisition of IUG's clinical AI software business will not only further consolidate its market position but also achieve "self-transcendence." In this regard, Device China will continue to follow up.

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