Medical AI firms raise cash for Chinese health care revolution
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Shukun Beijing Network Technology Co. Ltd., which provides AI-assisted diagnostic tools, applied for a Hong Kong IPO on Wednesday. It’s the fourth medical AI firm to file this year.
- Shukun’s AI can model a patient’s organs based on a CT scan, giving doctors a detailed 3D representation that enables more accurate examination and diagnosis.
- The company has raised over 2 billion yuan ($309 million) since 2017 and is used in 80 of China’s top 100 hospitals.
Also relevant: In June, China’s State Council published a memo urging the development of “smart hospitals” that integrate advanced technology, as demand for online medical care surged due to the pandemic. The country’s aging population means advanced health care will only become more necessary.
- Shukun’s revenue skyrocketed 681% year-on-year to over $8 million in the first half of 2021, but losses also doubled to $13.5 million.
- There’s plenty of room to grow: Shukun’s prospectus says China’s AI medical imaging could grow from $154.8 million in 2020 to over $6.8 billion in 2025.
However: Shukun also acknowledged the risk of “complex and evolving laws and regulations regarding privacy and data protection,” which prompted medical data firm LinkDoc to withdraw its U.S. IPO in July.
