South Korean medical AI company Lunit has announced its decision to establish a wholly-owned subsidiary in Europe.

According to a press release, Lunit Europe Holdings will be based in Amsterdam in the Netherlands and will begin local staff recruitment shortly. 

WHY IT MATTERS

Although Lunit had a branch office which previously managed its European business, its subsidiary in the continent will allow it to plan for the expansion of its sales network and fortify existing partnerships there. 

According to data from Statista, the European medical device market is expected to be worth $136 billion this year. Its biggest segment is cardiology devices with a projected market volume of $18.7 billion. By 2027, the market is expected to generate $162.8 billion in revenue, growing at a 4.58% CAGR. 

With its European subsidiary, Lunit also seeks to expedite its business development across the European Union and the European Free Trade Association.

THE LARGER TREND

It was in 2019 and 2020 Lunit obtained CE marks for two of its popular AI radiology solutions – Lunit INSIGHT CXR and INSIGHT MMG, respectively. The company has since aggressively expanded its presence across the European market via partnerships and major clinical studies validating the effectiveness of its AI. 

Late last year, it also received a CE marking under Europe's latest Medical Device Regulation. 

ON THE RECORD

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