[Edaily Reporter Kim Seung-kwon ] Medical artificial intelligence (AI) company Coreline Soft Co., Ltd.(384470)announced on the 7th that it has secured a contract for a lung cancer screening project in Lostau, Germany, through Canon Medical Systems GmbH (Canon).

This is a long-term contract that includes the initial supply and implementation of software, as well as 10 years of technical and operational support. Coreline Soft Co., Ltd.’s chest CT AI solution will be integrated into Germany’s low-dose CT (LDCT)-based lung cancer screening system.

This project involves Coreline Soft Co., Ltd.’s solution being supplied as part of Canon’s successful bid for the lung cancer screening contract in the Lostau region of Germany. Coreline Soft Co., Ltd. will supply the software to Canon and handle installation, training, and long-term technical support.

The products to be supplied include the lung cancer screening AI solution “AVIEW LCS Plus,” the chronic obstructive pulmonary disease (COPD) analysis solution “AVIEW COPD,” and the screening operations platform “AVIEW HUB.”

AVIEW LCS Plus provides information on pulmonary nodules, emphysema, and coronary artery calcification (CAC), while AVIEW COPD supports quantitative analysis of emphysema and automatic lesion detection. AVIEW HUB links images and AI analysis results across reading institutions and provides tracking and quality control functions.

Since April of this year, Germany has been implementing low-dose CT lung cancer screening for high-risk smokers and former smokers under the statutory health insurance (GKV) system. According to the company, this has led to growing demand for the establishment of screening workflows that integrate everything from imaging to AI analysis, interpretation, and follow-up management.

Coreline Soft Co., Ltd.’s business in Germany is also expanding. While the company signed 10 new hospital contracts last year, it has already secured more than 44 new contracts from January through May of this year, with total contracts and implementations for the first half of the year reaching approximately 60.

Kim Jin-guk, CEO of Coreline Soft Co., Ltd., stated, “Germany is a crucial market where actual hospital operational systems are being established following the institutionalization of lung cancer screening,” adding, “We will continue to build an operational AI infrastructure that can be repeatedly utilized in the German and European lung cancer screening markets.”

Meanwhile, Coreline Soft Co., Ltd. is an AI medical imaging solutions company jointly founded in September 2012 by three co-founders from KAIST, who are part of the first generation of medical imaging researchers in South Korea. The company was listed on the KOSDAQ market in 2023 under a technology exception listing.

Medical imaging is used for disease diagnosis and is categorized into CT, MRI, X-ray, ultrasound, and mammography. Coreline Soft Co., Ltd. specializes in image analysis using CT. Its business model is divided into a CapEx model, in which revenue is recognized in a single payment when the company’s AI medical imaging diagnostic software is deployed at various hospitals and government agencies, and an annual subscription model, in which subscription fees are collected annually.

The CapEx model predominates in the domestic and European markets, while monthly or annual subscription business models are the norm in the U.S. and Japanese markets. Recently, qualitative changes in revenue structure have emerged as a key indicator, taking precedence over short-term revenue figures.