"ONCOSOFT aims to conquer cancer throughsoftware. In the future, we would like to expand the target of products andservices developed by the company from radiation treatment hospitals to cancerpatients. We will provide new technologies and services that can resolve patients'questions and realize customized cancer treatment through the government'sMyData business."
Oncosoft CEO Jinsung Kim (Associate Professor,Department of Radiation Oncology, Yonsei University College of Medicine)founded Oncosoft in 2019 to develop AI-based software (SW) for safe and preciseradiation therapy. ONCOSOFT is expanding its medical AI business model bytransforming from a company that develops AI software for the entire radiationtherapy cycle to a company that develops AI solutions for the diagnosis,treatment, and management of cancer.
"Currently, there are more than 100radiation treatment centers in Korea. Although the clinical level of domesticradiotherapy has increased, I was saddened by the reality of SW forradiotherapy, which still relies on 100% overseas imports." "Inparticular, I felt limited in using foreign products that cannot be changed tosuit user convenience, so I founded OncoSoft," he said.
Hit News met with CEO Kim Jin-sung to learnmore about the company's AI software competitiveness and future business goals.
11 hospitals have purchased 'OncoStudio'...30 hospitals have used the demo version.
Two-track business model... Differentiated BMfrom existing medical AI companies
In February last year, Oncosoft obtained a Class2 medical device license for 'OncoStudio' from the Ministry of Food and DrugSafety. OncoStudio is an AI-based contouring SW for radiation therapy.
"In order for cancer patients to receiveradiation therapy, it is necessary to take a computed tomography (CT) scan ofthe patient's tumor and accurately draw the tumor area and normal organs(contouring). "If the radiation is irradiated incorrectly, it can affectnormal tissues instead of the tumor, and if the radiation dose is excessive, itcan cause side effects such as a hole in the esophagus or damage to thespine," said Kim.
"In the past, contouring was done manuallyby medical staff, which took a long time, and the results varied greatlydepending on the skill level of the medical staff," he said. "Toovercome this, we developed OncoStudio, an AI-based automatic contouring SW."To overcome this, we developed OncoStudio, an AI-based automaticcontouring SW, which enables patients to receive precise radiation treatmentwithin a short time.
Currently, OncoStudio has been sold to 11hospitals in Korea, including Samsung Medical Center, Sinchon SeveranceHospital, and Seoul National University Hospital, and is in clinical use, and30 hospitals in Korea are using the OncoStudio demo version. OncoStudio has atwo-track (pipeline + platform) business model (BM) that is differentiated fromexisting medical AI companies.
"The pipeline business model is AI SWdeveloped for medical staff specializing in radiation oncology, includingOncoStudio (AI contouring SW), OncoPlan (AI dose calculation SW), andOncoPalette (a clinician decision support system (CDSS) specialized for cancerpatients)," said Kim. "The platform business model is apatient-centered medical information support platform (product name MeTwin)that can generate profits through interactions between users (medical staff andcancer patients)."
According to the company, its business model isdifferentiated from existing medical AI companies by developing AI softwarecentered on treatment rather than diagnosis, and including patients instead ofjust medical staff.
What is the feedback from hospitals usingOncoStudio? "We are receiving feedback from hospital officials that theperformance is similar to overseas products, but the after-sales service (A/S)is good and responsive compared to overseas products," said Kim. "Weare also receiving feedback that it can be used as a research AI model tailoredto each hospital environment because it includes AI learning functions thatcompetitors' products do not have."
Established a corporate office in Dallas, U.S.,last month to accelerate North American expansion
Plans to raise $15 billion in Series B funding,with $2 billion in revenue targeted this year
Last month, ONCOSOFT established a U.S.subsidiary in Dallas, Texas, USA. "In addition to the existing SWdevelopment form of OncoStudio, a cloud-based version of OncoStudio (productname Contour Kit) is currently being developed and clinical verification isunderway," said Kim. "We are jointly developing OncoFlow with anumber of university hospitals in the United States to adapt to the localhospital environment. We have established a legal entity in the U.S. to provideaccess to local hospitals for product co-development."
The company plans to enter the U.S. and Japanmarkets in 2024. "The first step in entering the U.S. and Japanese marketsis approval of the respective country's approvals," he said. "Thecompany's licensing team is preparing to obtain the U.S. Food and DrugAdministration (FDA) 510(k) and Japan's Pharmaceuticals and Medical DevicesAgency (PMDA) certification for OncoStudio."
With sales of about 830 million won last year,Oncosoft aims to reach 2 billion won in sales this year. "We are workingon creating an organizational culture to communicate with employees."Every month, we hold all-hands meetings to share the company's managementstatus, new business plans, etc. with employees." "This helps themunderstand the direction the company is pursuing. We also support employees insetting work goals and directions," said Mr. Lee.
Meanwhile, Oncosoft, which received a Series Ainvestment of 3.5 billion won from venture capitalists (VCs) last year, iscurrently seeking a Series B investment of 15 billion won. The company plans touse the new investment to expand its workforce and accelerate the developmentof new services.
