Cardiff-based Intelligent Ultrasound Group has seen its share price surge after signing its first long-term licence and co-development agreement for its AI software with one of the world's leading ultrasound equipment manufacturers
The long-term agreement will enable the integration of Intelligent Ultrasound's real-time image analysis software onto a range of specialty specific ultrasound systems marketed in the global healthcare market.
Co-development work with the undisclosed OEM partner will commence immediately, with initial royalty per unit revenues expected during 2021 following regulatory approval.
The terms of the deal have not see disclosed.
Following the announcement the share price of the Alternative Investment Market listed firm - a Cardiff University spinout venture - surged by more than 170% in early trading.
Stuart Gall, CEO of Intelligent Ultrasound (previous known Medaphor) said: "This is a milestone agreement for the Group and we are delighted to have signed our first long-term agreement with one of the world's leading ultrasound companies.
"We believe that ScanNav is one of the world's first AI software products to provide real-time image analysis and guidance to sonographers during an ultrasound scan.
We expect this to be the first of many agreements for our range of AI based image analysis software."
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The group's AI-based software aims to boost scanning quality and to streamline sonographer workflow in medical ultrasound specialties, such as anaesthesiology, obstetrics, gynaecology, radiology and primary care medicine.
On the back of the latest deal, broker Cenkos reiterated its share buy recommendation, saying: "This agreement provides strong market validation of IU’s developing AI software portfolio and, once established, we believe this agreement has the potential to significantly transform the financial profile of the company."