Lumito is working on the digital tissue diagnostics of tomorrow, developing an advanced medical device comprised of a scanner and staining reagents. Our product is both revolutionary and attractive and will facilitate most of the tasks that are the most time-consuming for pathologists – the examination of ambiguous tissue samples. Our technology has several strengths and meets the market’s need for digitalized analysis processes as well as the pathologists’ preference for a highly consistent method providing reliable analytical results.
Last year, the global tissue diagnostics market was estimated at SEK 28,7 billion, and it shows a steady growth of 6.5 percent, driven by the rising average age in the population and novel, personalized treatment methods. The growth of digital tissue diagnostics, the sub-market in which Lumito operates, shows an even stronger annual growth of 13-20 percent.
We are working to finalize the product that the market demands. Our aim is to launch a product to market as soon as possible, with the right features that meet actual requirements and needs. We have identified additional areas in which our technology could make a difference, and we are assessing those areas where our technology would add the most value in order to implement additional functions. That way, we are creating a truly competitive product.
In early April, the company participated in the international conference UPCONline 2021 – a world forum for the latest in upconversion nanoparticles. We presented the technology and the development of our product that will be used for immunohistochemistry in laboratories.
The annual general meeting re-elected Stefan Andersson-Engels, Ulf Bladin, Roland Andersson and Urban Widén as members of the board. Urban Widén was newly elected as Chairman of the Board. The resolution creates a clear continuity in the management of the Company.
In June, we obtained confirmation from an independent certification body that we have the processes in place to qualify for ISO 13485 certification. Hence, we are well prepared for the next step towards achieving certification, in which we will demonstrate that we follow the procedures in practice.
An additional grant strengthened our patent portfolio, this time in India. This concerns the patent previously granted in Europe, South Korea, Australia, China, South Africa, the United States, and Japan, which describes the use of pulsed light to improve the efficiency of the technology and reduce the imaging time.
We have engaged with additional international expertise, with a background in fields such as digital pathology and artificial intelligence. Our expert advisors are working, as previously mentioned, with the verification of our tissue images, but now we also have people in place to identify those applications where our technology can be of most benefit and the commercial potential is greatest.
In parallel, we have been working to identify reference customers, and I have conducted discussions with a number of global players and potential distribution partners that can market our product. The companies operate in environments that do business with end customers in segments where Lumito could become an attractive partner. The dialogues with the companies are ongoing, and the objective is to find one or several distribution and/or development partners. I sense great interest in our company in the context of these discussions, and it is gratifying that more people are waking up to our potential.
During the quarter, I have reviewed the plan moving forward together with the management and the Board and established that the company’s cash flow follows the business plan we instituted. Nevertheless, we are continuously assessing our future capital needs and possible ways of raising capital for our development company.
I believe that Lumito will have a great potential on the markets worldwide when we present our unique technology: a more competitive and better product, which meets the needs of the market and the pathologists and also has the potential to offer more functions through the development of additional applications. In addition, the Company is made more attractive on the global market by the flexible and scalable business model, with several ingredients in the product offering and recurring revenues.
Work has been going on all summer in the office and in the laboratory. Now, most of us are back after vacation, brimful of energy, and together with my colleagues, I look forward to an intense autumn.
Lund August 2021
Mattias Lundin CEO
Lumito AB (publ)