Israel-based medical imaging company Nanox secured additional funding, this time $59 million from global investors, to wrap up an investment that started in November 2019, the company said Tuesday.
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The company is supported by strategic investors SK Telecom, Foxconn, Yozma Korea, Industrial Alliance and additional private investors. The new financing brings the total investment to nearly $110 million, the company said in a written statement.
The funding will be used to support the rollout of its imaging system (called Nanox.ARC) worldwide, the company said. The system has been pre-sold in 13 countries, representing more than $300 million in service fees for the next three years, according to the company.
Although Nanox started in 2012, the company is attracting significant funds in a short period of time, Ran Poliakine, CEO of Nanox, told Crunchbase News in June. The SK investment came less than six months after Nanox’s $26 million venture round, led by Taiwan-based technology manufacturing giant Foxconn Technology Group.
Nanox was formed by a group of former Sony engineers focused on nanotechnology, intending to utilize that technology to solve the problem of early detection imaging in health care, Poliakine said.
It aims to “democratize health care” by offering a “digital camera for the full body” among its range of medical imaging services that operate on a pay-per-scan business model and include online radiology diagnostics and artificial intelligence decision assistive algorithms implementation, he said.
“We are like the LED of X-rays, and our technology is utilized on a small chip, so we can replace the hot cathode method invented 125 years ago,” he said. “What we have done is implement nanotechnology in an effectively controlled X-ray stream, designated to exact the procedure as well as make it low cost and accessible.”
A traditional scan in the United States costs an average of $3,000, while globally, that average is $300, Poliakine said. Nanox is charging $30 per scan.
“We are not trying to be altruistic, but the cost of technology has jumped so much that we put in that price point to increase accessibility,” he added. “It is important to push forward health care in a more uniform way and to break down the walls between rich and poor countries.”
Earlier this year, SK Telecom decided to deploy 2,500 scanners to enable this service, while Nanox plans to establish a wholly owned Korean subsidiary to scale up production on the Nanox X-ray source semiconductor in order to get 15,000 units out to physicians by next year, Poliakine said.
Illustration: Dom Guzman