Medicsight eyes £30m London IPO

The medical imaging software company Medicsight, whose products are at the forefront of the fight against lung and colon cancer, plans to raise £30m when it floats on the London Stock Exchange in June.

The company says its computer aided detection software helps radiologists detect and diagnose abnormalities at the earliest possible stage and to monitor them accurately. Its products include the ColonCAD and LungCAD, which are used for the analysis of Computed Tomography (CT) scans, to aid the early detection of colorectal and lung cancer.

About 1.3 million lung cancer cases are diagnosed worldwide each year, making it the most common form of cancer, accounting for over 17 per cent of all cancer deaths. Colon cancer is the second most common cancer and causes 655,000 deaths each year. However, according to the World Health Organisation, 90 per cent of cases could be cured on early detection.

David Sumner, the chief executive of Medicsight, said the placing on AIM would significantly enhance the company's growth strategy over the next three years. "It will help raise our profile with existing and potential partners," he said.

Radiologists expect CT procedures to increase by 35 per cent over the next five years. Medicsight's strategy is to partner with leading 3D visualisation equipment companies to provide integrated CAD products, and it has already signed a number of distribution agreements.

It is in talks with a number of other imaging hardware companies and hopes to finalise agreements in Japan and Europe in the next couple of months.

The company has been focused on developing technology to use alongside Multi Detector Computed Tomography (MDCT) scanners, which are recognised as reliable, safe and non-invasive for the detection of colon and lung cancer.

The company has established offices in China and Japan, and hopes to grow through research, development and acquisitions.