Healcerion said that it is about to become the first local imaging medical device company to enter the U.S. defense market.

Healcerion CEO Ryu Jeong-won shows Sonon, a wireless portable ultrasound system.

According to the company, Healcerion introduced the world's first portable smart ultrasound diagnostics through its partner Biodigit at the Association of the United States Army 2019 conference, the world's largest defense expo, in October, drawing the attention of defense-related companies and research institutes.

Most recently, the company announced that it signed a letter of engagement (LOE) with the U.S. Military Academy West Point for the joint research of portable wireless ultrasound diagnostics on Tuesday.

The LOE is a preliminary agreement before the Cooperative Research and Development Agreement (CRADA), which is a joint research and development accord between government agencies and private companies.

"If the company completes its CRADA agreement, it will be able to supply its products in the U.S. annual department of defense procurement market, which is estimated around $290 billion a year," Healcerion said.

In line with its effort to enter the U.S. Department of Defense (DoD) procurement market, the company completed its registration for the Distribution and Pricing Agreement, which is an essential accord for the procurement of the U.S. Department of Defense and government agencies, in October.

It is also pursuing registration with the General Services Administration and, if registered, expects to be eligible to participate in the Veterans Affair's primary care system procurement market.

"As early as next year, the company expects to reach the sales of more than 10 billion won ($8.5 million)," Healcerion CEO Ryu Jeong-won said. "If we can enter the U.S. DoD procurement market smoothly, not only will it generate revenues but also help us take a step forward to become a digital healthcare platform company that combines artificial intelligence with medical imaging."

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