One thing leads to another: After collaborating with the developer of artificial intelligence-powered medical imaging programs for just over two years, Bayer has sealed the deal to acquire Blackford Analysis.
The financial terms of the transaction, expected to be made official later this year, were not disclosed. In its announcement, Bayer said it plans to allow Blackford to operate at arms’ length as a relatively independent outfit while giving the drugmaker access to a more solid footprint in digital health and imaging.
“Adding Blackford and its AI technology to our radiology portfolio secures Bayer an excellent position in the fastest growing segment within the overall global radiology industry,” said Stefan Oelrich, president of Bayer’s pharmaceutical division.
Bayer previously inked a development and license agreement with the Scotland-based Blackford in late 2020, after backing the company through grants and its digital health incubator program.
Blackford has aimed to deliver a one-stop shop for imaging AI, hosting more than 80 offerings from 30 partner vendors; Bayer said it aims to “preserve the company’s entrepreneurial culture” after the acquisition has concluded.
According to the companies, their partnership laid the foundation for Bayer’s Calantic Digital Solutions platform, an AI marketplace for programs to analyze CT and MRI scans that launched last June. Organized by body region and diagnostic procedure, it houses algorithms such as vendor-neutral programs for patient reviews, as well as apps that automatically triage serious cases and flag scans of suspicious lesions.
Bayer describes the global AI-powered medical imaging field as a $400 million market that is expected to grow by more than 26% year-over-year, and reach about $1.36 billion by 2026—as an aging population continues to drive demand for medical imaging while trained radiologists remain in comparatively short supply.