Business Model

AUROTECH ultrasound AS develops digital signal-processing ultrasound systems and offers high-end digital ultrasound platforms to OEM (Original Equipment Manufacturer) or license partners. Our customers are typically medtech companies whose primary product is not ultrasound, but where ultrasound technology creates a new product or expands on the already existing product line. Other customers can also be ultrasound companies who need our platform to speed up time to market or enter new segments. 

In 2009, after finishing the first version of the platform, the company decided to speed up its marketing activities and development capacity. The target for the next 5 years is to sell MANUS to more than three new customers each year within the medtech industry and to establish cooperation with at least one large ultrasound company. Each medtech customer will typically start out with 50-100 scanners per year and we expect some to reach more than 500. On average, we estimate 200-300 scanners per year for each customer after an introduction phase. For the ultrasound area it is harder to estimate quantities, but we expect larger ultrasound companies to establish a licensing agreement and produce the scanner themselves. The company expects to grow rapidly during the coming years, and the target is to become 20-25 engineers within 2-3 years.

The company’s business model for new customers typically has 3 stages:

Stage 1: Feasibility study (1-2 months)
Stage 2: Application adaption (3-6 months)
Stage 3: Distribution of OEM “black box” or licensed production

AUROTECH’s is an ultrasound development company and focuses on further improvements and adaption of new customers to MANUS. All production is thus outsourced to long-term partners under careful supervision by AUROTECH’s production manager.

The company’s management and board of directors are constantly evaluating the need for increased capacities in all areas, but have always built the company patiently, focusing on long-term goals. AUROTECH has so far survived 20 years in a tough competitive environment, and will not risk compromising that achievement. The further development of the company is discussed within the company and will also be discussed with potential new investors.