Volpara cracks its biggest deal yet with US$2.15m partnership
Health & Biotech
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Healthcare Technology Company Volpara (ASX:VHT) has entered a five-year US$2.15 million contract with a leading US imaging provider.
The deal represents Volpara’s largest to date in terms of annual recurring revenue (ARR). It will bring in US$430K ARR.
The company will install its integrated breast screening platform across the customer’s extensive network imaging centres located across 11 states, to provide a standardised patient tracking platform that incorporates Volpara Risk and Scorecard.
Volpara Risk and Scorecard, which underscores the value of the Volpara Breast Health Platform, is the most clinically validated density software to measure breast density considered a risk factor for cancer.
The technology will enable VPT’s customer to accurately triage their patients and provide a personalised breast cancer screening pathway. Under the agreement the Volpara Patient Hub will replace multiple legacy patient tracking systems.
Volpara CEO Dr Ralph Highnam said securing the agreement demonstrates the company’s ability to rapidly scale its technology and deliver on its accelerated growth strategy. He said the deal will provide Volpara with a significant uplift in revenue.
“We are experiencing tremendous momentum for our platform in the market as we bring together best-of-breed patient tracking, risk and density scoring to allow our customers to provide their patients with the individualised care they deserve,” Highnam said.
“Our platform provides us, and our customers with a significant advantage and is enabling us to seek our opportunities that did not exist even a couple of years ago.”
As global interest in personalised medicine grows, Volpara is increasing its focus on risk and genetics.
Earlier this year Volpara acquired CRA Health, a breast cancer risk assessment company spin-off from Massachusetts General Hospital, which is a Harvard Medical School teaching hospital.
Collaborations with Ambry Genetics and Invitae Corporation are also key components of Volpara’s strategy to focus on risk and genetics.
The company has also been building out a strong market position in the US$3.75 billion lung cancer screening technology with strategic partnerships to complement its core integrated breast care platform.
Volpara delivered a record revenue of just under NZ$20m for FY21 with total revenue of NZ$19.7m, a 57% increase compared to the previous corresponding period (pcp).
The company has also got off to a good start by delivering a solid 1Q FY22 cashflow report.
One of the key metrics in the result was that it recorded cash receipts of NZ$6.4m, a 30% increase on pcp.
Morgans has an Add recommendation on the Volpara stock, with a 12-month price target of $1.87 versus the current price of $1.16.