Volpara Health Technologies Ltd (ASX: VHT) has announced a new agreement which sent the share price up around 3%.
Volpara describes itself as a ‘MedTech Software as a Service’ company that was founded in 2009 on research conducted at Oxford University. Its software is used for screening clinics to provide feedback on breast density, compression, dose and quality. Its VolparaEnterprise business provides role-specific dashboards and wide-ranging benchmarking analytics to help clinics manage their business more efficiently.
Why The Volpara Share Price Is 3% Higher
Volpara has entered into a full distribution agreement with ScreenPoint Medical BV, where Volpara will distribute the ScreenPoint Transpara product to breast imaging clinics in Australia, New Zealand, the US and parts of Asia through its established direct sales force.
Volpara described Transpara as the next-generation of computer-aided detection software designed to help radiologists read screening mammograms by marking specific areas of the breast image as likely being cancer or not.
The idea behind the agreement is that the combined solutions can optimise the early detection of breast cancer, thereby reducing radiologist liability and risk, and cut screening costs by potentially eliminating a reader in systems that deploy double-reading mammography.
The five year agreement is a joint venture style revenue sharing arrangement which is non-exclusive with automatic renewal rights.
Volpara said there will be a parallel launch at the AHRA Medical Image Management conference in Denver and the Singapore BreastDay Conference.
The company said that following the acquisition of MRS Systems and today’s agreement, Volpara’s direct sales force can now sell a full set of products for up to US$10 of average revenue per user (ARPU) from breast imaging clinics.
Volpara CEO Dr Ralph Highnam said: “Critically, it helps expand the software toolkit our sales people can sell and increases potential ARPU still further beyond the Volpara and MRS Products.
Based on the clinical papers to date, we’re sure that Transpara is world leading and will be very high successful commercially, especially when it achieves its US clearance from the FDA for 3D breast images.”
This seems like another tick for Volpara’s growth strategy, it is achieving impressive growth and could be one to watch. The question is whether today’s price is a fair price, which I just don’t know. Low interest rates make this a very interesting and difficult investing environment.
Other growth shares to consider are the rapidly growing businesses in the free report below.
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