The Volpara Health Technologies Ltd (ASX: VHT) share price is rising after revealing a partnership with a leading genetics company, Invitae Corporation.
Volpara’s genetics partnership
The integrated breast care platform business has entered into a collaboration agreement with Invitae, which is a leader in medical genetics, to bring Invitae’s genetic testing services to Volpara’s customers in the US.
Volpara’s customers in the US will get access to Invitae’s comprehensive genetic testing services within Volpara’s software workflow.
The ASX company plans to create a fully integrated ordering process for Invitae genetic testing services within Volpara’s suite of products.
As part of the partnership agreement with Invitae, Volpara has the potential to offer increased value to mutual customers upon successful clinical implementation.
Risk assessment is also required by insurance companies in the US to justify reimbursement for additional testing. Along with supplemental screening, such as ultrasound and MRI, genetic testing assists in earlier cancer detection and is critical in reducing treatment costs and increasing the chances of survival.
Management comments
Volpara CEO Ralph Highnam said: “Volpara continues to be proud of its major role in driving the adoption of personalised breast screening in the United States. Our relationship with Invitae adds a prominent partner to our breast health platform and will allow us to offer increased value to our customers by ensuring that the right patients get seamless access to the right genetics testing at the right time.”
Summary thoughts on Volpara and the share price
The market clearly likes this partnership. I think that it’s a good move – Volpara being able to offer an advanced service for patients and medical professional is integral for better patient care as well as increasing average revenue per user (ARPU) over time.
I believe that Volpara seems like it has a very good future. The growth of ARPU looks particularly promising as existing customers are put onto better products and it can offer more than one of its products to them. Remember, new revenue comes at an extremely high gross profit margin.
It’s definitely one of the ASX growth shares I’ve got my eyes on.
