The ASX healthcare share Volpara Health Technologies Ltd (ASX: VHT) has revealed an exciting contract. The Volpara share price has jumped 5%.
Volpara is a technology business that is primarily involved in helping identifying and protecting against cancer as early as possible.
Volpara’s great new contract
It revealed that it had signed a five-year contract with Banner Health, one of the largest non-profit hospital systems in the US. Banner Health operates 30 hospitals, including three academic medical centres.
This contract represents an additional US$1.25 million of total contract value (TACV).
The contract expansion includes upgrades and new installations of Volpara’s patient hub, analytics and risk pathways software across the Banner Health network.
Volpara said that the installation is expected to be completed within the next nine months. It includes annual payments is expected to “contribute to revenue growth in FY24”.
Management commentary
The Volpara CEO Teri Thomas said:
We are proud to expand our relationship with Banner Health and extend Volpara software to all their locations. This standardisation of care and implementation of new capabilities will help deliver more personalised care, find more cancers and identify high risk patients sooner so they can receive recommended interventions. We look forward to working with Banner Health to help save more families from cancer.
Thoughts on this for the Volpara share price
Clearly it’s a great step forward. To be recognised and chosen by such a large institution is very encouraging thing just by itself. But it could also be the start of being picked by more large US healthcare providers.
With such a strong gross profit margin, of over 90%, any revenue growth is highly helpful to the financials. This is a good boost to the company’s financial profile.
I think the business could be one of the best performing ASX shares over the rest of this decade, particularly if it’s able to make some progress with its lung cancer screening segment.
I believe it’s one of the most promising ASX growth shares to buy today.
