Artificial intelligence biotech company Volpara Health (ASX: VHT) has started the year by raking in the money (is there a better way?), and shareholders are here for it.
Volpara has signed five contracts worth $11.34 million (NZ$12.3 million) combined. The five-year contracts include some leading US healthcare companies, including Bon Secours Mercy Health, Northside Hospital, Adventist Health, Duly Health and Care, and Onsite Women’s Health. Plus, it has also renewed its contract with Centura Health, valued at $1.3 million. It is a 19-hospital health system serving patients across Colorado and western Kansas.
There is a dire need for breast cancer-related software, and Volpara is filling the gap. In 2020, over two million women globally were diagnosed with breast cancer. It is the world’s most prevalent form of cancer. Clearly, timely detection and action are necessary, which is what the Company provides.
Volpara Group CEO, Teri Thomas, shared, “Volpara is delighted to partner with such large and well-respected organisations to save even more families from cancer. The growing demand for Volpara’s breast software, which brings together cancer risk assessment, density scoring, image quality optimization, and patient tracking and reporting, reflects an industry transformation to more data-driven, personalized, high-quality care.”
Volpara is a software tech company, which uses AI for the early detection of breast cancer. Present in over 2,000 facilities worldwide, the Company’s tech is used to conduct over three million cancer risk assessments each year. Pointing to the staffing shortages in the healthcare industry, Volpara believes that its software can streamline operations and provide insights to bolster care.
The Company will be offering three of its patented technologies to the five hospitals: Volpara Patient Hub, Volpara Risk Pathways and Volpara Scorecard. Except for Bon Secours (which is only receiving the Risk Pathways) and Onsite Women’s Health (receiving the Volpara Analytics and Scorecard software), the companies will get all three software.
The Volpara Patient Hub focuses on mammography (medical imaging) reporting and patient communication. Risk Pathways is a result of Volpara’s acquisition of cancer risk assessment company CRA health. As the name suggests, the software helps identify and assist high-risk patients. Scorecard allows your healthcare team access to insights for early detection. And finally, the Analytics software—as the name suggests—works kind of like Google Analytics, with its dashboard, statistics and data.
These contracts are a huge win for Thomas, who only became CEO in April last year. Since then, for H1 FY23, Volpara has reported a revenue increase of over 37 per cent to $15.6 million.
She added, “These new contracts are also representative of the “elephant” commercial opportunities Volpara is prioritizing to drive recurring revenue growth. The upgrades and renewals reflect the success providers rely on Volpara to deliver.”
The different software will be installed within the next six to twelve months. All contracts are expected to contribute to revenue growth from FY24 onwards, and they are all for an initial five-year subscription term with annual payments. Each client can terminate the contract after three years, except for Bon Secours Mercy Health.
If this is how it has kicked off 2023, it will be interesting to see what Volpara has in store for the rest of the year.
Alinda is a Business Reporter for The Sentiment
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