As medical technology continues to advance, digital imaging is now a staple for image interpretation for cancer diagnosis, especially in finding potential abnormalities that aren’t visible to the eyes as well as evaluating the extent of the disease. Breast cancer software company Volpara (ASX: VHT) is among those that offers what it takes to meet the demands. Its AI quality software Volpara Analytics has been engaged by BreastScreen Victoria to support diagnostic processes of approximately 37% of all breast cancers that it manages in Victoria.
Volpara and BreastScreen Victoria have signed a five-year Software as a Service (SaaS) contract valued at $1.4 million in Total Contract Value (TCV). Aiming to optimise mammography operations at BreastScreen Victoria, the Volpara Analytics software will be deployed to assess every mammogram image for appropriate positioning, compression, and radiation dose. The software provides quantitative measures and guidance to technologists for optimal positioning and compression techniques, leading to a higher-quality screening programme and improved personalised care for women.
Expressing enthusiasm about the partnership, Teri Thomas, Volpara Group CEO and Managing Director commented, “We are thrilled to have BreastScreen Victoria join the ranks of Australian screening programmes and other healthcare providers already using Volpara’s AI-powered software.”
Thomas also mentioned that Australia has achieved one of the highest five-year breast cancer survival rates globally, standing at an impressive 91%. Therefore programs like BreastScreen Victoria deserve recognition for their dedication to enhancing quality and achieving early detection through investments in advanced technologies.
Installation of the Volpara software at BreastScreen Victoria is expected to be completed within 3 to 6 months. The contract includes annual payments and is anticipated to contribute to revenue growth in FY24. The consideration paid upon signing is not considered material. Additionally, BreastScreen Victoria has the right to terminate the contract during the initial three-month period if certain product metrics are not met.
Breast cancer is the second leading cause of cancer-related deaths among women in Victoria after lung cancer, representing about 30% of new cancer diagnoses. With high incidence and mortality rates, many ways have been implemented to reduce the impact of breast cancer on the population such as emerging initiatives like BreastScreen Victoria. Established in 1991 as part of the national BreastScreen Australia program, it strives to raise awareness and prevention by offering free mammograms and make breast cancer screening accessible to women across the country.
Partnership with BreastScreen Victoria further expands Volpara’s presence in Australia, adding to existing contracts with BreastScreen Queensland, BreastScreen South Australia, I-MED, Sonic, IDX, Lumus, Wesley Breast Clinic, and Sydney Breast Clinic, among others. A New Zealand native with an office in Seattle, Volpara provides digital solutions to better understand cancer risk and guide recommendations about additional imaging, genetic testing, and other interventions. Its AI-powered image analysis enables radiologists to quantify breast tissue with precision and helps technologists produce mammograms with optimal image quality. Volpara holds security certifications and numerous patents and regulatory registrations, including FDA clearance and CE marking. Volpara Health software has been utilised by over 2,000 facilities worldwide, including leading US cancer screening centers, ultimately playing a crucial role in assessing breast density for over 16.5 million women across 40 countries.
For the full financial year ending in 25 May 2023, Volpara recorded a 34.1% increase in revenue from NZ$26.1m in FY22 to NZ$35m in FY23, with a CAGR of 63% from 2019 to 2023. Volpara’s subscription revenues have grown 35% year on year where a strong emphasis on SaaS has proven advantageous, hitting NZ$33.6m in FY23.
The Company concluded the financial year with operating loss of NZ$11.18m (a 31% decrease year-on-year from $16.18m) due to rising operating expenses, and Net Loss After Tax (NLAT) of NZ$9.8m (a 40% reduction on YoY from NZ$16.4m) primarily attributed to income tax benefit.
Volpara also published a guidance to the possibility of EBITDA break-even in FY24 with a range of NZ$0.5m to – NZ$2m.
Clara is a Business Reporter for The Sentiment.
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