The Volpara Health Technologies Ltd (ASX: VHT) share price has jumped by almost 5% this morning, after the company announced a new contract with BreastScreen Queensland.
At the time of writing, the Volpara share price is trading at $1.38, up by 6 cents.
What’s driving the Volpara share price?
The Volpara share price is on the rise today after the medical technology company reported it has signed a five-year software-as-a-service (SaaS) contract with BreastScreen Queensland following a successful pilot trial.
BreastScreen Queensland is the third largest public breast screening program in Australia, and is head-quartered on the Gold Coast.
The contract, initially for Volpara’s quality assurance platform, VolparaEnterprise, will allow for the expansion of services to include VolparaDensity and VolparaLive.
The initial stage will involve the roll-out of VolparaEnterprise to 11 BreastScreen Queensland services operating in Brisbane and elsewhere in the state.
The BreastScreen Queensland services comprise 69 gantries and 43 sites that include 10 mobile units, covering 171 radiologists and technologists.
The roll-out of VolparaEnterprise to BreastScreen Queensland has already begun, and Volpara expects it to go live in early 2021.
Although the terms and conditions of the contract will remain confidential, Volpara CEO Dr Ralph Highnam believes the deal will put Volpara’s name on the world map, saying:
We are delighted to now have BreastScreen Queensland signing up to use our software, making it the second major public breast cancer screening programme in Australia signed up to Volpara products.
This is news that will resonate around the world, and we are extremely pleased that our software will be helping women in the fight against breast cancer, including women in the lives of many of our long-term investors.
What is Volpara?
Volpara is a New Zealand-based provider of breast imaging analytical products that improve clinical decision-making and the early detection of breast cancer.
It suite of software helps clinicians understand their patients, and administrators better understand their practices.
Today’s announcement is the second major contract the company has been able to secure in the space of just one week.
Last Friday, Volpara also announced it has signed a five-year contract with a major United States-based customer, US Radiology.
That contract was for the delivery and ongoing use of the Volpara Breast Health Platform.
About the Volpara share price in 2020
In its latest update to the market in November, the company reported net revenue of NZ$9.5 million for the first half of FY21, up 38% on the prior corresponding period.
However, that top line revenue resulted in a net loss after tax of NZ$8 million, compared to a NZ$8.9 million loss in 2019.
This performance has been reflected in the Volpara share price, which is down 25% this year.
Based on the current share price, the company commands a market capitalisation of $329 million.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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