Volpara (ASX:VHT) share price edges lower despite biggest contract win

a sonographer monitors an image of a patient's breast on a screen with the patient standing at an imaging device in the background.

The Volpara Health Technologies Ltd (ASX: VHT) share price is heading south today regardless of the company’s significant positive announcement.

At the time of writing, the healthcare technology company’s shares are down 2.54% to $1.15.

Volpara secures largest-ever contract

According to the company’s announcement, Volpara advised it has signed its biggest contract to date with leading US outpatient diagnostic imaging provider Akumin.

Founded in 2015, Akumin provides freestanding, fixed-site outpatient diagnostic imaging services in the United States. The company is considered the fastest growing provider in this market across the US.

Akumin has an extensive network of 170 locations in 11 states, conducting more than 5,000 procedures per day.

The five-year deal is valued at US$2.15 million which represents an annual recurring revenue (ARR) of US$430,000.

Under the agreement, Volpara will install its Patient Hub software across Akumin’s network of imaging centres. The software solution is expected to provide a standardised patient tracking platform that incorporates Volpara Risk and Scorecard.

As such, this will enable Akumin to accurately decide the appropriate personalised breast cancer screening pathway for each patient.

Volpara estimates that at least one of its software products is used in the breast cancer screening of more than 33% of women in the US.

Whilst the announcement is extremely positive, it appears the broader All Ordinaries Index (ASX: XAO) is weighing down the Volpara share price. The index is currently down 0.90% to 7,508.7 points.

Volpara group CEO Dr Ralph Highnam commented:

While we would not normally announce individual deals, this is Volpara’s highest-value contract signed to date.

We are experiencing tremendous momentum for our platform in the market as we bring together best-of-breed patient tracking, risk assessment, and density scoring to allow our customers to provide their patients with the individualised care they deserve.

Our platform provides both Volpara and our customers with a significant advantage and is enabling us to seek out opportunities that did not exist even a couple of years ago.

About the Volpara share price

The past 12 months have been disappointing for investors with the company’s shares down 13%. Year-to-date, their losses are further magnified, almost 20% lower over the period.

Based on today’s price, Volpara presides a market capitalisation of roughly $29 million and has approximately 251.3 million shares outstanding.

The post Volpara (ASX:VHT) share price edges lower despite biggest contract win appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and 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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