Will This Healthcare Stock Retain Its Upward Momentum – VHT?

  • Apr 20, 2019 AEST
  • Team Kalkine
Will This Healthcare Stock Retain Its Upward Momentum – VHT?

Healthcare sector company, Volpara Health Technologies Limited (ASX: VHT) is trading near to its 52-week high of $1.900 with the stock up 70.45% this year.

All the recent news has favoured the company to such an extent that it took the annual yield to 164.08% for the past 12 months. VHT recently got added in the ‘all ordinaries’ list released by S&P Dow Jones Indices; the change effective at the open of trading on March 18, 2019.

Volpara is a medical technology company which has developed a machine learning technology, VolparaDensity, for assessing the early detection of breast cancer. VolparaDensity is positioned as the most preferred breast density assessment software across the globe. It has CE-mark and has also been approved by the Health Canada, FDA and TGA.

The company recently announced the extension of the agreement with GE Healthcare for the global distribution of its proprietary VolparaDensity software. It stated that now installed in over 35 countries, the VolparaDensity clinical application analyses mammograms using AI imaging algorithms to provide radiologists with volumetric and automated breast density assessments.

Volpara has achieved as massive as 86% growth in FY19 Annual Recurring Revenue to NZ$6.63 million compared to NZ$3.6 million at the end of Fiscal 2018. This exceeds the previously stated market guidance of 85%. Total Contract Value (TCV), representing the value of contracts signed, grew up by 42% on FY2018 to NZ$15.8 million.

Further, the guidance for coverage of 7% of women screened in the United States has also been surpassed as the women screened in the US were 7.1% with all now contracted to Volpara’s software. As a result, there could be a lot of optimism be felt within the company on the foundation of solid fundaments, and world-class medical technology in the detection of breast cancer at the early stage.

CEO Ralph Highnam stated that Fiscal 2019 has been ended at a very positive note with the maiden NZ$1 million ARR quarter, its first NZ$1 million order in place and the partnership with several clinics, including Australia’s I-MED Radiology Network.

Volpara increased its footprint, with some key wins, across both Australia—Alfred Imaging—and New Zealand—Broadway Radiology, Mercy Radiology Auckland, and BreastScreen Central, NZ. There have been a total of 128 Volpara®Enterprise™ contracts at the Fiscal year ended 31 March 2019 compared to 57 at end of FY18, representing an increase of 125%.

The company further obtained a new FDA 510(k) clearance for technologies used in its VolparaEnterprise software and VolparaDensity clinical application, setting the stage for the launch of the VolparaLive! System, which is a mammography’s maiden real-time decision support product.

VHT stock price last traded at $1.790, down 4.533%, on 18 April 2019. The market capitalisation of the company stands at $337.13 million on the Australian Securities Exchange.


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