Here’s Why Volpara Health Zoomed Up By 3.37% On ASX Today

Volpara Health Technologies Limited (ASX:VHT), established in 2009 and based out of Wellington, New Zealand, is a medical technology company whose Artificial Intelligence imaging algorithms assist the early detection of breast cancer at clinics worldwide, supported by numerous patents, trademarks and regulatory clearances (FDA and CE marking).

On 13th May 2019, Volpara announced the publication of a new paper, “A case-control study to add volumetric or clinical mammographic density into the Tyrer-Cuzick breast cancer risk model”, which appears in the official Journal of Breast Imaging, of the US Society of Breast Imaging.

The company’s core patented product Volpara®Density™ clinical application measures breast density automatically and objectively from a mammogram to generate a “volumetric breast density” score, the physical measurement of the breast tissue. On the contrary, a radiologist develops a visual assessment of breast density, using the qualitative, subjective BI-RADS categorizations of density by judging the brightness of mammogram. So far, multiple studies have demonstrated that even expert radiologists often disagree on those categorizations.

The paper used visual BI-RADS assessments from breast imaging specialists at the University of Virginia and included 474 women who were diagnosed with invasive breast cancer and 2,243 controls. Some of its key inferences are as follows:

• Clinical BI-RADS breast density and volumetric density may be used in combination with classical questionnaire risk factors to assess risk.
• Combining breast density with other risk factors increases the number of women accurately identified at high and lower risk of breast cancer.
• The Tyrer-Cuzick risk assessment tool has been updated to support the use of BI-RADS for volumetric breast density.

The authors commented on the results stating, “The addition of volumetric and visual mammographic density measures to classical risk factors improves risk stratification. A combined risk could be used to guide precision medicine, through risk-adapted screening and prevention strategies.”

Volpara Health Technologies also informed the stakeholders that the ASBrS (The America Society of Breast Surgeons) released an official position statement on screening mammography where it made recommendations regarding both how to assess breast cancer risk with breast density as an input and how to act upon such an assessment.

To date, Volpara®Density™ is the most clinically validated breast density measurement tool included in one of the complete breast cancer risk models, the Tyrer-Cuzick Risk Evaluation Tool, version 8. The ASBrS made four recommendations:

• Women age >25 should undergo formal risk assessment for breast cancer;
• Women with an average risk of breast cancer should initiate yearly screening mammography at age 40;
• Women with a higher-than-average risk of breast cancer should undergo yearly screening mammography and be offered yearly supplemental imaging; this screening should be initiated at a risk-based age; and
• Screening mammography should cease when life expectancy is <10 years.

For the quarter ended 31st March 2019 (Q4 FY19), the company reported cash receipts from customers at NZD 5.6 million, up 83% from FY18, and NZD 14.4 million cash on hand as of end of the three months. The annual recurring revenue (ARR) was also up 86% to NZD 6.63 million relative to Q4 FY18 and the company is targeting 50–80% ARR growth in FY20, as depicted below.

With a market capitalisation of ~ AUD 293.07 million, the VHT stock closed the day’s trading at AUD 1.685, up 3.37% with ~ 494,929 shares traded.

Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.