Volpara Acquires Breast Cancer Risk Assessment Company CRA Health, LLC
• CRA Health, LLC (“CRA”), based in Boston, MA, is an industry leader in breast cancer risk assessment spun out from Massachusetts General Hospital, a Harvard Medical School teaching hospital
• CRA is profitable, 1 with Annual Recurring Revenue (ARR) of over US$4.0M (NZ$6.2M2 ), Average Revenue Per User (ARPU) of ~US$1.70 and coverage of ~6% of US breast screenings
• CRA’s software is integrated with the major Electronic Health Record (EHR) and genetics companies
• Volpara is paying US$18.0M for CRA, with a further US$4.0M payable upon meeting of key performance and staff-retention targets
• Post-acquisition, Volpara will have ARR of ~US$17.5M (NZ$26.9M2 ) and at least one product in use in over 30% of US breast screenings
• Post-acquisition, Volpara will have ~NZ$35M cash
• Volpara is elevated as a leader in personalised breast care
Volpara's latest quarterly is encouraging revealing a 20% lift in 3rd quarter ARR (it's largest 3rd quarter sales results to date). That's quite impressive given the limited acess to hospitals and lack of trade shows due to covid.
Cash receipts were only a bit stronger though, coming in at NZ$4.6m vs NZ$4.5m in Q3 last year -- due in large part to a firmer USD.
The company remains very well capitalised, with over NZ$60m in cash on hand, and average revenue per customer was 5% higher than the proceeding quarter and about 20% higher than a year ago.
The business is still cash flow negative, although cash burn is improving, and at the lowest level since the acquisition of MRS in 2019.
With VHT's product covering 27% of the US market, they are increasingly becoming the provider of choice and have a long runway for growth.
Deal with BreastScreen Queensland announced today.
The deal includes a 5 year contract of VolparaEnterprise.
The initial stage will involve the roll-out of VolparaEnterprise to 11 BreastScreen Queensland services operating in Brisbane and elsewhere in the state.
Within the annonment it states that the terms and conditions of the contract with BreastScreen Queensland are confidential.
Appendix 4C – Q2FY21 Quarterly Cash Flow Report
Wellington, NZ, 8 October 2020: Volpara Health Technologies (“Volpara,” “the Group,” or “the Company”; ASX: VHT), a health technology software company whose integrated breast care platform assists in the delivery of personalised patient care, is pleased to provide investors with an update on Q2 trading.
OM have a "Hold" call on Volpara Health (VHT) with a $1.46 TP. VHT closed at $1.395 today.