Volpara Health Technologies

TERI THOMAS

CEO

(ASX:VHT)

◾ Company Name: Volpara Health Technologies ◾ Company ASX code: VHT ◾ Key areas: Breast cancer detection and screening, artificial intelligence software ◾ Key Personnel: Teri Thomas, CEO ◾ Locations: Wellington, New Zealand and Seattle, Boston, United States ◾ Market Cap as of 15/09/22: $148.70M ◾ 52 Week share price as of 15 September: $0.400 - $1.320 ◾ Company Website: volparahealth.com

COMPANY PROFILE

Volpara Health Technologies has a simple vision: become the global leader in software for the early detection of cancer.

Truthfully, that vision probably undersells where Volpara, founded in 2009, is currently at.

The company provides clinicallyvalidated software powered by artificial intelligence for the personalised screening and early detection of cancer, breast cancer in particular.

It is in that field that Volpara’s name is well-known, being the preferred partner of thousands of leading clinical sites around the world, and backed up by more than 100 patents, over 200 peer-reviewed publications and a wealth of certifications, trademarks and regulatory registrations.

Volpara’s software gives clinicians feedback on breast density, compression, dose, and quality, enabling them to offer their patients personalised breast care and enhanced risk assessment.

And the approach is working.

The company’s latest quarterly results showed record cash receipts of $8.7 million, up 35 per cent year-on-year, and US$23.7 million in contracted annual recurring revenue.

The rapid uptake of Volpara’s suite of products speaks to a concerning underlying need - that each year, despite huge advancements in technology, nearly 700,000 people lose their lives to breast cancer, out of 2.3 million diagnoses.

Even more concerning is that there are growing numbers of cases of breast cancer in women under 40.

“Young women are generally not part of the breast care conversation – it’s thought of as an older women’s concern,” Volpara CEO Teri Thomas says.

“Nine per cent of breast cancers are diagnosed in women under age 45, and those cancers tend to be diagnosed at later stages and are usually more aggressive. Sadly, many of these cancers could have been caught earlier.

“Let us take the time now to make earlier risk assessments the standard of care. By catching these cancers early enough, we can prevent them from claiming more young lives.”

Volpara’s mix of world-leading AI-powered software, deep clinical knowledge and patient-focused care makes the company uniquely placed to drive down the statistics, Thomas says.

“Our strategy is to proactively identify women at higher risk and personalise their care pathway,” she says.

“We increase physician and patient understanding of breast composition, cancer risk and imaging, improve the quality of every mammogram produced for more accurate detection and enable additional cancer risk modelling and genetic testing in streamlined workflows.”

This rigorous, multifaceted approach to tackling breast cancer is embedded into Volpara’s DNA.

Founded by Ralph Highnam following breakthrough medical physics and AI research at the University of Oxford, Volpara stands today as a leader in breast cancer risk assessment, volumetric breast density measurement, mammographic quality and AI and machine learning software.

A recent strategic review has further validated this model, and over the next two years the company will bring “more money in, less money out and protect and invest in our secret sauce”.

“We have the most researchvalidated technology in the industry, a great reputation, rich data for ongoing development, and the expertise to execute on new innovation,” Thomas says.

Volpara aims to be cash flow breakeven by the end of the FY24 financial year, and profitable by FY25; beyond that, it sees great opportunity to expand into new verticals in other cancers and diseases.

KEY INVESTMENT HIGHLIGHTS

APRIL 22, 2022: Highly experienced healthcare industry executive Teri Thomas named as VHT Group Chief Executive Officer. JULY 4, 2022: VHT signs contract with the largest US outpatient imaging provider Radnet, for an initial contract period of 42 months plus mutual option to extend. JULY 28, 2022: Volpara reports record quarter for contracted annual recurring revenue (CARR) at US$23.7M, up almost US$1.5M on end FY22, eyeing cash flow profitability by FY25.