Here’s why the Volpara (ASX:VHT) share price is surging 7% higher

The Volpara Health Technologies Ltd (ASX:VHT) share price is surging higher after announcing its largest ever contract win…
The post Here’s why the Volpara (ASX:VHT) share price is surging 7% higher appeared first on The Motley Fool Australia. –

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

The Volpara Health Technologies Ltd (ASX: VHT) share price looks set to end the week on a very positive note.

In early afternoon trade the healthcare technology company’s shares are up 7.5% to $1.42.

Why is the Volpara share price surging higher?

Investors have been buying Volpara’s shares this afternoon after it announced the signing of a major new contract.

According to the release, the company’s recently acquired CRA Health business has signed Volpara’s highest value contract to date.

CRA Health is a breast cancer risk assessment company that was spun out from Massachusetts General Hospital, a Harvard Medical School teaching hospital. Volpara announced its acquisition last month for US$18 million upfront and an additional US$4 million payable upon it meeting recurring revenue and staff retention targets over the next 18 months.

What was the contract?

The release explains that CRA Health has signed a contract that covers the provision of breast cancer risk scores to a large Indiana-based organisation.

The unnamed company has sites across more than 20 states and runs a major Electronic Health Record system. Management notes that the latter makes the deployment and implementation very cost effective.

The contract is worth over US$400,000 per year in Annual Recurring Revenue (ARR).

Volpara’s CEO, Dr Ralph Highnam, commented: “We are very pleased to announce that CRA Health has signed up a major US health system with significant ARR associated with it. Whilst we would not normally announce individual deals, this is the Volpara Group’s highest value contract signed to date.”

“Not only does it enable us to help many more women across the United States benefit from early cancer detection, but it also sets us up for future sales of additional products to this organization. Further, the contract is validation of the decision to purchase CRA Health and validation that the world is rapidly moving towards personalised breast care, which includes analysis of risk and genetics,” he concluded.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia 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.

The post Here’s why the Volpara (ASX:VHT) share price is surging 7% higher appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!