This company has game changing proprietary technology utilising AI to transform the early detection of breast cancer in the giant US market. It’s early stage and there a big risks, but it’s worth, at the very least, having a look at.

WHY WE LIKE IT

Volpara’s software enables early detection of breast cancer by utilising its proprietary artificial intelligence (AI) technology to improve breast screening. The technology allows for the objective measurement of breast density, which is associated with breast cancer risk. Legal, regulatory and medical association guidelines are moving towards breast density measurement being the gold standard in breast cancer screening. Sales are climbing in the huge US market, aided by the acquisition of US based specialist radiology clinic management software provider, MRS Systems in June 2019 for US$14.6m. This has increased the company’s access to number of US breast imaging clinics by five times.

What's new?

The New Zealand based med tech is early on in its lifecycle, but is showing strong growth. In FY19 (12 months to 31 March 2019) the company generated NZ$5m in revenues and almost doubled its gross profit to NZ$4.1m. The bottom line loss increased from NZ$8.8m to NZ$11.7m. FY20 has started well with its annual recurring revenues (ARR - the normalised amount of cash the company expects to book over the next 12 months based on current contracts) was $NZ14.6m at the end of 1Q20 (30 June) and the company says it is on track to meet FY20 sales guidance of NZ$17.1m.

**FY21 Forecast 

UTRR Directors own stock in VHT.