Volpara Health Technologies Ltd (ASX: VHT) shares failed to take off today despite the company revealing a major United States contract partner. Despite a lift in trading this afternoon, the Volpara share price has closed at $1.31, the same price it opened at this morning. By comparison, the All Ordinaries Index (ASX: XAO) has fallen by 1% in trading so far today.
Today's announcement may come as welcome news for shareholders, with the Volpara share price having seen little movement recently. In fact, the ASX health share is trading at the same level it was this time 8 months ago. Furthermore, coronavirus-related issues have slowed down the company's sales pipeline, causing the Volpara share price to slump by nearly 30% since the start of the year.
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Major contract renewal
This afternoon, the Volpara share price edged higher after the company revealed that the major customer contract it renewed and extended in the second quarter of FY21 was with US Radiology Group.
The contract is for a 5-year term for delivery and ongoing use of the Volpara Breast Health Platform.
US Radiology is one of the largest radiology companies in the US, comprising more than 280 radiologists. The physician-led group aims to bring operational expertise together with state-of-the-art technology and infrastructure.
Management comments
Volpara CEO Dr Ralph Highnam stated:
We are now pleased to be able to announce publicly that the major customer that moved to our integrated breast care platform is US Radiology, a very ambitious and acquisitive group in the US.
Our partnership will see Volpara's Breast Health Platform driving the delivery of high-quality breast imaging outcomes and supporting patient-first healthcare. This is an important customer win and we expect our relationship to grow, in line with US Radiology's rapid expansion.
About the Volpara share price
Founded in 2009 on research conducted at Oxford University, Volpara has since grown into a notable health technology company. Its software and services are used by customers in 39 countries and are supported by numerous patents and trademarks, including FDA clearance.
The company aims to prevent advanced stage breast cancer by using 'Volpara Science', a set of clinically validated algorithms that use x-ray physics and artificial intelligence to assess breast tissue composition.
The Volpara share price has had a challenging year, however, falling by 26% since this time last year.
