‘Double whammy’ win: Cancer-fighting AI takes on $750 million market

'Double whammy' win: Cancer-fighting AI takes on $750 million market

Date of Report: Market close on 30/11/2021
ASX: VHTPrice: A$1.140

52 Week Range: $1.005 - $1.715

Market Cap: $286.54 million

Sector: Health Care Equipment & Services

Every second week we invite a leading fund manager to present at The Insider: Meet the Fund Manager. In September, Matt McNamara, from Horizon 3, selected Volpara Health Technologies as one of his two favourite stocks just as the business recorded its best-ever second quarter.

September 17, 2021

October 13, 2021

The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading fund managers. They share their approach to investing, favourite companies and their market view for the year ahead.

The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing. 

Breast screening programs are proving to reduce the mortality of breast and lung cancers, and Australian-listed company Volpara wants to improve this life-saving practice by making it more personalised.

Chief executive Ralph Highnam – who also founded the business and serves as its chief scientist – told Reach Markets the current ‘one-size-fits-all’ approach to screening can be improved upon.

“That’s where Volpara comes in with our platform and our AI,” he said.

Volpara provides a software-as-a-service platform that measures the compression placed on women’s breasts during screening, as well as recording the radiation dose used during the X-ray procedure and the true density of women’s breasts.

Volpara can even tell doctors whether or not the image they’ve taken will be of a high enough quality to be of use, or if another image should be taken while the woman is still in the practice.

These data points can be used by doctors to ensure women receive all the benefits of breast screening without suffering undue discomfort or pain.

The software’s ability to measure a woman’s breast density is especially important, too. Women with higher breast density are more likely to develop breast cancer, but less likely to have this cancer caught by screening processes.

“It’s a real double-whammy for women with dense breasts,” Mr Highnam said.

In the US – where Volpara has already captured 34% of the market share – some states have ruled that doctors must provide patients with breast density information.

This could soon be required across the entire country, Mr Highnam said, as the Food and Drug Administration (FDA) is currently weighing up a national mandate.

The company has few competitors in this market, which Mr Highnam estimates generates combined annualised rates of return of US$750 million globally.

Horizon 3 chief investment officer Matt McNamara noted the company has experienced rapid growth in its customer base, growing from a 3% market share in the US five years ago to more than one-third today.

“It’s very exciting technology because it is detecting breast cancer earlier in these ladies,” he said.

“Everyone is very hopeful and expecting US legislation to mandate compulsory breast screening measurements soon and these guys will be right at the forefront of being able to deliver that.”

Mr McNamara added that such a change would give medical practitioners a better chance of finding those cancerous cells sooner.

Click here to view more videos from Matt McNamara’s ‘Meet the Fund Manager’ session, or click here to view the full ‘The Insider: Meet the CEOs’ session.

The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.

Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.

The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.

Meet the Fund Manager

Upcoming Session

Michael GoldbergManaging Director and Portfolio ManagerCollins St Asset Management

Meet the Manager

Get access to some of Australia’s leading fund managers who share their 3 favourite stocks, investment approach and insights on the market.

Each session includes:

  • 3 favourite stock opportunities
  • Market views for the year ahead
  • Investment strategy and approaches

This is a live and interactive session, where you get the rare opportunity for Q&A with a fund manager. Spots are limited, so secure yours today.

Book into the next session

What is a 708 investor?

By clicking submit, I agree to the terms of the Reach Markets Financial Services Guide that includes the Privacy Statement.

The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.