Story image

Kiwi AI breast cancer detection solution raises $AU20 million

05 Jun 2018

Wellington-based ASX-listed Volpara Health Technologies has raised $AU20 million through an oversubscribed placement to institutional investors and a share purchase plan to speed up growth in the US, expand New Zealand research and development (R&D) and fund the rollout of direct sales into Asia.

This announcement from Volpara, which focuses on early detection of breast cancer using artificial intelligence, comes alongside releasing strong results for the full financial year March 2018.

Volpara CEO Dr Ralph Highnam says the company has delivered year-on-year growth as a result of its successful transition, begun in FY17, from a predominantly capital sales model to a Software as a Service (SaaS) model.

“These results reflect progress made in FY18, where we met all our objectives, including increasing annualised recurring revenue by more than 200%, while keeping costs mostly in line with FY17 and increasing our market share to more than 3% of US women.

“It is pleasing to see our progress now beginning to be reflected in the financial results we are delivering.”

Cash on hand was NZ$4.84m as at 31 March 2018, and now is approximately NZ$24.5m after the successful placement and share purchase plan raising A$20m for the company.

“We have continued to develop VolparaEnterprise throughout FY18 while also making advances in our product pipeline, with some exciting new products set to be released by the Wellington-based engineering team to the market towards the end of the calendar year,” Highnam says.

“These products will help to ensure we have happy customers and at the same time draw more customers in and increase price per woman.

“With the capital raise, we now have the funds necessary to continue our strong growth, but as always we are still very much focused on preserving and improving shareholder value with prudent spending,” he adds.

Volpara has also announced it is about to begin phase two of a major breast cancer research project [the PROCAS II project] with the UK National Health System.

“Having addressed all of phase one's data governance and system design requirements, Volpara will now deploy our solution across six sites, covering 8,000 women for a 22-month paid trial,” Highnam says.

How big data can revolutionise NZ’s hospitals
Miya Precision is being used across 17 wards and the emergency department at Palmerston North Hospital.
Time's up, tax dodgers: Multinational tech firms may soon pay their dues
Multinational tech and digital services firms may no longer have a free tax pass to operate in New Zealand. 
Spark’s new IoT network reaches 98% of New Zealand
Spark is the first company to confirm the nationwide completion of a Cat-M1 network in New Zealand.
WhatsApp users warned to change voicemail PINs
Attackers are allegedly gaining access to users’ WhatsApp accounts by using the default voicemail PIN to access voice authentication codes.
Robots to the fore – Key insights for New Zealand Business into RPA in 2019
From making artificial intelligence a business reality to closer ties to human colleagues, robotic process automation is gearing up for a strong 2019.
50 million tonnes of e-waste: IT faces sustainability challenges
“Through This is IT, we want to help people better understand the problem of today’s linear “take, make, dispose” thinking around IT products and its effects like e-waste, pollution and climate change."
Vocus & Vodafone unbundle NZ's fibre network
“Unbundling fibre will provide retail service providers with a flexible future-proofed platform regardless of what tomorrow brings."
IDC: A/NZ second highest APAC IoT spenders per capita
New IDC forecast expects the Internet of Things spending in Asia/Pacific excluding Japan to reach US$381.8 Billion by 2022.