One of the best performers on the All Ordinaries on Friday has been the Volpara Health Technologies Ltd (ASX: VHT) share price.
In late afternoon trade the medical technology company's shares are up a massive 12% to $1.40.
Why has the Volpara share price rocketed higher today?
Investors have been fighting to get hold of the company's shares today in response to an announcement released late on Thursday.
On Thursday the company advised that the United States Food and Drug Administration (FDA) has released a proposal to amend the Mammography Quality Standards Act (MQSA) to include a requirement that all U.S. screening facilities provide information on breast density to women and their healthcare providers after a mammogram.
What is the MQSA?
According to the release, the MQSA authorises FDA oversight over mammography facilities.
This includes their accreditation, certification, annual inspections, and enforcement of standards to help ensure mammography facilities provide quality care.
What are the changes?
The FDA has proposed a change in language that would outline how breast density can influence the accuracy of mammography and recommends that patients with dense breasts talk to their healthcare provider about their breast cancer risk.
It believes the changes will modernise mammography services and help empower patients. The proposed regulations are open to comment for a three-month period before being finalised.
Volpara's CEO, Dr Ralph Highnam, believes this is a big positive for both women in the United States and the company.
He said: "This is a major step forward for the women of the United States. No matter where they live, they are about to receive information regarding an important part of their breast health for them to monitor and act on with their healthcare professionals. This will lead to increased commercial opportunity for the Volpara Density clinical application, the world's most validated automated breast density solution."
Should you invest?
Due to the quality of its technology and talented management team, I think Volpara is one of the most exciting healthcare technology companies on the local market along with Nanosonics Ltd (ASX: NAN) and Pro Medicus Limited (ASX: PME).
Overall, I think it is well worth considering a long term investment in the company, especially following this development.
