Beamtree (ASX:BMT) signs US$7M contract with Ampath; shares surge

3 min read | May 10, 2022 01:23 PM AEST | By Ritwika

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Beamtree (ASX:BMT) signs US$7M contract with Ampath; shares surge — Image source: © Kenchiro755 | Megapixl.com

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Highlights

Beamtree has signed a five-year deal with Ampath for the implementation of its RippleDown software.

The total value of the contract is AU$9.7 million.

Backed by the announcement, the share price of Beamtree has gained more than 7% on the ASX.

The shares of Beamtree Holdings Limited (ASX:BMT) were spotted trading 17.647% higher at AU$0.300 per share at 12:12 PM AEST on the ASX today (10 May).

Approximately 230,600 shares of Beamtree were traded so far.

The ASX-listed healthcare equipment developer has announced today that it has secured a significant agreement with a South African company, Ampath.

The share price of Beamtree has fallen approximately by 37% on the ASX over the past 12 months. On the other hand, Beamtree’s year-to-date share price also fell approximately by 43% at 10:54 PM AEST on the ASX today (10 May).

Details of the agreement:

Beamtree announced securing a material agreement of five years with the South African pathology service provider, Ampath. The approximate worth of the agreement is AU$9.7 million in total and US$1.4 million annually. This agreement will allow both the companies to collaborate with each other for the provision of Beamtree’s RippleDown- decision support product.

RippleDown is a software developed by Beamtree that helps in automating clinical and administrative processes in healthcare in pathologies. This software is popularly known for reducing the time required for healthcare professionals to read routine test results and improving the quality of the data, thus improving financial efficacy.

Beamtree further informed that its partnership with Ampath currently works with almost 40% of South Africa’s private healthcare sector after a successful ‘proof-of-concept’ pilot test. The pilot test proved the efficiency of RippleDown and how it can help Ampath labs to offer better pathological services to its clients.

To be more specific, the pilot report reflected that Beamtree’s RippleDown Expert technology could automate up to 90% of clinical interpretations, thereby proving an estimated saving of over 6,000 hours per annum of manual validation.

Therefore, the software is able to save up to 40,000 hours per annum of administrative time for Ampath, helping it to offer a far better service to its clients.

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Management commentary:

Tim Kelsey, the CEO of Beamtree, said:

About Beamtree:

Beamtree Holdings Limited is an Australia based automation technology and data analytics company that mainly serves the healthcare sector. The company is popularly known for offering improved safety and effectiveness through its software, along with reducing the burden of manual efforts experienced by clinical staff.

Beamtree’s flagship product- RippleDown, is an automated clinical decision-making software which is used to smoothen the administrative processes in a pathology. The software can also be used for automating clinical records and data integrity.

Beamtree currently holds a market capitalisation of AU$62.28 million.

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