- The fast-paced digital transformation has revolutionised the healthcare sector
- Technology is penetrating all aspects of healthcare services, be it staff and facility management or patient care and diagnosis
- This month Pro Medicus (ASX: PME) secured two contract renewals and a new contract representing a worth of AU$75 million
The fast-paced digital transformation has revolutionised business sectors, and the healthcare industry is no exception. The COVID-19 pandemic of 2020 will serve as a turning point in the evolution of medical services toward digitalisation.
To meet new challenges, the healthcare sector had to adapt to new technological possibilities. With technology penetrating all aspects of healthcare services – from staff and facility management to patient care and diagnosis – it has become crucial for the sector to embrace rapid technological changes.
This article will discuss three ASX healthcare tech stocks that have provided decent price returns to their investors in the last three years.
Data source: Refinitiv as of 27 June 2022
Why You Should Explore These 3 ASX Technology Stocks?
Cogstate Ltd (ASX: CGS)
Cogstate Ltd is a neuroscience technology company that optimises brain health assessments to develop new medicines and enable earlier clinical insights in healthcare. The company offers computerised cognitive tests across a list of domains and supports electronic clinical outcome assessment (eCOA) solutions through its technology.
Following are the highlights of the company for the quarter ended 31 March 2022:
- A record 3Q with 44% growth in sales contracts compared to the previous corresponding period (pcp)
- Revenue growth by 5% compared to pcp
- Clinical trials revenue – up by 10%
- Healthcare revenue – down by 24%
- Total revenue backlog of AU$143.5 million, an increase of 80% compared to the pcp
- FY22 Guidance – Earnings before Interest and Taxes (EBIT) margins ranging from 20%-24%
Global Health Limited (ASX: GLH)
Global Health Limited is a healthcare software provider based in Australia. It provides digital health solutions to the Australian healthcare industry. It has a wide range of customised software and SaaS solutions helping health businesses be more efficient and deliver excellent patient care.
In the last two months, the company has secured five new contracts. Let us have a look:
- Two major contracts for Homeless Healthcare (WA) and Peninsula Health (VIC) adding up to a total of AU$249,033 in annual recurring revenue and AU$74,250 in professional services. Under the contract, GLH will implement a range of MasterCare solutions.
- Three key contracts with Arcadia Healthcare, Matilda Nepean Private Hospital and Waikiki Private Hospital representing a collective value of AU$185,400 in annual recurring revenue and AU$110,000 in professional services. Under the contract, GLH will implement the following:
- MasterCare Patient Administration System (PAS)
- In patient Electronic Medical Records (EMR)
- Discharge Summaries
- Cloud hosting and digital engagement platform
Pro Medicus Limited (ASX: PME)
Pro Medicus is a global healthcare informatics company, which provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups.
Following are the recent highlights of the company this month:
The company’s wholly owned US subsidiary, Visage Imaging, Inc., signed two key contract renewals summing up to AU$47million. The contracts are with these US-based companies:
- Sutter Health - for a further seven years,
- Wellspan Health - for an additional five years
Visage Imaging, Inc., also signed a seven-year contract worth AU$28million with Allina Health, a not-for-profit healthcare system based in Minnesota, USA. Under the agreement, PME will see its Visage 7 Enterprise Imaging Platform and Visage 7 Workflow module implemented throughout Allina Health, offering an integrated diagnostic imaging platform across the network.