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Highlights
- Pro Medicus announces a $24 million, five-year contract extension with NYU Langone Health.
- Expansion includes full-stack cloud migration of the institution’s imaging system.
- Continued growth in North America with nine new contracts secured in FY24.
Pro Medicus Ltd (ASX:PME), a leading provider of medical imaging software, experienced a minor 0.21% dip in share price today, even as it announced a significant new contract in the United States. This follows a series of impressive wins across North America and Europe in recent years, solidifying the company’s reputation in the healthcare sector.
Landmark Deal with NYU Langone Health
Pro Medicus revealed that its US subsidiary, Visage Imaging, has entered into a $24 million, five-year agreement with NYU Langone Health, a prestigious healthcare institution in North America. This contract builds upon their existing partnership and incorporates a "full-stack" solution.
The agreement involves the integration of Visage 7 Open Archive into NYU Langone’s existing Visage 7 Viewer and Visage 7 Workflow systems. This marks a significant step as the institution transitions its on-premise infrastructure to a fully cloud-based model.
Additionally, as part of the deal, the original Visage 7 Viewer contract, signed in September 2020, has been extended by a year, pushing its duration to 2029. Pro Medicus plans to begin the migration process immediately, including transferring NYU Langone's current archive to the new system.
The contract operates on a transaction-based licensing model, offering potential for additional revenue based on usage. This move underscores Pro Medicus' expansion within North America’s academic healthcare institutions.
CEO's Perspective on Strategic Growth
Dr. Sam Hupert, CEO and co-founder of Pro Medicus, emphasized the significance of the deal, stating:
"This is a significant deal for us as it confirms our belief that there is opportunity for us to sell our archive and worklist modules back to our 'viewer-only' clients. In time, we believe those customers with on-premise solutions will join NYU and transition to cloud, a trend we see continuing."
Steady Stream of Wins in North America
Pro Medicus has been on a winning streak. During its annual general meeting, the company disclosed that it had secured nine new contracts in North America during FY24, including its largest deal to date with Baylor Scott & White, which became fully operational in mid-September.
Since the beginning of FY25, the company has announced two additional major client renewals, one in North America and one in Australia, both at increased fee levels. Management highlighted that its pipeline remains robust, with new opportunities continually emerging despite the significant growth already achieved.
Stock Performance
Despite today’s slight dip, the Pro Medicus share price has surged nearly 140% year-to-date in 2024.
