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Highlights
Pro Medicus signed a 7-year contract with a Minneapolis-based firm Allina Health.
The deal with Alline Health is worth AU$28 million.
The deal is expected to provide a unified diagnostic imaging platform across the network.
Pro Medicus Ltd (ASX:PME), an ASX-listed healthcare informatics company, on Thursday announced a 7-year contract with a Minneapolis-based firm. The company informed the ASX that its wholly owned US subsidiary, Visage Imaging, inked an AU$28 million deal with US-based not-for-profit health care entity Allina Health.
Pro Medicus provides healthcare imaging software and services to hospitals, diagnostic imaging groups and other health related entities.
According to the ASX filing, the deal is expected see the company’s Visage 7 Enterprise Imaging Platform (Visage 7) and Visage 7 Workflow module implemented throughout Allina Health. It would provide a unified diagnostic imaging platform across the network, Pro Medicus said.
The biotech company also said that it is expected to start planning the rollout on an immediate note. It would be based on Visage’s proven cloud native implementation process with initial go-lives targeted for the second half of the calendar year.
By 10:10 AM (AEST), Pro Medicus stock was trading at AU$41.42, up 0.31%. The share price is down over 34% on a year-to-date (YTD) basis. In the past one year, the stock has shed over 10%.
“This is our fifth major contract in the North American integrated delivery network (IDN) space in 18 months, underpinning the strong momentum we continue to build in this important segment of the market,” said Pro Medicus CEO, Dr Sam Hupert.
“IDN’s are growing because of the trend towards value-based medicine coupled with industry consolidation,” he added.
Pro Medicus noted that the pipeline was strong and spanned a growing number of market segments, including academic institutions, the IDN space, independent radiology groups, and the for-profit sector.
“Our proven cloud-engineered technology provides us with a very significant strategic advantage with the last six of our major contracts being cloud-based — a trend we think will continue,” said Hupert.
Pro Medicus’ recent earnings
Pro Medicus boosted its revenue by 36% (Y-O-Y) for the 12 months ending December 2021. The revenue was above its five-year compound annual growth rate of 23.2%. The profit margins also showed continual improvement. The firm delivered AU$37.99 million in profit with a margin of nearly 47%.
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