In the realm of ASX technology stocks, the Pro Medicus Limited (ASX: PME) share price stands as a beacon of resilience and performance. Despite a broader market downturn, the health imaging technology company's shares have surged by 1% to reach $78.86 in morning trade. This exceptional performance is particularly noteworthy when compared to the 0.9% decline in the ASX 200 index at the time of writing.
So, what's driving the Pro Medicus share price to defy market trends?
Investors are flocking to acquire the company's shares following a significant announcement of yet another contract win. ASX PME has inked a lucrative A$16 million, eight-year contract with South Shore Health in the United States.
South Shore Health, the largest independent health system in South-eastern Massachusetts, operates the 393-bed South Shore Hospital in Weymouth, Massachusetts, and boasts a workforce of over 5,600 employees. The health system has notable clinical affiliations with academic and cancer centers across Massachusetts, all of which utilize the company's Visage 7 Enterprise Imaging Platform.
This contract operates on a transactional licensing model and encompasses the full-scale implementation of the company's cloud-engineered Visage 7 platform throughout South Shore Health. This includes Visage 7's Open Archive and Workflow modules, setting up a unified diagnostic imaging platform. Moreover, Visage 7 will facilitate enterprise image distribution that is seamlessly integrated into South Shore Health's electronic health record (EHR).
The management at Pro Medicus has already initiated the planning for the rollout, based on Visage's proven cloud-based implementation process. The go-live date is targeted for the first or second quarter of the 2024 calendar year.
Dr. Sam Hupert, CEO of Pro Medicus, highlights the pivotal role of autoscaling in their success. He explains, "Our offering is 'autoscaling' – we have one application that is transaction-based and in the cloud, so clients only pay for what they use, regardless of their size." Dr. Hupert is optimistic about securing more contract wins, particularly for their "full-stack" comprising all three Visage products, including the viewer, workflow, and archive.
With the Pro Medicus share price soaring 50% over the past 12 months, the company is evidently making significant strides in the health imaging technology sector. It is strengthening its presence in the North American integrated delivery network (IDN) landscape and solidifying its reputation as a standout performer among ASX technology stocks.