Pro Medicus shares rise on $20m deal with University of Iowa Health Care
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More news: Pro Medicus shares rallied after the company announced it had signed a $20 million contract with University of Iowa Health Care to roll out its Visage product across three campuses.
Pro Medicus shares were up 4.65% to $248.20 by 12:25pm AEST.
RBC Capital Markets analyst Garry Sherriff said the deal was positive and maintained a price target of $220 on the stock.
He noted there was an underappreciation of the fact that when Pro Medicus’ customers grow — particularly through M&A — the company also grows.
What they said: "Today's win reinforces PME's cloud superiority by displacing an undisclosed incumbent," Sherriff said.
“Doing some digging shows University of Iowa (UI) has grown organically and through acquisition, implies PME could benefit should UI continue to pursue M&A growth.
"... UI has shown its appetite to grow via M&A with the acquisition of Mercy Iowa City Hospital in early 2024."
Pro Medicus inks $20m deal with University of Iowa Health Care
The news: Pro Medicus has signed a $20 million five-year contract with the University of Iowa Health Care to roll out its Visage product throughout campuses.
The context: University of Iowa Health Care has three patient campuses which comprise about 1,200 staff physicians and dentists and nearly 800 resident and fellow physicians.
The rollout of the platform is targeted for Q4 of the 2025 calendar year.
The contract follows a string of similar deals for the radiology tech software company. These include LucidHealth, Florida-based BayCare, Duke University Health System and Duly Health.
Melbourne-based Pro Medicus provides medical imaging software and services to hospitals, imaging centres and healthcare groups. It acquired US-based Visage Imaging in 2009.
What they said: Pro Medicus chief executive Sam Hupert said: “Our pipeline remains strong and spans all market segments. As has been the case with many of our recent contracts, this deal is for our ‘full stack’ comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing.”
The source: ASX
