Pro Medicus shares rise on $32m contract extension
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The news: Medical imaging provider Pro Medicus has signed a $32 million contract extension with an unnamed "large" Australian radiology network.
The numbers: Pro Medicus said the five-year contract extension is for the company's Visage radiology imaging solutions (RIS) product, its flagship imaging software which drives the majority of revenue and growth for the business.
Pro Medicus shares were up 2% to $190.38 at market open on the ASX, having nearly doubled in value since January.
The context: The Melbourne-based group, which secured a $98 million contract renewal from US-based Mercy Health earlier this month, said its latest contract extension was negotiated at an increased fee.
Pro Medicus provides medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.
What they said: "This contract extension cements our leadership position when it comes to RIS in the Australian market," said Pro Medicus CEO Sam Hupert.
The source: ASX announcement
