Pro Medicus shares rise after securing $45m in new contracts
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More news: Pro Medicus shares lifted on the ASX after the healthcare informatics company announced that its US subsidiary Visage Imaging had secured five new contracts worth a combined $45 million.
Pro Medicus shares were up 2.1% to $115.66 by 12:50pm AEST. The stock has gained more than 90% over the last 12 months.
Pro Medicus’ Visage Imaging secures $45m in new contracts
The news: ASX-listed Pro Medicus’ wholly owned US subsidiary Visage Imaging has signed five new contracts with a combined minimum value of $45 million.
The numbers: The contracts, which are expected to be completed within the next six months, include deals with paediatric hospitals Nationwide Children's Hospital, worth a $11.5 million over seven years, and Nicklaus Children's Hospital, totalling $6.5 million over five years.
Visage Imaging has penned five-year contracts with radiology groups US Radiology Specialists and Consulting Radiology, contributing $8.5 million and $9.5 million respectively. It has also secured a $9 million, eight-year contract with Moffitt Cancer Center.
Pro Medicus, which has seen its $11.8 billion market cap grow almost 150-fold in the last 10 years, said the contracts brought the company's minimum total contract value for new sales for this financial year to $245 million.
The context: Healthcare informatics company Pro Medicus provides medical imaging software and services to hospitals, imaging centres and health care groups worldwide. The Melbourne-based company acquired Visage Imaging in 2009, and in February the subsidiary launched a diagnostic imaging app for Apple Vision Pro, the tech giant's spatial computing platform.
What they said: Pro Medicus CEO Sam Hupert said: "They are a diverse group, two children's hospitals, two physician led private radiology groups and a cancer centre. This reinforces our belief that our product is ideally suited to virtually all segments of the market from smaller groups all the way through to some of the largest integrated delivery systems and academic medical centres in the US."
"Despite record new contract signings this year, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments," he said.
The source: ASX announcement
