The Pro Medicus Limited (ASX: PME) share price has soared to a new all-time high of $59.90 during intraday trade today.
At the time of writing, the shares have partially retreated and are swapping hands for $59.48, still up 3.48% on yesterday's closing price.
The medical imaging company has been a standout performer on the S&P/ASX 200 Index (ASX: XJO) in 2021.
The Pro Medicus share price was also the best performing on the S&P/ASX 200 Health Care Index (ASX: XHJ) during FY21. The company's shares started the financial year at $26.46 and ended at $58.72, reflecting a 122% gain.
They have gained more than 70% year to date, and more than 140% in the last 12 months.
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What's been fuelling the Pro Medicus share price?
The initial catalyst that sparked the Pro Medicus share price can be traced back to January.
The company announced it had signed a 7-year contract with Intermountain Healthcare in Salt Lake City. The transactional licensing contract is estimated to be worth about $40 million over the period. As a result, Pro Medicus will implement its Visage 7 Viewer and Visage 7 Open Archive products across all radiology and subspecialty imaging departments.
The second catalyst that moved the Pro Medicus share price this year came in mid-May.
Pro Medicus announced its wholly owned US subsidiary, Visage Imaging, had signed a deal with the University of Vermont (UVM). The contract will see Pro Medicus implement its products across 6 hospitals operated by UVM. The contract is estimated to generate $14 million over an 8-year period.
In addition, the company's subsidiary also entered into a multi-year research agreement with the Mayo Clinic. Under the agreement, the two parties will develop and commercialise artificial intelligence for the medical imaging sector.
More on Pro Medicus
Pro Medicus is a medical imaging company that offers its products and services to hospitals and imaging companies.
The company is a leading provider of radiology information systems (RIS), and picture archiving and communication systems (PACS).
Pro Medicus has also been on the end of favourable broker coverage. Most recently, analysts at Bell Potter retained a 'hold' rating on the company.
Analysts noted that Pro Medicus could accrue a minimum of $146 million in revenues over the next 5 to 8 years. In addition, the research note highlighted that Pro Medicus holds a 3% to 5% share of the radiology market. As a result, the company could be poised for further expansion in the future.
