Pro Medicus share price jumps on $32m contract news

Pro Medicus shares are pushing higher on Friday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Pro Medicus shares are pushing higher today following a major contract win
  • The company has signed a $32 million, eight-year contract with Inova Health System
  • The deal will see the company’s Visage 7 Enterprise Imaging Platform implemented throughout Inova and Fairfax Radiology via the cloud

The Pro Medicus Limited (ASX: PME) share price is on course to end the week on a positive note.

In early trade, the health imaging technology company's shares were up 4.5% to $49.34.

The Pro Medicus share price has since pulled back but remains up by 2% currently.

Doctor looks at a graph on a tablet.

Image source: Getty Images

Why is the Pro Medicus share price charging higher?

The catalyst for the rise in the Pro Medicus share price on Friday has been the announcement of a major new contract win.

According to the release, the company's US business, Visage Imaging, has signed a $32 million, eight-year contract with Inova Health System.

Inova is the leading non-profit healthcare provider in Northern Virginia. It has 20,000+ team members supporting more than two million patient visits each year through an integrated network of hospitals, primary, and specialty care practices, emergency and urgent care centres, outpatient services, and destination institutes.

The release notes that the agreement is based on a transactional licensing model and will see the company's Visage 7 Enterprise Imaging Platform implemented throughout Inova and Fairfax Radiology. This will provide a unified diagnostic imaging platform across both networks.

Pro Medicus advised that planning for the rollout is to commence immediately, with initial go-lives targeted for the second half of the calendar year.

The implementation will be fully deployed in the public cloud, which management notes is a favourable trend that has taken a foothold in the global healthcare IT market.

Management commentary

Pro Medicus CEO, Dr Sam Hupert, commented: "This is our fourth major contract in the IDN space in less than 18 months which further underpins the strong momentum we continue to build not only in this segment of market but also the North American market as a whole."

"Our pipeline remains strong. Deals like this confirm our view that Visage 7, with its proven cloud native technology provides us with a significant strategic advantage that addresses these opportunities across a growing segment of the market both in North America and other regions."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A woman wearing yellow smiles and drinks coffee while on laptop.
Technology Shares

The ASX 200 shares I think smart investors are buying after the tech selloff

The recent pullback has changed the conversation around several ASX 200 growth shares.

Read more »

Smiling young parents with their daughter dream of success.
Technology Shares

Here's why Life360 shares could rise a massive 75%

Big returns could be coming for buyers of this tech stock according to Bell Potter.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Technology Shares

3 reasons to buy Xero shares now

This beaten down tech stock could be worth considering. Let's see why.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
52-Week Lows

Down 43% this year, this ASX tech stock is now back at January 2025 levels

Megaport shares are down 43% this year as weak momentum continues.

Read more »

A judge bangs down the gavel.
Technology Shares

Why are shares in this ASX defence company tanking today?

They've received more than just a slap on the wrist.

Read more »

A boy holds on tight as his gaming console nearly blows him away.
Technology Shares

This ASX tech firm presents a "unique" opportunity, Shaw and Partners says

A major game launch is just days away.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Technology Shares

DroneShield shares rebound on investor update

The counter-drone technology company has released an update.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Technology Shares

Should you buy the 20% dip in the DroneShield share price?

This high-flying stock is having its wings clipped on Wednesday.

Read more »