Pro Medicus (ASX:PME) Share Price Rises On Nines US Deal

The Pro Medicus (ASX: PME) share price is up after announcing a new US deal with Nines.

Pro Medicus is a Melbourne-based software owner and developer, licensing products to large US hospitals and Australian radiology clinics. The company has offices in Richmond, Victoria, Berlin, Germany and in the United States.

Pro Medicus Signs A Deal With Nines

Pro Medicus has announced this morning that its US subsidiary, Visage Imaging Inc has signed a 5-year, multi-million dollar contract with Nines, which is based in Palo Alto in California.

Visage 7 will be used as a cloud-based platform for Nine’s development of future radiology services. It will be hosted on the Google Cloud platform and will provide Nines with an “immensely scalable and highly optimised platform”.

Pro Medicus said it will be a transactional based model with potential upside as volumes grow. It also opens up potential for new radiology as a service market for Visage.

The five-year contract is based on committed exam volumes that step up each year along with the projected growth of the Nines offering in the market, which will result in base revenue to Pro Medicus of over $6 million over the life of the contract with “potential for significant upside.”

Implementation will begin in the next few weeks and will go live in early in the second quarter of the 2020 calendar year.

Pro Medicus CEO Dr Sam Hupert said: “The team behind Nines are incredibly well known and respected in machine learning, AI and radiology circles. Partnering with them will allow us to support their efforts to develop future products with our highly optimised Visage 7 cloud-based solution for on-demand reads.

This deal further validates our belief that our product can address a large percentage of the total addressable market in North America, ranging from smaller radiology partnerships through to some of the world’s largest, most sophisticated healthcare institutions and now our partnership with Nines is the next step in developing future services for high-quality remote reading/teleradiology.”

The Pro Medicus share price is currently up around 2%.

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