The Pro Medicus Ltd (ASX: PME) share price is in focus after announcing its latest contract win – a big one.
Pro Medicus describes itself as a leading healthcare informatics company that provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare organisations around the world.
$90 million contract win
Pro Medicus revealed to the ASX today that it has signed a seven-year, A$90 million contract with Boston-based Beth Israel Lahey Health.
Beth Israel Lahey Health is a healthcare system that includes academic medical centres, teaching hospitals, community and specialty hospitals, together with 4,700 physicians and 39,000 employees. Beth Israel Lahey Health has 14 hospitals across Eastern Massachusetts and Southern New Hampshire.
This contract will see the company’s cloud-based Visage 7 Enterprise Imaging Platform installed, including Viewer, Workflow and Open Archive. This will give Beth Israel Lahey Health a unified diagnostic imaging platform.
Pro Medicus said planning for the rollout is to commence immediately, which will be based on Visage’s proven cloud-based implementation process, with the go-live targeted for the first quarter of the 2027 calendar year.
Management comments
The Pro Medicus CEO Dr Sam Hupert said:
Beth Israel Lahey Health provides extraordinary, cutting-edge patient care. They join an ever growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
Our pipeline remains strong and spans all market segments. This deal is for our ‘full stack’ comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing.
Final thoughts on the Pro Medicus share price
In my opinion, Pro Medicus remains one of the best businesses on the ASX, but the Pro Medicus share price has taken a beating.
It’s still not cheap on a price/earnings (P/E) ratio basis, but it’s a lot better value and the fact that it continues winning these large, multi-year contracts says to me that it’s doing the right things by customers. Plus, it still has extremely high profit margins.
I think it could be a solid long-term buy at the current level, particularly if it continues winning new contracts at the rate it has in 2026 so far.
