The Pro Medicus Ltd (ASX: PME) share price is up more than 2% after announcing another contract win.
Pro Medicus provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups.
US contract win
Pro Medicus announced that it has signed a seven-year, A$43 million contract with Virtua Health, which is based in South Jersey (New Jersey).
Virtua is an academic health system that provides a full spectrum of advanced, accessible and trusted healthcare services. Virtua has 15,000 colleagues, as well as 3,000 affiliated doctors and clinicians, providing care across five hospitals.
The ASX share said that Virtua is academically affiliated with Rowan University, Penn Medicine and the Children’s Hospital of Philadelphia.
Based on a transactional licensing model, the contract is for the Visage 7 Enterprise Imaging Platform, including Visage 7 Viewer, Visage 7 Workflow, Visage 7 Open Archive and Visage 7 Cardiology Imaging. Visage 7 will also provide enterprise distribution of images integrated to Virtua’s electronic health record (EHR).
Planning for the rollout is to start immediately, with the go-live targeted for late Q2 or early Q3 in the 2027 calendar year.
Management comments
The Pro Medicus CEO Dr Sam Hupert said:
Virtua provides outstanding, innovative care to all of South Jersey. 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.
Notably, they have also opted for our cardiology offering which will provide Virtua with a truly unified enterprise imaging solution, a trend we see continuing as more and more healthcare enterprises look to consolidate their disparate imaging systems.
Our pipeline remains strong and spans all market segments. There is growing interest in our ‘full stack’ solution comprising all three core Visage products, namely viewer, workflow and archive, with the added option of other “ologies”, such as cardiology.
Final thoughts on the Pro Medicus share price
The company is 36% cheaper than it was a year ago, yet it’s generating much more profit, so its valuation looks much more reasonable.
With how it continues to win significant contracts, I think it could be an attractive long-term buy, particularly if it’s able to retain existing clients at higher transaction rates.
I think it’s one of the best ASX growth shares around to consider.
