The Alcidion Group Ltd (ASX: ALC) share price is pushing higher on Tuesday following the release of a business update.
At the time of writing the healthcare technology company's shares are up 4.5% to 23 cents.
What did Alcidion announce?
Ahead of its investor roadshow in Sydney this morning, Alcidion released its presentation and a business update.
According to the release, the company has continued its positive run and signed two more new contracts during the current quarter. These contracts with Calvary Health Care and eHealth NSW have added a further $1 million of sold revenue that will be recognised in FY 2020.
Based on its sold revenue for FY 2020 of $15.4 million at the end of the first half, Alcidion's sold revenue now stands at $16.4 million. Which is just a touch short of its total FY 2019 revenue of $16.9 million, despite the majority of the second half still to come.
Pleasingly, management appears confident that favourable trends in the healthcare sector will be supportive of further growth. In its presentation it highlighted its increasing market opportunity.
One market it has its eyes on is the clinical decision support systems (CDSS) market. CDSS provide clinicians and staff with timely information at the point of care, to help inform decisions about patient care.
An estimated 400,000 lives are lost globally due to medical errors, with $1 trillion annual financial burden on hospitals globally.
This has led to a growing emphasis on adopting CDSS technology. As a result, BIS Research has forecast a 39% rise in the CDSS market over the next five years to US$2.8 billion. Management believes Alcidion can capitalise on this trend with its Miya solution. Miya is a real-time, clinical decision support system platform providing smart infrastructure for healthcare organisations.
Overall, management appears very confident on the future and notes that it has a "strong pipeline leading into financial year ends for UK, AU and NZ healthcare providers."
