Why this exciting ASX 200 tech share is pushing higher on Monday

The Pro Medicus Limited (ASX:PME) share price is pushing higher on Monday after the release of a positive update. Here’s what you need to know…

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The Pro Medicus Limited (ASX: PME) share price has been a positive performer on Monday.

In morning trade the healthcare imaging software and services provider’s shares are up 1.5% to $29.25.

Why is the Pro Medicus share price pushing higher today?

Investors have been buying the company’s shares on Monday after it announced a major contract win with Northwestern Memorial HealthCare.

According to the release, Pro Medicus has signed a five-year, A$22 million deal with the Chicago-based healthcare company for its Visage 7 technology.

Visage 7 is an enterprise imaging platform that delivers fast, multi-dimensional images streamed via an intelligent thin-client viewer.

Todays’ deal extends the company’s footprint in the U.S. academic hospital segment, as well as regionally based community hospitals.

An important deal.

Pro Medicus’ Chief Executive Officer, Dr. Sam Hupert, believes this is one of the most important deals the company has signed.

He commented: “This certainly ranks up there as one of our most important not only because of the size of the deal, but also because of Northwestern’s standing in the medical and medical research communities. It will also provide us with a key reference site in the Chicago area.”

The good news for shareholders is that there may be more deals on the way. Dr Hupert revealed that its pipeline remains strong.

Commenting on other potential deals that are in the works, he said: “Some are looking at multiple products such as using Visage 7 Open Archive in addition to our Viewer, and there are also those who have expressed a preference for Cloud, so it is a good mix.”

Though, he has warned that it can take time for deals to be closed. In some cases, the whole process can take two years or even longer.

Another positive was that Pro Medicus has not experienced any major disruption from the pandemic.

Speaking about the pandemic, Dr Hupert said: “Up to now, we have not experienced any material deferral or delay in progressing any of these opportunities, Northwestern being a case in point. Our pipeline remains strong and, subject to there not being a second wave, we have a number of good opportunities across various sectors of the market that are continuing to progress through the sales cycle.”

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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