The Alcidion Group Ltd (ASX: ALC) share price has jumped 10.35% to 16 cents per share.
This comes after the company announced a new contract with Sydney Local Health District (Sydney LHD) for the implementation of its Miya Precision platform. The technology will be used to assist in the delivery of virtual health care.
What did Alcidion announce?
The Miya Precision platform will be used to virtually treat patients that have tested positive to COVID-19. This limits the risk to staff while also reducing the need for personal protective equipment. It will allow staff to monitor and communicate with patients remotely while they are in home isolation. The contract will be in place for an initial 12 month period and is valued at $560,000.
Sydney LHD has around 12,000 staff and is responsible for the health of more than 700,000 people. It operates Prince Alfred and Concord Hospitals, as well as its virtual hospital, rpavirtual.
The announcement stated;
"While rpavirtual is currently focused on supporting Sydney LHD's response to the COVID-19 outbreak, after the current emergency situation passes, this innovative model of care will revert to providing essential monitoring of selected patients with chronic conditions from community facilities or their homes. This is part of a world wide trend towards using virtual care to improve patient outcomes and experience while reducing pressure on hospital facilities."
The contract will allow the health service to integrate their devices along with electronic medical records in their rpavirtual hospital for a period of 12 months.
Alcidion Managing Director, Kate Quirke stated; "We are delighted to enter this partnership with Sydney LHD. We have moved quickly to enable an initial rollout that addresses the short term challenges raised by COVID-19. This engagement allows us to demonstrate the value of our platform in one of the busiest hospitals in Australia."
About the Alcidion Group share price
Alcidion develops and licenses 3 core healthcare software products: Miya Precision, Patientrack and Smartpage. It also resells other healthcare software products in Australia, New Zealand and the United Kingdom (UK).
In April, Alcidion released its Q3 FY2020 business update citing a solid performance amidst COVID-19 pandemic.
The company reported that at 31 March 2020, sold revenue to be recognised in FY2020 was $17.2 million, exceeding the total FY2019 full year revenue of $16.9M. Of this sold revenue, $10 million was recurring revenue, representing a 37% increase on Q3 FY2019.
Since the start of January, Alcidion reports that it has signed several significant new contracts, including;
- Townsville Hospital and Health Service contract to implement Smartpage;
- The implementation of a data warehouse across all Calvary Health Care sites;
- Systems integration contract for national Digital Pregnancy Health Record pilot; and
- Murrumbidgee LHD to expand and extend use of Miya Precision and Miya MEMRe.
Last month, Alcidion Group Limited was added to the All Ordinaries (INDEXASX: XAO) and has a market capitalisation of around $158 million.
The Alcidion Group share price is up 65% from its 52 week low of $0.097 cents. It has dropped 13.5% since the beginning of January. However, the Alcidion share price has increased by 23% since this time last year.
