The Alcidion Group Ltd (ASX: ALC) share price has started the week with a bang.
In morning trade the healthcare technology company's shares are up a massive 38% to 17.2 cents.
Why is the Alcidion share price zooming higher?
Investors have been buying the company's shares this morning after it announced a major new contract win in the United Kingdom.
According to the release, Alcidion has signed a deal with South Tees Hospitals NHS Foundation Trust for its Miya Precision solution and the Better OPENeP electronic prescribing and medicines administration (ePMA) system.
South Tees is the largest hospital trust in Tees Valley in the United Kingdom, with over 1,000 beds and employing approximately 9,000 clinical and operational staff and providing care for more than 1.5 million people.
Management notes that this is the largest Miya Precision contract Alcidion has signed to date and estimates that the whole deal is worth $9.47 million (5.15 million pounds) over five years.
Approximately $0.96 million is to be recognised as product implementation (one-off) revenue, with the remaining $8.51 million representing recurring product (licence, maintenance, and support) revenue.
The company intends to recognise $5.48 million of the total contract value as revenue in FY 2021, subject to milestone achievement.
This means that the total revenue able to be recognised in FY 2021 now sits at $20.2 million. This compares to $18.6 million in FY 2020, with seven months of the year remaining.
What are Miya Precision and Better OPENeP?
The Miya Precision product will enable South Tees to digitise patient care processes and records.
It will also provide a trust-wide orchestration layer to integrate this new clinical data with patient data in existing trust systems using the FHIR standard for data interchange.
This means information currently held in disparate systems can be consolidated and represented in a common format for application of artificial intelligence and use in advanced clinical decision support.
The Better OPENeP solution is a next generation ePMA system and will allow the trust to digitise its prescribing and medicines administration processes.
The solutions will launch concurrently at the trust in the first phase of the technology deployment. This allows for seamless integration between electronic observations, digital patient assessments, care planning and medication processes.
Alcidion's managing director, Kate Quirke, commented: "Clinical staff working across South Tees will be among the first in the UK to benefit from our range of healthcare technologies that have been specifically built to make the right thing to do, the easiest thing to do, even during the busiest of times."
"It is extremely rewarding to see South Tees enter into this agreement so soon after we formally launched Miya Precision as the first smart clinical asset for the NHS. The NHS remains one of our most significant partners anywhere in the world, and I look forward to driving forward this new partnership for the benefit of staff and patients at the trust," she added.
