ASX stock of the day: Why Oneview Healthcare (ASX:ONE) shares are rocketing 140% today

The Oneview Healthcare PLC (ASX: ONE) share price is on fire today, having rocketed nearly 140% at the time of writing. Here’s why.

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Oneview Healthcare PLC (ASX: ONE) shares are on fire today, rocketing almost 140% at the time of writing to 10 cents per share. The Oneview share price finished up trading on Friday at just 4.2 cents, but opened this morning at 5 cents before climbing as high as 12 cents soon after open. Even though Oneview shares have since cooled from these highs, a nearly 140% intra-day return is still one for the books.

So what is Oneview Healthcare? And (perhaps more importantly) why are Oneview shares worth 140% more today than they were last week?

One-view to a room

Oneview Healthcare is a healthcare company (shocking, I know) that aims to “build technology that fosters holistic, relationship-centred care”. The company was founded in 2012 and is listed on the ASX, but incorporated in Ireland (hence the ‘plc’). Oneview operates a software-as-a-service (Saas) business model. It sells access to its software platforms, which help healthcare workers deliver better and more tailored bedside care, including to “support COVID-19 response”.

Patients and carers can use the software for performing functions like ordering customised meals, video chatting with family or friends, requesting medical attention, accessing entertainment services, and communicating with others for telehealth appointments and similar consultations.

The company’s software is used across the United States, Australia, the Middle East and Asia in 55 hospitals spanning 18 different cities. Oneview lists New South Wales Health, Queensland Health, and The Sydney Children’s Hospital Network as customers, as well as several large US clients.

Back in August, Oneview reported that the number of beds equipped with its software had grown by 30% year on year in the first half of 2020. It also reported recurring revenue was up 21% to 2.6 million euros. It wasn’t all good news though, total revenues fell 15% year on year, largely due to the impact of the pandemic.

Why are Oneview shares racing higher today?

Today’s stunning moves in the Oneview share price appear to be the result of a company announcement released to the ASX this morning just before market open. In the release, Oneview told investors the company has signed a “distribution agreement” with Samsung SDS America Inc (Samsung SDSA), which is “the enterprise IT solutions provider of Samsung“, to offer a “bundled solution for bedside digital services for patients in the United States”.

This agreement will reportedly allow Samsung SDSA to distribute Oneview’s Cloud Start product to “healthcare-focused enterprise resellers” beginning this month. Cloud Start runs exclusively on Samsung tablets and was reportedly deployed across four hospitals in New York at the “height of the pandemic” last year. Evidently, the company’s technology was well-received.

Oneview CEO James Fitter had this to say on the deal: 

Our move to the cloud accelerates speed to market and opens new possibilities for distribution, making it faster, easier and lower-cost for end-customers to benefit from the digital platform at the bedside. Never has this need been so apparent. Our partnership with Samsung provides a unique opportunity to address new virtual models of care and provide the solution for Samsung SDSA to enhance the value proposition for their reseller network.

Clearly, this agreement has investors pretty excited, judging by today’s eye-popping gains in the Oneview share price.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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