HeraMED (ASX:HMD) share price tanks despite US healthcare deal

The HeraMED Ltd (ASX: HMD) share price is tanking today despite signing a pilot deal with US healthcare player

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Doctor performing an ultrasound on pregnant woman

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The HeraMED Ltd (ASX: HMD) share price tanked today, closing 9% lower at 15 cents apiece.

This came despite the company signed a pilot deal with Obstetrix Medical, one of the USA’s largest women’s and children’s healthcare providers.

HeraMED and Obstetrix pilot agreement

HeraMED is a company focused on enhancing the digital resources available throughout the maternity process.

HeraMED’s pilot deal with Obstetrix links the company with US giant Mednax, of which Obstetrix is a subsidiary. Mednax provides maternity services to one in four babies across 39 US states.

Obstetrix is focused on providing birthing clinical services to obstetricians, including clinical research and a range of telehealth services.

Obstetrix has signed a pilot deal to evaluate HeraMED’s HeraCARE software and devices, which allow mothers to self-monitor their foetus’ heart rate, among other services. The deal involves the purchase of 100 HeraCARE licences.

HeraMED says that when the pilot program is complete, both companies aim to form a “comprehensive agreement” for further purchases.

HeraMED management comments

HeraMED CEO, David Groberman said:

We are delighted to have signed our first pilot agreement in the U.S. with a company of such significant status and scale. As a physician-led national medical group that partners with hospitals, health systems and health care facilities, focused exclusively on women’s and children’s care, Obstetrix Medical Group is a highly relevant partner and very well placed to support our commercialisation strategy.

Our focus remains on progressing the growing pipeline of potential partnerships, and HeraMED is well placed to capitalise on these opportunities and will update the market at the appropriate time.

HeraMED share price snapshot

The HeraMED share price has gained 24% in the past month and 40% this year to date. It’s traditionally been a fairly volatile share, and was just nine cents at the end of March this year.

However, a commercial agreement with Joondalup Health Campus saw the HeraMED share price hit 17.5 cents in mid-April before retreating again to its current price.

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Motley Fool contributor Lucas Radbourne-Pugh 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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