The Pro Medicus Limited (ASX: PME) share price is falling by the wayside today regardless of the company announcing a positive update.
At the time of writing, Pro Medicus shares are down 1.25% to $53.93. This means that its shares have now dropped 10.5% in a month.
What's dragging Pro Medicus shares lower?
A catalyst for the Pro Medicus share price falling into the red today is the broader market weakness.
The S&P/ASX 200 Index (ASX: XJO) is tumbling 1.72% lower to 7,205 points following the Dow Jones' heavy losses overnight.
In today's statement, Pro Medicus advised its wholly-owned United States (US) subsidiary, Visage Imaging, Inc has signed its equal-largest contract to date.
The 7-year, $40 million deal is with US leading healthcare provider, Novant Health.
Headquartered in North Carolina, Novant Health is a community-based integrated delivery network (IDN) that spans three states.
The company services 6 million patients annually across 15 medical centres and hundreds of outpatient facilities and physician clinics.
Based on a transactional licensing model, the contract will see Pro Medicus' Visage products implemented throughout Novant Health. This includes its Visage 7 Enterprise Imaging Platform and Visage 7 Workflow module.
The suite will be employed in the Microsoft Azure cloud, delivering a unified diagnostic imaging platform across the network.
Planning for the rollout is to commence immediately, with initial go-lives targeted for the second half of the financial year.
The latest deal represents Pro Medicus' seventh major North American contract in less than 18 months.
The health imaging software company has doubled down on its efforts to rapidly grow in the North American market.
Novant Health joins an increasing number of Visage clients that opt for a fully cloud-based solution. This is a rising trend amongst healthcare providers across the US.
Management commentary
Pro Medicus CEO, Dr Sam Hupert said:
… Like several of our other recent deals, it includes more than one of our products, in this case, Visage 7 Workflow as well as Visage 7 Viewer, validating our strategy of providing clients maximum flexibility by offering a highly modular, multi-product solution.
Our pipeline remains strong. Deals like this confirm our view that Visage 7, with its proven cloud-native technology and modular design, provides us with a significant strategic advantage that enables us to address opportunities across a growing segment of the market both in North America and other regions.
About the Pro Medicus share price
Over the past 12 months, Pro Medicus shares have accelerated to post a 102% gain, with year-to-date up 53%.
The company is trading on a price-to-earnings (P/E) ratio of 185.15 and commands a market capitalisation of roughly $5.7 billion.
