Why the Alcidion (ASX:ALC) share price is rocketing 11% higher

Alcidion shares are on fire today…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Alcidion Group Ltd (ASX: ALC) share price is on course to end the week on a very positive note.

In morning trade, the healthcare technology company's shares are up 11% to 35 cents.

Vanadium Resources share price person riding rocket indicating share price increase

Image source: Getty Images

Why is the Alcidion share price rocketing higher?

Investors have been bidding the Alcidion share price higher today after its consortium won a major contract.

According to the release, the consortium, which is led by Leidos Australia, has been awarded a contract to provide components of an enterprise Health IT Project for the Commonwealth of Australia.

Alcidion will provide the Longitudinal Health Record via its Miya Precision product. The Miya Precision platform will aggregate data from consortium partner solutions and other systems in the environment to establish a consolidated view of every participant health status and history.

The project commencement is planned for December 2021.

What's the contract worth?

The release notes that the value of Alcidion's contract is estimated to be $23.3 million over six years. This will cover implementation and a subscription to the Miya Precision platform.

However, further options to take up Miya Observations and Assessments and options to renew up to 15 years creates a possible total contract value (TCV) for the contract with Leidos of around $50 million.

Alcidion's Managing Director and CEO, Kate Quirke, appeared pleased with the news.

She commented: "Alcidion looks forward to working with Leidos and our Consortium partners to deliver this significant project. The scale and scope are a validation of Miya Precision's existing capability to provide this critically important longitudinal health record."

The Alcidion share price has been a very strong performer this year. Following today's gain, the company's shares are now up an impressive 88% since the start of the year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre end to the trading week this Friday...

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Gainers

3 ASX 200 stocks storming higher in this week's sinking market

Investors sent these three ASX 200 stocks surging in this week’s tumbling market. But why?

Read more »

Worker on a laptop in front of an energy storage system in a factory.
Share Gainers

This ASX stock just landed a $110 million battery project. Shares near record highs.

Genusplus shares lift after a $110 million battery project win in South Australia...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today

These shares are ending the week on a high. But why?

Read more »

Three brightly coloured objects against a backdrop of blue, indication three winning ASX share prices
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre session on the ASX this Thursday.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Share Gainers

Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today

These shares are catching the eye on Thursday. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a very unhappy hump day on the markets.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Ampol, Meteoric Resources, Praemium, and Treasury Wine shares are storming higher

These shares are having a better day than most on hump day. But why?

Read more »