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

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrid end to the trading week.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Share Gainers

7 ASX 200 stocks racing higher in this week's sinking market

Investors sent these seven ASX 200 stocks flying higher despite this week’s big market retrace. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Catapult, DroneShield, Karoon Energy, and WiseTech shares are charging higher

These shares are ending the week with a bang. Let's find out why.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

Investors caught a break with a decent recovery from the markets today.

Read more »

Happy work colleagues give each other a fist pump.
Share Gainers

Why Endeavour, Lindian, Magellan, and WiseTech shares are storming higher today

These shares are catching the eye on Thursday. Let's see why they are rising.

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 calamitous session for investors this Wednesday.

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why EOS, GenusPlus, Life360, and WIA Gold shares are rising today

These shares are having a good session on hump day. But why?

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors were brought back to earth this Tuesday.

Read more »