The Pro Medicus Limited (ASX: PME) share price is on course to end the week on a positive note.
In early trade, the health imaging technology company's shares were up 4.5% to $49.34.
The Pro Medicus share price has since pulled back but remains up by 2% currently.
Why is the Pro Medicus share price charging higher?
The catalyst for the rise in the Pro Medicus share price on Friday has been the announcement of a major new contract win.
According to the release, the company's US business, Visage Imaging, has signed a $32 million, eight-year contract with Inova Health System.
Inova is the leading non-profit healthcare provider in Northern Virginia. It has 20,000+ team members supporting more than two million patient visits each year through an integrated network of hospitals, primary, and specialty care practices, emergency and urgent care centres, outpatient services, and destination institutes.
The release notes that the agreement is based on a transactional licensing model and will see the company's Visage 7 Enterprise Imaging Platform implemented throughout Inova and Fairfax Radiology. This will provide a unified diagnostic imaging platform across both networks.
Pro Medicus advised that planning for the rollout is to commence immediately, with initial go-lives targeted for the second half of the calendar year.
The implementation will be fully deployed in the public cloud, which management notes is a favourable trend that has taken a foothold in the global healthcare IT market.
Management commentary
Pro Medicus CEO, Dr Sam Hupert, commented: "This is our fourth major contract in the IDN space in less than 18 months which further underpins the strong momentum we continue to build not only in this segment of market but also the North American market as a whole."
"Our pipeline remains strong. Deals like this confirm our view that Visage 7, with its proven cloud native technology provides us with a significant strategic advantage that addresses these opportunities across a growing segment of the market both in North America and other regions."
