The All Ordinaries Index (ASX: XAO) is down 0.14% in morning trade, but a little-known ASX healthcare stock is charging in the other direction.
Shares in the healthcare technology company closed yesterday at 5.5 cents and were trading at 8.0 cents apiece after market open today, putting the stock up a blistering 45.5%. After some likely profit-taking, shares are currently changing hands for 6.6 cents, up 20%.
Any guesses?
If you said Alcidion Group Ltd (ASX: ALC), give yourself a virtual gold star.
Here's why investors are sending the ASX healthcare stock flying higher today.
Image source: Getty Images
What's boosting the ASX healthcare stock?
Alcidion is rocketing after the company announced that the North Cumbria Integrated Care NHS Foundation Trust (NCIC) has selected Alcidion as the preferred supplier by for its new Electronic Patient Record (EPR) system.
Located in the United Kingdom, North Cumbria provides hospital and community healthcare for approximately half a million people. The foundation operates across two acute care hospitals, eight community-based hospitals, eight Integrated Care Communities and several support staff locations.
The ASX healthcare stock will provide its Miya Precision platform, including Silverlink PCS, which is already live at NCIC. Alcidion said this will provide clinicians with real-time access to patient records while streamlining patient flow and improving clinical decision-making processes.
Subject to successful negotiation, Alcidion expects this to be a 10-year contract utilising the full Miya Precision product suite along with partner applications.
The total contract value (TCV) remains under negotiation, but Alcidion said it's likely to be between $30 million and $40 million over 10 years.
Alcidion is targeting deployment in the first quarter of calendar year 2025.
What did management say?
Commenting on the contract sending the ASX healthcare stock rocketing today, Alcidion managing director Kate Quirke said, "We are excited to build upon our existing relationship with NCIC by being selected as their preferred EPR supplier."
Quirke continued:
The Alcidion approach of providing an integrated, modular EPR offering allows NCIC to develop their existing digital footprint, protecting their existing investments and allowing them to realise the benefits of additional clinical capabilities such as electronic noting and integrated observations through integration with a number of existing systems.
At a time when the healthcare system is under enormous pressure, we see this increased speed to deliver value as a real opportunity for our customers.
Adrian Clements, executive medical director at NCIC, added:
Over the last few months, many of us have spent a great amount of time evaluating the various Electronic Patient Record systems in order to reach the correct conclusion to help us implement the best possible dynamic EPR system.
I feel assured and confident that selecting Alcidion will allow us to implement an EPR that enables high quality patient care, improves clinical safety and saves clinicians' valuable time.
With today's intraday gains factored in, the ASX healthcare stock is down 10% year to date.
