The Pro Medicus Ltd (ASX: PME) share price has slipped 0.21% today despite the S&P/ASX 200 Index (ASX: XJO) healthcare stock announcing yet another impressive contract update.
The medical imaging software business has won several outstanding contracts in North America and Europe over the past few years. Today's announcement is more positive news for shareholders.
Full stock contract signed in the US
Pro Medicus advised that its US subsidiary, Visage Imaging, has signed an additional $24 million, five-year contract with NYU Langone Health, which the ASX 200 healthcare stock described as one of the most respected and innovative healthcare institutions in North America.
The contract is to extend to 'full stack' with the addition of Visage 7 Open Archive to the Visage 7 Viewer and Visage 7 Workflow. It will eventually see NYU Langone's entire current on-premise system move onto the cloud.
Pro Medicus also noted that the Visage 7 Viewer contract, signed in September 2020, has been extended for another year to 2029 as part of the deal.
Planning for the rollout will commence immediately and involve migrating NYU Langone's current archive to the Visage 7 Open Archive.
The contract is based on a transaction-based licensing model with potential upside.
The ASX 200 healthcare stock noted that this contract win continues its expansion of North American academic institutions.
Management comments
Pro Medicus CEO and co-founder Dr Sam Hupert said:
This is a significant deal for us as it confirms our belief that there is opportunity for us to sell our archive and worklist modules back to our 'viewer only' clients.
And, in time, we believe those customers with on premise solutions will join NYU and transition to cloud, a trend we see continuing.
Numerous wins
The company highlighted at its annual general meeting (AGM) that during the 2024 financial year, it had announced nine new contracts in North America. That included the largest contract to date, Baylor Scott & White, which has been fully live since mid-September, along with many others implemented during the year.
Pro Medicus has also announced two other significant client renewals since the start of FY25, with one in North America and another here in Australia, both at increased fee levels.
Earlier this week, the company noted that despite the number of new additions to its client base, new opportunities "continue to present themselves", and as a result, its pipeline "remains strong".
Pro Medicus share price
The Pro Medicus share price has climbed almost 140% in 2024 to date, as shown in the chart below.
