Pro Medicus Limited (ASX: PME) shares are having a good start to the session.
In morning trade, the ASX 200 healthcare stock is up 3% to $261.50.
This builds on the 160% gain the health imaging technology company's shares had already recorded over the past 12 months.
Image source: Getty Images
Why is this ASX 200 healthcare stock surging?
Investors have been bidding the Pro Medicus share price higher today for a couple of reasons.
One reason is that Wall Street rallied higher overnight thanks to the release of favourable inflation data. This is giving the whole market a big boost this morning.
In addition, investors are responding positively to the release of an announcement from the ASX 200 healthcare stock today.
According to the release, the company has signed a $33 million, 9-year contract with the University of Kentucky (UK). It is the preeminent academic health system in the state of Kentucky.
The company notes that UK HealthCare is a comprehensive healthcare system that includes a network of hospitals, clinics, and specialised medical services. It is anchored by the UK Albert B. Chandler Hospital, which is a leading medical facility in the region, offering advanced treatment options and cutting-edge research.
It also highlights that the system includes the UK Good Samaritan Hospital, which provides a range of services including emergency care, surgery, and rehabilitation. Furthermore, it is affiliated with the University of Kentucky College of Medicine, ensuring a strong emphasis on education, research, and innovation.
What's the contract?
The release reveals that the contract is based on a transactional licensing model and will see the company's cloud-based Visage 7 Enterprise Imaging Platform, including Visage 7 Open Archive and Visage 7 Workflow modules, implemented throughout UK providing a unified diagnostic imaging platform.
Visage will complete the migration from UK's legacy PACS archive and vendor neutral archive to Visage 7 Open Archive. Visage 7 will also provide enterprise distribution of images integrated to UK's electronic health record (EHR).
Commenting on this latest contract win, the ASX 200 healthcare stock's CEO, Dr Sam Hupert, said:
University of Kentucky joins our growing list of academic clients. They also join a long list of Visage 7 clients to opt for a fully cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
Our pipeline remains strong and spans all market segments. As has been the case with many of our recent contracts, this deal is for our "full stack" comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.
