Pro Medicus Limited (ASX: PME) shares are catching the eye on Tuesday.
In morning trade, the health imaging technology company's shares are up 4% to a new record high of $281.25.
This follows the release of an announcement before the market open.
Pro Medicus shares hit record high
Investors have been bidding up this high-flying tech stock again on Tuesday after it announced another major contract win.
According to the release, its Visage Imaging business has signed a seven-year contract with BayCare. It is the leading health care system in the Tampa Bay and central Florida regions of the United States.
Management advised that BayCare connects individuals and families to a wide range of services at 16 hospitals and hundreds of other convenient locations.
The system is West Central Florida's largest provider of behavioural health and paediatric services and its provider group, BayCare Medical Group, is one of the largest in the region.
BayCare's diverse network of ambulatory services includes laboratories, imaging, surgical centres, BayCare Urgent Care locations, wellness centres and one of Florida's largest home care agencies, BayCare HomeCare.
In addition, BayCare's graduate medical education programs are expanding to help ensure West Central Florida and BayCare continue to attract the best physicians. By mid-2025, it will be operating 18 programs with 283 residents and has committed to expand to 650 residents by 2029.
In total, BayCare has more than 32,000 team members, including more than 800 employed physicians.
$53 million contract
Pro Medicus notes that the contract is worth a total of $53 million over the seven years and is based on a transactional licensing model. It will see its cloud-based Visage 7 Enterprise Imaging Platform, including Visage 7 Viewer and Visage 7 Workflow modules, implemented throughout BayCare. This will provide the health care system with a unified diagnostic imaging platform.
Management advised that planning for the rollout is to commence immediately and will be based on Visage's proven cloud-based implementation process. It will have a go-live date targeted for late third quarter/fourth quarter of the 2025 calendar year.
Pro Medicus CEO, Dr Sam Hupert, was pleased with the contract win. He said:
BayCare joins our rapidly growing list of integrated delivery network (IDN) clients. They also join the 70% of all Visage 7 North American clients to opt for a cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
And once again, Dr Hupert reiterated that there are plenty more potential contracts in its pipeline. He said:
Our pipeline remains strong and spans all market segments.
Pro Medicus shares are now up almost 160% since this time last year.
