ASX healthcare stock Alcidion Group Ltd (ASX: ALC) is racing ahead today despite the 0.03% declines posted by the All Ordinaries Index (ASX: XAO).
Shares in the healthcare technology company closed yesterday trading at 8.4 cents. At the time of writing in midday trade on Friday, they are changing hands for 10.5 cents apiece, up 25.0%.
Here's what's grabbing investor interest.
ASX healthcare stock soars on contract win
Investors are bidding up the ASX healthcare stock after the company reported it has secured a long-term contract with North Cumbria Integrated Care NHS Foundation Trust (NCIC) in the United Kingdom.
NCIC provides hospital and community health services to around half a million people.
The contract is for use of Alcidion's Miya Precision platform to provide an Electronic Patient Record (EPR) to the Trust.
Alcidion said its modular EPR will enhance digital maturity and support clinicians to deliver high-quality safe patient care.
The total contract value (TCV) is approximately $37.5 million (£19.0 million) over a contract term of 10 years, with options to extend.
Likely spurring investor enthusiasm, the ASX healthcare stock said deployment of its Miya Precision platform will commence immediately. The company expects to recognise $8.0 million to $9.0 million from the new contract in FY 2025.
Alcidion noted that the new agreement with NCIC extends its market footprint in North East North Cumbria, with two other NHS trusts in the region also using its modules.
What did management say?
Commenting on the new agreement sending the ASX healthcare stock soaring today, Alcidion CEO Kate Quirke said, "Securing this long-term contract with North Cumbria Integrated Care is a significant step for the Trust and demonstrates the value a modern, modular EPR platform can bring to healthcare systems."
Quirke added:
Miya Precision has a strong reputation for supporting clinicians to digitise their workflows and improve care outcomes for patients, and we are excited to deliver this for NCIC.
For Alcidion, this contract represents a key milestone in our efforts to support major healthcare providers with market-leading digital health solutions.
The emergence of smarter, more focused electronic patient records infrastructure is being widely accepted as an essential part of clinical workflow and patient care, globally, and we remain committed to continuous improvement and world-class innovation in this space.
Adrian Clements, executive medical director of NCIC, added, "By integrating cutting-edge technology, we are not just keeping pace with modern healthcare, but setting a standard for safer, smarter, and more efficient care delivery."
With today's big boost in the Alcidion share price factored in, the ASX healthcare stock is up 110% since this time last year.
