The Pro Medicus Ltd (ASX: PME) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed yesterday trading for $237.17. In morning trade on Thursday, shares are swapping hands for $246.98 apiece, up 4.1%.
For some context, the ASX 200 is down 0.2% at this same time.
Here's what's piquing investor interest today.
What's boosting the ASX 200 healthcare stock today?
Investors are bidding up the Pro Medicus share price after the company announced another major new contract win.
The company reported that its wholly owned United States subsidiary, Visage Imaging, has signed a $20 million, five-year contract with the University of Iowa Health Care (UI Health Care).
According to the release, UI Health Care's clinical enterprise encompasses three patient campuses, including Stead Family Children's Hospital. The roughly 20,000 staff members include more than 1,200 physicians and dentists, nearly 800 resident and fellow physicians, and around 5,300 nursing staff.
The new contract will see Pro Medicus' cloud-based Visage 7 Enterprise Imaging Platform implemented throughout UI Health Care. The company noted that this will provide UI Health Care with a unified diagnostic imaging platform.
Pro Medicus said Visage will complete the migration from UI Health Care's legacy PACS archive to Visage 7 Open Archive. Visage 7 will also provide enterprise distribution of images integrated to UI Health Care's electronic health record.
With planning for the rollout set to start right away, Pro Medicus aims to go live in the fourth quarter of the 2025 calendar year.
What did management say?
Commenting on the new contract win helping to boost the Pro Medicus share price today, CEO Sam Hupert said, "University of Iowa Health Care is a highly respected healthcare institution that takes great pride in the comprehensive care they deliver to all Iowans."
Hupert added:
They 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 core Visage products, namely viewer, workflow and archive, a trend we see continuing.
Pro Medicus share price snapshot
With today's intraday boost factored in, the Pro Medicus share price is up 114.1% since this time last year.
