The Pro Medicus Ltd (ASX: PME) share price is racing higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed yesterday trading for $285.20. In morning trade on Thursday, shares are changing hands for $308.87 apiece, up 8.3%.
This sees the Pro Medicus share price up a whopping 126.5% over 12 months.
For some context, the ASX 200 is down 0.1% today and up 11.0% in a year.
Today's outperformance follows on news of two new major contract wins for the company's Visage Imaging Platform.
Both new contracts were signed by Pro Medicus' wholly owned United States subsidiary, Visage Imaging.
Pro Medicus share price leaps on contract wins
The first announcement that looks to be supporting the Pro Medicus share price today is the renewal of a five-year contract and a new Visage 7 Open Archive contract the company inked with Franciscan Missionaries of Our Lady Health System, based in the US state of Louisiana.
The company said the contract with FMOLHS has a minimum value of $20 million. Both the renewal and Visage 7 Open Archive contracts are transaction-based.
"This deal confirms our belief that there is a material opportunity for us to sell Visage 7 Open Archive to our existing base of 'viewer only' clients," Pro Medicus CEO Sam Hupert said.
"Over time, we believe those customers with on premise implementations will join FMOLHS and a growing number of existing clients in transitioning to cloud, a trend we see continuing," he added.
What other new contract did the ASX 200 healthcare stock announce?
The Pro Medicus share price is also catching tailwinds from a second new contract win.
Management reported that the company has signed a $170 million, 10-year contract with UCHealth, based in the US state of Colorado.
According to the release, UCHealth spans a network of 14 hospitals, with affiliate hospitals, clinic locations, and health care providers throughout Colorado, Wyoming, and western Nebraska.
The new contract will see the ASX 200 healthcare stock's cloud-based Visage 7 Enterprise Imaging Platform implemented throughout UCHealth, which the company noted will provide a single, unified enterprise imaging platform.
Commenting on the contract with UCHealth that's helping boost the Pro Medicus share price today, Hupert said:
They join an ever-growing list of Visage 7 clients to opt for our fully cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
Looking ahead, he added:
Our pipeline remains strong and spans all market segments. There is growing interest in our 'full stack' solution comprising all three core Visage products, viewer, workflow, and archive with the added option of 'other ologies' such as cardiology.
