Pro Medicus Ltd (ASX: PME) shares are starting the week in a positive fashion.
In morning trade on Monday, the health imaging technology company's shares are up 3% to $256.18.
This compares favourably to the performance of the broader market, with the ASX 200 index down 0.2% in early trade to 8,615.1 points.
Why are Pro Medicus shares rising?
Investors have been fighting to get hold of the ASX 200 tech stock this morning after it announced a major contract win.
According to the release, its wholly owned U.S. subsidiary, Visage Imaging Inc, has signed a five-year contract worth A$44 million with Advanced Radiology Management.
The release notes that Advanced Radiology Management is a leading private radiology reading group. It is synonymous with quality, innovation, and collaboration with a practice culture dedicated to exceptional patient care according to the company.
Based on a transactional licensing model, the contract will see Pro Medicus' cloud-based Visage 7 Enterprise Imaging Platform, including Visage 7 Viewer, implemented across Advanced Radiology Management. This will provide a single, unified enterprise imaging platform for diagnostic interpretation.
Management advised that planning for the rollout is to commence immediately. This rollout will be based on Visage's proven cloud-based implementation process, with a go-live date targeted for late in the second quarter of the 2026 calendar year.
Commenting on the contract win, the ASX 200 tech stock's CEO, Dr Sam Hupert, said:
Advanced Radiology Management is a highly regarded remote reading radiology group that provides innovative, high-quality patient care. They join an ever-growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
A shortage of radiologists – expected to worsen in North America and worldwide – has pressured providers to interpret more imaging studies in less time, further exacerbating provider burnout. Private practice groups such as Advanced Radiology Management appreciate our proven ability to increase radiologist efficiency within hours of going live, thereby bringing much-needed relief to the mounting demands radiologists face.
Dr Hupert also spoke positively about the company's outlook, highlighting that its sales pipeline remains strong. He concludes:
Our pipeline remains strong and spans all market segments, including the private radiology market that continues to grow strongly for us.
