This ASX technology company's shares are surging more than 20% on a new contract win

A new contract win has this company's management "excited".

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Shares in Alcidion Group Ltd (ASX: ALC) are more than 20% higher after the company said it had been selected as the preferred supplier for a UK hospital group.

The technology company said University Hospitals Sussex NHS Foundation Trust (UHSx) had selected Alcidion as its preferred supplier for its new electronic patient record system.

The company said UHSx was a substantial healthcare provider in the UK.

UHSx is located in the south of the UK and forms part of the Sussex Integrated Care System (ICS). They provide hospital and community health care for approximately a million people in Sussex. It is one of the largest acute trusts in the UK, with seven hospitals hosting more than 1.5 million outpatient appointments, A&E visits and surgery cases annually, employing nearly 20,000 staff.

Alcidion said it would deploy its flagship Miya Precision platform, "including Miya Observations and Assessments (Patientrack), which is already live at the Trust''.

The company went on to say:

The EPR solution will provide clinicians real-time access to patient records whilst streamlining patient flow and improving clinical decision making processes. Following a competitive tender process, we will now finalise the contract prior to commencing deployment of Miya Precision which is expected to commence in Q4 FY26.

Doctor checking patient's spine x-ray image.

Image source: Getty Images

ASX technology share gaining momentum 

Alcidion Managing Director Kate Quirke said the company was "excited" to provide the expanded platform to UHSx.

This builds on a long-standing relationship Alcidion have with UHSx where they have been using Miya Observations and Assessments (Patientrack) for many years. UHSx's purpose for the EPR procurement is to implement a single, integrated digital platform that improves patient care, supports regional integration, drives operational efficiency, and delivers long-term social and research benefits. Miya Precision is ideally placed to deliver on this vision working alongside the implementation teams and clinical staff at UHSx to ensure there is long term benefit to the people of this region.

Alcidion shares traded as high as 12 cents on the news, up 20.2% before settling back to be 11.1% higher at 11 cents.

The contract win follows another in November, involving a contract expansion with Leidos Australia to further expand its use of Miya Precision.

That contract is worth $12.3 million out to 2028, adding $2.5 million to the company's annual recurring revenue. The company is expecting to recognise $5.5 to $6.5 million of the new revenue in FY26.

Alcidion was valued at $132.9 million at the close of trade on Wednesday.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group. The Motley Fool Australia has recommended Alcidion Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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