Pro Medicus Ltd (ASX: PME) shares are in the spotlight again on Thursday after the health imaging technology company announced yet another contract win.
At the time of writing, the ASX 200 tech stock is up 3% to $164.65.
This compares favourably to the S&P/ASX 200 Index (ASX: XJO), which is down 0.85% in early trade.
It also means the company's shares are now up 23% since this time last week.
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Pro Medicus shares higher on new contract win
As a reminder, earlier this week Pro Medicus revealed that its wholly-owned U.S. subsidiary, Visage Imaging, signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN).
AHN is one of the largest health networks in the Pittsburgh metro area, providing care to 29 Pennsylvania counties, as well as portions of New York, Ohio, and West Virginia. It is a unified network comprised of 14 hospitals, a total of 2,500 beds, and more than 200 primary-care and specialty-care practices in more than 300 clinical locations and offices.
The contract renewal came with increased per-transaction fees.
This morning, Pro Medicus shares are rising after it advised that Visage Imaging has signed a five-year, A$16 million contract renewal, including the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, with The Ohio State University Wexner Medical Center (OSUWMC).
The company notes that OSUWMC is a large multidisciplinary academic medical center located in Columbus, Ohio. It employs approximately 22,000 staff, 2,000 physicians, supporting over 1,400 inpatient beds, across six hospitals. OSUWMC is also the teaching hospital for The Ohio State University College of Medicine.
Commenting on the renewal, Pro Medicus' CEO, Dr Sam Hupert, said:
OSUWMC provides world class, acclaimed patient care. Renewing this contract, to now include the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, confirms our belief that we have extensive native capabilities that Visage customers appreciate as they seek to retire legacy solutions and continue to scale their Visage 7 Enterprise Imaging Platform.
Dr Hupert revealed that this latest renewal brings the total renewals for the financial year to A$141 million. He believes this is a testament to the strong returns on investment the software provides for healthcare institutions. He said:
This contract brings our total renewals for the financial year to A$141M, maintaining our track record of client retention. This underpins our belief that our solution provides unparalleled return on investment from both a financial and a clinical perspective.
