Pro Medicus Ltd (ASX: PME) shares are having another strong session on Thursday as investors continue to buy back into the ASX healthcare stock.
At the time of writing, the Pro Medicus share price is up 2.05% to $182.66.
It has been a big month for the company's shares, which have now climbed around 40% over that period.
That bounce has helped repair some of the damage from earlier in the year. Even after the recent rally, Pro Medicus shares are still down roughly 17% since the start of 2026.
The latest announcement appears to have given the rally another push.
Image source: Getty Images
Pro Medicus signs AI agreement
According to the release, Pro Medicus has signed binding heads of agreement (HoA) with Echo IQ Ltd (ASX: EIQ).
The deal would see Pro Medicus take a stake in Echo IQ and work with the company to sell its products in the US.
Echo IQ is an AI and medical technology company working in cardiology. Its software is designed to help doctors make decisions using heart imaging data.
Under the agreement, Pro Medicus will make an initial $10 million investment in Echo IQ through secured convertible notes.
There is also room for another $10 million investment if Echo IQ receives US Food and Drug Administration clearance for its EchoSolv HF product.
EchoSolv HF is an AI-powered tool that helps identify heart failure risk using cardiac imaging data.
Furthermore, the agreement includes a proposed reseller arrangement. This allows Pro Medicus to market and distribute Echo IQ's products to its healthcare customers, particularly in the United States.
Echo IQ deal opens another door
The update seems to have gone down well because it gives Pro Medicus another way to build out its cardiology offering.
The company is already best known for its Visage Imaging platform, which is used by large healthcare groups to view and manage medical images.
This agreement could add Echo IQ's AI technology to the mix, while giving Echo IQ access to a much larger customer network.
Pro Medicus CEO Dr Sam Hupert said the company is "looking to offer Visage 7 Cardiology customers the option of using Echo IQ's technology."
He said the agreement fits with the company's strategy of offering a carefully selected suite of algorithms. That includes its own technology, tools created with clinical partners, and third-party algorithms such as Echo IQ.
What comes next?
It's worth remembering that despite the positive news, the agreement still needs final legal documentation.
The companies said the deal is expected to be finalised in the coming weeks.
Echo IQ also said its FDA submission for EchoSolv HF remains on track for an outcome in the near term.
