The Pro Medicus Ltd (ASX: PME) share price could be in focus today after the company announced a 7-year, A$23 million contract with St. Luke's Health System in the US, with rollout scheduled to start immediately and go-live aimed for the first quarter of 2027.
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What did Pro Medicus report?
- Signed 7-year, A$23 million contract with St. Luke's Health System
- Contract covers Visage 7 Viewer and Visage 7 Workflow solutions
- Visage 7 platform to be implemented in the cloud
- Based on a transaction-based licensing model
- Go-live targeted for Q1 in the 2027 calendar year
What else do investors need to know?
St. Luke's Health System is Idaho's largest private employer and not-for-profit healthcare provider, spanning 10 medical centres. The deal will see Visage 7 become the enterprise imaging solution across St. Luke's network, including the flagship Boise Medical Center and St. Luke's Children's Hospital.
Pro Medicus highlighted that its transactional, cloud-based model provides potential upside beyond the fixed contract value, as usage grows over time. The company's cloud-first approach is gaining traction in the North American healthcare market, strengthening its market presence and pipeline.
What did Pro Medicus management say?
Commenting on the news, Pro Medicus' CEO, Dr Sam Hupert, said:
St. Luke's provides outstanding, community-based care to patients across southern Idaho, eastern Oregon and northern Nevada. 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.
What's next for Pro Medicus?
Implementation planning begins immediately, following Visage's established cloud rollout process, aiming for an early 2027 go-live. Management also pointed to a strong pipeline, spanning academic medical centres and large healthcare networks, which could deliver further growth opportunities.
With its cloud-based platform becoming increasingly popular and the largest addressable market in the sector, Pro Medicus appears to be well positioned for future expansion both in the US and globally.
Pro Medicus share price snapshot
The Pro Medicus share price has been caught up in a tech sell off over the past 12 months and has lost 40% of its value. This compares to a 4% gain from the S&P/ASX 200 index (ASX: XJO) over the same period.
