The Pro Medicus Ltd (ASX: PME) share price is on watch today after the company announced a new 7-year, A$25 million contract with Valley Health in the United States, covering its full suite of cloud-based medical imaging solutions.
Image source: Getty Images
What did Pro Medicus report?
- Signed a 7-year, A$25 million contract with Valley Health in the U.S.
- Valley Health will implement Visage 7 Viewer, Workflow, Open Archive and Cardiology Imaging
- Contract to be delivered using a cloud-based, transaction-based pricing model
- Migrating Valley Health's legacy PACS archive to Visage 7 Open Archive
- Go-live implementation target set for Q1 of calendar year 2027
What else do investors need to know?
The Valley Health contract continues Pro Medicus' momentum in the North American market, expanding its reach in the Mid-Atlantic region. This deal showcases the company's growing reputation for delivering unified, cloud-based imaging solutions.
Importantly, Valley Health chose to adopt the full range of Visage 7 products, including the cardiology module—reflecting ongoing industry trends toward platform consolidation and cloud adoption. With its flexible, transaction-based pricing, Pro Medicus may also see further upside as usage grows.
What did Pro Medicus management say?
Pro Medicus CEO, Dr Sam Hupert, commented:
Valley Health provides award-winning care to their patients and is committed to improving the health of their region. They join our established customers in Virginia and the Mid-Atlantic, reflecting an ever-growing list of Visage 7 clients opting 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?
Planning for the Valley Health rollout will commence immediately, with go-live aimed for the first quarter of 2027. The company expects continued growth from its 'Full Stack +1' offering, catering to health enterprises looking to modernise and unify their imaging systems.
With a strong pipeline across all segments and growing demand in North America, Pro Medicus appears well placed to build on its position as a leading provider of cloud-based medical imaging software.
Pro Medicus share price snapshot
Over the past 12 months, the Pro Medicus share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a disappointing decline of around 33%.
