The Pro Medicus Ltd (ASX: PME) share price is in focus after the company secured a major 7-year, A$43 million contract with Virtua Health in the United States. This deal will see PME's cloud-based Visage 7 enterprise imaging platform rolled out across Virtua's health system.
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What did Pro Medicus report?
- Signed a 7-year contract worth A$43 million with Virtua Health, based in New Jersey, USA
- The agreement covers the unified Visage 7 Viewer, Workflow, Open Archive, and Cardiology products
- Contract to be delivered via PME's cloud-based platform, supporting hospital-wide image access and EHR integration
- Revenue tied to a transaction-based model, allowing for potential upside
- Implementation to begin immediately, with full rollout targeted for late Q2/early Q3 2027
What else do investors need to know?
Virtua Health is a major healthcare provider in South Jersey with five hospitals and 15,000 employees. This win adds to Pro Medicus' growing footprint among large US health systems choosing fully cloud-based imaging.
The deal further validates PME's CloudPACS strategy, which aims to set industry standards in North American healthcare IT. The contract includes Visage's new cardiology offering, indicating rising demand for 'full stack' unified imaging solutions in major health networks.
What did Pro Medicus management say?
Pro Medicus CEO Dr Sam Hupert said:
Virtua provides outstanding, innovative care to all of South Jersey. 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?
Pro Medicus management reports a strong pipeline across all market segments, with increasing global interest in the company's end-to-end imaging solutions. The Virtua deal is expected to further entrench PME in the US market and demonstrates traction for their 'full stack' strategy including additional specialities like cardiology.
Planning for the Virtua rollout commences immediately, with the system set to go live from late 2027. PME continues to focus on winning large, long-term contracts with major healthcare providers worldwide.
Pro Medicus share price snapshot
Over the 12 months, Pro Medicus shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.
