Health imaging company Pro Medicus (ASX: PME) has today announced a seven-year contract with Salt Lake City-based Intermountain Healthcare worth $40 million.
The contract will see the Melbourne-based company's high-speed imaging software Visage 7 Viewer and Visage 7 Open implemented across all of Intermountain's radiology and subspecialty imaging departments.
Mainly built for radiologists, Visage 7 is a high-speed viewer that allows clinicians to interpret scans of the body quickly, efficiently, and with higher degrees of accuracy.
The tech is particularly important in emergency room situations, where, for example, being able to interpret a brain scan of a stroke patient and present a diagnosis quickly could mean life or death for the patient.
The rollout at Intermountain will begin in Q3 FY21, with data migration commencing immediately by Visage's engineering team. The first sites will go live shortly thereafter.
Pro Medicus CEO Dr Sam Hupert says the deal is a boon for the company because Intermountain is the largest health system in the US state of Utah and also provides medical services in the states of Idaho and Nevada.
"This is a very important deal for us, not only because of its size and scope, it will provide us with a material footprint in Intermoutnain West, previously an untapped region for us," says Hupert.
"It also validates our decision to engineer Visage 7 from the ground up to be natively cloud capable, with Intermountain deploying both the Visage 7 Viewer and Visage 7 Open Archive as part of our Visage in the Cloud offering, making this one of the largest cloud-based PACS implementations in the world."
The deal is Pro Medicus' fifth and largest major contract win in the last six months; all five with international clients in the US and Germany, with a total value of $101.5 million.
"We believe this validates our belief that we have unique, market leading technology which, coupled with our expanded product portfolio and native cloud capability, has significantly increased our total addressable market in our key jurisdictions of North America, Europe and Australia," says Hupert.
"In terms of the pipeline, there have been a number of new opportunities, particularly over the past six to eight months that supplement those already in the pipeline that are progressing through the cycle.
"So, whilst we have been very successful in converting end-stage opportunities such as Intermountain and the other deals we have announced over the past six months, our pipeline remains strong with a range of opportunities across various stages of the cycle and across multiple segments of the market."
Shares in Pro Medicus are up 11.43 per cent to $35.40 per share at 11.02am AEDT.
Business News Australia