PRO MEDICUS LTD (PME.AU) saw its stock price soar 8.21% during intraday trading on Monday, following the announcement of two significant contract deals that are expected to boost the company's future revenue.
The medical imaging technology company announced that its US subsidiary, Visage Imaging, has signed a new seven-year contract worth approximately AU$16 million with US healthcare network TidalHealth. The contract, which will be implemented in the cloud, includes Visage Imaging's full software stack and the Visage 7 cardiology imaging product, with rollout planning to begin immediately.
Additionally, Pro Medicus revealed it has renewed its partnership with Allegheny Health Network through a five-year contract valued at around AU$28 million. The renewed agreement expands AHN's use of Visage technology by incorporating Visage 7 workflow and features increased minimums and higher fees per deal, providing potential upside for the company based on a transaction-based model.