Pro Medicus Ltd (ASX: PME) shares are starting the week in a positive fashion.
In morning trade, the health imaging technology company’s shares are up almost 3% to $258.50.
Why are Pro Medicus shares rising?
Investors have been bidding the company’s shares higher today after it announced three more contract wins ahead of its annual general meeting.
This update is hot on the heels of an announcement last week which revealed that the company has signed a five-year, $44 million contract with Advanced Radiology Management in the United States.
According to today’s release, its wholly owned U.S. subsidiary, Visage Imaging Inc, has signed three new contracts with a combined minimum contract value of $29 million. These contracts will be fully cloud-deployed and are planned to be completed within the next six months.
The first contract is a $6.5 million five-year contract with Children’s of Alabama, which is a leading paediatric hospital in Birmingham, Alabama.
The second is a $9.5 million, seven-year contract with Roswell Park Comprehensive Cancer Center. It is a cancer research and treatment facility located in Buffalo, New York.
The final one is with Vancouver Clinic, which is a physician-owned and governed group in Vancouver, Southwest Washington. That contract is worth a minimum of $13M over a seven-year period.
Management notes that these new contracts bring the company’s minimum total contract value (TCV) for sales for the first half of FY 2026 to $273 million.
Commenting on today’s news, Pro Medicus’ founder and CEO, Dr Sam Hupert, said:
They comprise a children’s hospital, a cancer center, and a physician-owned and run regional healthcare provider. This diversity reinforces our belief that our product is ideally suited to virtually all segments of the market, from smaller groups all the way through to some of the largest IDN’s and academic medical centers in the US.
The good news is that Pro Medicus’ sales pipeline remains strong despite its recent wins. And with a major conference on the horizon, it could be a very busy period for the company. Dr Hupert commented:
Despite very robust sales in the half, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments. We also have the all-important RSNA conference in Chicago later this month which is shaping up to be our biggest yet.
The post Pro Medicus shares charge higher on big news appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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