This ASX 200 healthcare share just hit a new 52-week high. Here’s why

S&P/ASX 200 Index (ASX: XJO) healthcare share Pro Medicus Ltd (ASX: PME) is marching higher today, up 1.51% at the time of writing.

That sees the healthcare stock trading for $63.06 per share after hitting $63.35 late this morning, a fresh 52-week high. It’s also now less than 4% below the all-time Pro Medicus share price high, reached in August 2021.

What’s sending the ASX 200 healthcare share higher?

Investors are rewarding Pro Medicus after the health imaging company announced on Friday that Visage Imaging, its 100% owned United States subsidiary, signed a $25 million, seven-year contract with the University of Washington’s UW Medicine health system.

UW Medicine employs 29,000 healthcare professionals, researchers, and educators.

The ASX 200 healthcare share reported UW Medicine will implement its cloud-engineered Visage 7 Enterprise Imaging Platform throughout its network “providing a unified diagnostic imaging platform”.

Planning for the cloud-based rollout will start immediately. Pro Medicus expects the first go-lives to commence in the second half of 2023.

Commenting on the contract, Pro Medicus CEO Sam Hupert said:

UW Medicine joins our growing list of Tier 1 academic clients and will provide us with a strong presence in the Northwest region of the United States. With its highly regarded University of Washington School of Medicine, it has the added benefit of exposing Visage to an ever-increasing number of the doctors of tomorrow.

Hupert noted that the contract encompasses all Pro Medicus Visage products.

“Our pipeline remains strong and spans all market segments,” he said. “And as has been the case with many of our recent sales, this deal is for our ‘full-stack’ comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.”

Pro Medicus share price snapshot

As you can see in the chart below, the Pro Medicus share price strongly outperformed over the past 12 months, gaining 40% compared to a 4% gain posted by the ASX 200.

Investors who bought into the ASX 200 healthcare share five years ago will be sitting on some superbly healthy gains of 683%.

The post This ASX 200 healthcare share just hit a new 52-week high. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus. The Motley Fool Australia has positions in and 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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