The Pro Medicus Ltd (ASX: PME) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed Friday trading for $253.25. In morning trade on Monday, shares are changing hands for $260.98 apiece, up 3.1%.
For some context, the ASX 200 is up 0.6% at this same time.
This comes after Pro Medicus announced a sizeable new United States-based contract.
Here's what's happening.
The Pro Medicus share price is lifting off after management reported that Visage Imaging, the company's wholly owned US subsidiary, has signed a $40 million seven-year contract with LucidHealth.
LucidHealth provides radiology services in the US, employing more than 300 radiologists across its network of 140 care sites.
Under the agreement, LucidHealth will implement Pro Medicus' cloud-based Visage 7 Enterprise Imaging Platform throughout its network. This will provide LucidHealth with a unified diagnostic imaging platform.
Pro Medicus noted that this is a transaction-based model with potential upside.
Management said that planning for the rollout will begin immediately, based on Visage's "proven cloud-based implementation process".
A phased go-live is targeted to commence late in the third quarter or in the fourth quarter of the 2025 calendar year.
Commenting on the new contract that's supporting the Pro Medicus share price today, CEO Sam Hupert said, "LucidHealth joins our rapidly growing list of private practice clients."
Hupert continued:
Their needs, which include subspecialised onsite and remote reading/ teleradiology capabilities, are uniquely catered for by our proprietary server-side streaming technology reinforcing our view that Visage 7 is ideally positioned to address this market and the other key market segments we service, which include academic medical centres, IDNs and outpatient clinics.
Commenting on the growing importance of the cloud to the business, Hupert added:
LucidHealth joins the increasing number of Visage 7 North American clients to opt for Visage CloudPACS, our cloud-based solution, which is fast becoming the standard in the North American healthcare IT market.
With today's intraday boost factored in, the Pro Medicus share price is up 162% since this time last year, having hit an all-time closing high of $297.14 on 19 February.
Pro Medicus reported its half-year results on 13 February.
The company achieved a 32% year on year increase in revenue to $100.8 million.
And net profits for the half year were up 42.7% to a record $51.7 million.
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