Pro Medicus Limited (ASX: PME) Secures $30M Contract with Duly Health and Care

Key Highlights:

• Pro Medicus (PME) secures a 7-year, AUD $30 million contract with Duly Health and Care (DHC).
• Introduction of the Visage 7 platform, replacing DHC’s legacy PACS and archive systems.
• Full-stack solution includes Visage 7 Viewer, Open Archive, and Workflow modules.
• Cloud-based implementation with a transactional licensing model offering potential growth.
• Go-live targeted for Q2 2025.

Pro Medicus Limited (ASX: PME), a global leader in healthcare informatics and imaging solutions, continues to redefine the industry with its latest announcement. The company has secured a groundbreaking $30 million contract with Duly Health and Care (DHC), a prominent independent multi-specialty physician group in the Midwest USA. This strategic partnership highlights Pro Medicus’ commitment to innovation, scalability, and cloud-driven solutions.

Redefining Radiology for the Midwest’s Largest Medical Group

DHC, operating under brands such as DuPage Medical Group, Quincy Medical Group, and The South Bend Clinic, is a pivotal player in the Midwest healthcare landscape. It supports over 1,000 physicians, 150 outpatient clinics, and more than 40 radiologists, making it a prime candidate for advanced diagnostic imaging transformation.

Under the terms of the 7-year agreement, Pro Medicus’ Visage 7 Enterprise Imaging Platform will replace DHC’s legacy systems with a unified, cutting-edge diagnostic imaging platform. The Visage 7 solution integrates its Viewer, Open Archive, and Workflow capabilities, ensuring an end-to-end imaging solution that’s faster, more efficient, and seamlessly scalable.

Why This Deal Matters

This partnership isn’t just another contract—it’s a clear signal of Pro Medicus’ expanding footprint in the private radiology and outpatient sectors. According to Dr. Sam Hupert, CEO of Pro Medicus, this segment represents a burgeoning opportunity in the North American healthcare IT market.

“Duly Health and Care is an important deal for us as they operate in the private radiology and outpatient space, areas where we are seeing increased opportunities,” said Dr. Hupert. “Their decision to implement a fully cloud-engineered solution aligns with our CloudPACS strategy, now a standard in the healthcare IT market.”

The Cloud Advantage: Speed, Scalability, and Security

Visage 7’s cloud-based approach offers several advantages, including faster deployment, enhanced data security, and seamless scalability. This is particularly important in a healthcare environment increasingly focused on cost efficiency and operational excellence. By transitioning from legacy PACS and vendor-neutral archives to Visage 7 Open Archive, DHC positions itself as a leader in adopting cutting-edge diagnostic technologies.

A Transactional Model with Growth Potential

The agreement’s transactional licensing model offers additional upside for Pro Medicus. Unlike traditional fixed-fee contracts, this model scales with usage, providing a mutually beneficial arrangement that grows alongside DHC’s diagnostic imaging needs.

Market Trends and Pro Medicus’ Strategic Vision

Pro Medicus has consistently demonstrated its ability to adapt to market demands. Its “full-stack” solutions, encompassing the Visage Viewer, Workflow, and Archive modules, have become the preferred choice for many healthcare providers. This trend underscores the growing demand for comprehensive, cloud-driven solutions in the imaging sector.

The company’s strong pipeline includes opportunities across diverse market segments, from academic medical centers and integrated delivery networks (IDNs) to the private and teleradiology markets. Each contract further solidifies Pro Medicus’ reputation as a pioneer in medical imaging solutions.

A Stellar Year for PME Investors

2024 has been a remarkable year for Pro Medicus and its shareholders. The company’s stock has surged by 167.07% over the past year, reflecting strong investor confidence and consistent delivery of strategic milestones.

• Stock Price (as of December 23, 2024): AUD 255.44
• Volume: 95,697
• Dividend Yield: 0.16%
• PE Ratio: 325.82
• 52-Week Range: AUD 85.60 – 271.37

Looking Ahead

As Pro Medicus prepares to roll out Visage 7 for DHC in early 2025, the company is set to maintain its trajectory of growth and innovation. This deal not only reinforces Pro Medicus’ leadership in healthcare imaging but also paves the way for further opportunities in the U.S. market and beyond.

For investors, the DHC contract signals Pro Medicus’ potential for sustained revenue growth and market expansion. For the healthcare industry, it represents a shift towards more integrated, cloud-enabled imaging solutions that set a new benchmark for speed, efficiency, and patient care.