Pro Medicus (ASX: PME): Imaging a Smarter Healthcare Future
Pro Medicus Limited has evolved from a niche Australian imaging software provider to a global healthcare technology leader. With its cutting-edge Visage 7 platform, strong financials, and a growing pipeline in the U.S. and beyond, PME is showing why it deserves serious attention from long-term investors.
A Half-Year That Set Records
For the six months ending December 31, 2024, PME delivered outstanding financial results. Revenue climbed 31.1% year-on-year to $97.2 million, while net profit surged 42.7% to $51.7 million. Underlying EBIT margins improved from 66% to a robust 72%, driven by increased transaction-based revenue and efficient cost control.
North America remains the primary growth engine, contributing $86.4 million up 34.6%. Importantly, PME remains debt-free, holding $182.3 million in cash and financial assets, even after paying a fully franked interim dividend of 25 cents per share. This financial strength gives it unmatched flexibility for R&D, strategic investments, and potential M&A.
Winning Big in the U.S. Healthcare Market
PME’s Visage 7 platform is rapidly becoming the preferred imaging solution across the U.S., with several key contracts secured during the period. Notable deals include:
- A $330 million multi-year contract with Trinity Health, PME’s largest ever
- $40 million, 7-year deal with LucidHealth, expanding PME’s footprint in the private teleradiology segment
- A $20 million contract with University of Iowa Health Care for a full-stack cloud implementation
- Renewals and add-ons at Duke Health ($15 million) and NYU Langone ($24 million)
These wins validate PME’s differentiated offering: fast cloud-based deployment, server-side streaming, seamless integration, and a full suite covering Viewer, Workflow, and Archive.
R&D, AI and Next-Gen Imaging
True to its innovation DNA, PME is doubling down on R&D. It recently signed a multi-year research collaboration with UCSF, leveraging the Visage AI Accelerator platform to develop and commercialise clinical-grade AI tools. The company also made significant headway in cardiology with its new cardiac echo package, now under implementation.
Such moves aren't just about new features they’re strategic bets on the future of medical imaging, where speed, AI integration, and scalability will define winners.
Market Opportunity Remains Massive
Despite its impressive run, PME’s market share in the U.S. imaging space moved from 7% to just 8% highlighting how vast the opportunity remains. With over 60% of global healthcare spending occurring in the U.S. and small providers increasingly consolidating, PME’s ability to offer cost-effective, cloud-first imaging makes it highly scalable.
Its modular full-stack architecture also allows clients to scale up, as seen with Duke and NYU, where existing customers added new products to their contracts.
Final Take
Pro Medicus combines the best of both worlds: healthcare resilience and tech-style growth. With recurring revenues, high margins, rapid adoption of cloud-based imaging, and a strong pipeline across academic, private, and IDN markets, PME is not just keeping pace it’s setting the standard.
For investors looking to ride the digital health wave with a business built on real contracts, real profits, and real innovation, PME is one to watch closely.
Sigma Healthcare (ASX: SIG): A Sustainable Giant in Australia’s Healthcare Transformation
Sigma Healthcare Limited (ASX: SIG) is one of Australia’s leading pharmaceutical distributors and retail pharmacy franchisors. Headquartered in Clayton, Victoria, Sigma operates a network that spans across all states and territories, supplying more than 1,200 pharmacies and supporting well-known brands like Amcal and Discount Drug Stores. With a legacy of over a century, Sigma has recently redefined its future through the successful merger with Chemist Warehouse Group (CWG), positioning itself as a full-service, vertically integrated healthcare business.
This transformation isn't just structural it's strategic. Sigma’s 2024/25 Sustainability Report reflects its commitment to responsible growth, underpinned by robust ESG governance, technological innovation, and a sharpened focus on healthcare accessibility and affordability.
Merger with Chemist Warehouse: Reshaping Market Dynamics
The merger with CWG, completed in February 2025, was one of the most significant milestones in Sigma’s history. It followed the successful execution of a five-year wholesale supply contract that began in July 2024. Despite a more than 50% increase in inbound and outbound volumes, Sigma maintained best-in-class delivery standards, with 99.6% of orders fulfilled in full and 99.4% dispatched on time.
The merger created a pharmaceutical and retail platform with unmatched scale, market presence, and operational reach. Now servicing over 23% of Australia's consumer pharmacy spend, Sigma is redefining its role not just as a logistics provider, but as a complete pharmacy ecosystem enabler.
Environmental Leadership with Measurable Outcomes
Sigma’s sustainability efforts advanced significantly in FY2025. The company achieved a 79.2% waste diversion rate, up from 71.2% the previous year, and was awarded the “Beyond Best Practice” rating by the Australian Packaging Covenant Organisation. It also secured approval for a large-scale solar installation at its Kemps Creek distribution centre and rolled out 11 electric vehicles to its transport fleet. These actions align with Sigma’s broader objective of reducing dependence on grid electricity and lowering its operational carbon footprint.
The rise in Scope 1 and 2 emissions to 7,673 tonnes of CO2 equivalent was a result of the business scale-up. However, Sigma has proactively formed a Climate Reporting Working Group to prepare for Australia’s mandatory climate disclosures (AASB S2), reflecting its readiness for a low-carbon economy.
Digital Evolution: From AI Trials to Cyber Resilience
Technology remains a central pillar in Sigma’s transformation. During the year, the company began piloting AI tools to enhance inventory management and supply chain efficiency. It also integrated Microsoft Copilot into its technology division to streamline internal workflows. In terms of cybersecurity, Sigma rolled out Rapid7 threat detection across all digital devices and adopted a Cybersecurity Incident Response Plan and Information Security Policy. Importantly, no reportable breaches occurred during the reporting period demonstrating the effectiveness of its upgraded digital safeguards.
Advancing Healthcare Access and Operational Excellence
As demand for accessible, reliable healthcare grows, Sigma continues to deliver where it matters most. The company responded to regulatory reforms like the 60-day PBS dispensing rule by increasing inventory across its eight distribution centres. It also supported franchisees with new programs to facilitate the sale of medicinal cannabis and vaping products and ran a concussion-testing pilot across its Amcal network.
New digital communication channels were introduced to better engage franchisees, and Sigma continued to support over 398 aged care centres with timely medication delivery. These efforts reflect the company’s ongoing commitment to community health outcomes.
Final Word
Sigma Healthcare is not just scaling its operations it is reshaping the healthcare supply chain with purpose and precision. With a solid ESG foundation, a forward-looking tech agenda, and seamless post-merger execution, Sigma is well positioned to lead the next era of sustainable, accessible, and technology-driven healthcare in Australia.
(Source: Company Announcements)
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