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Pro Medicus Limited (ASX: PME)
Pro Medicus Limited (ASX: PME) announced a strong financial performance for the half-year ending December 2024, reporting a net profit of $51.7 million, an increase of 42.7% compared to the previous period. Revenue grew by 31.1% to $97.2 million, largely driven by North American sales, which increased by 34.6% to $86.4 million. The company maintained its strong financial position, remaining debt-free with cash and financial assets totaling $182.3 million, a 17.7% increase. A fully franked interim dividend of 25 cents per share was declared.
Key contract wins contributed significantly to growth, including agreements with Trinity Health, Lurie Children’s Hospital, and Duly Health and Care, collectively worth a minimum of $365 million over 7 to 10 years. Pro Medicus also renewed major contracts with Mercy Health in the USA for $98 million over eight years and an Australian radiology practice for $32 million over five years. Additionally, contract expansions with Duke Health ($15 million, five years) and NYU Langone ($24 million, five years) further reinforced the company's growth.
Pro Medicus Limited has also signed a seven-year contract worth AUD 40 million with LucidHealth, a leading radiology services provider in the United States. Through its U.S. subsidiary, Visage Imaging, Inc., Pro Medicus will implement its cloud-based Visage 7 Enterprise Imaging Platform across LucidHealth's network of 140 care sites, serving over 300 radiologists. The phased rollout is set to begin in late Q3 or Q4 of 2025, replacing LucidHealth’s legacy PACS system with Visage 7 Viewer.
This agreement is based on a transactional licensing model, providing potential revenue upside for Pro Medicus. The contract further strengthens the company's expansion into the North American private healthcare and teleradiology markets. CEO Dr. Sam Hupert emphasized that LucidHealth's needs align well with Visage 7’s capabilities, particularly its subspecialized onsite and remote reading functionalities, making it an ideal solution for academic medical centers, integrated delivery networks (IDNs), and outpatient clinics.
Visage 7 CloudPACS is becoming a standard in North American healthcare IT, with an increasing number of clients choosing its cloud-based imaging platform. This contract reinforces Pro Medicus’ position as a key player in the healthcare imaging industry, supporting its continued growth and expansion in international markets.
CEO Dr. Sam Hupert highlighted the company’s record-breaking results, driven by strong contract wins, successful implementations, and improved margins, which increased to 72% from 66% in the previous period. He emphasized the company’s robust pipeline, particularly in the US market, with significant opportunities arising from industry events like the RSNA conference. The modular approach of Pro Medicus continues to attract clients across different healthcare segments, with increasing adoption of its full Visage 7 suite, which includes Viewer, Workflow, and Archive solutions.
Pro Medicus remains focused on scalability and continued expansion, particularly in North America. The company’s strong financial position and growing client base reinforce its long-term growth trajectory in the healthcare imaging sector.
(Source: Company's Report)
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