Pro Medicus Limited (ASX: PME) Secures $15M Deal with Duke University
Contract Overview
Leading health imaging company Pro Medicus Limited (ASX: PME) announced a significant $15 million, five-year contract with Duke University Health System. This contract will integrate the Visage 7 Open Archive into Duke’s existing systems, transitioning from an on-premises to a cloud-based model. The extension of the current Visage 7 Viewer license until 2029 is included as part of this deal.
Operational Impact
The contract is centred around a transaction-based licensing model, which could provide substantial financial upside for Pro Medicus. This marks a strategic expansion into North American academic institutions, further establishing the company as a leader in health informatics.
Future Rollout and Executive Insights
Planning for the implementation will start immediately, focusing on migrating Duke’s current archive to the new Visage 7 Open Archive. Dr Sam Hupert, CEO of Pro Medicus, stated, “This deal confirms our belief that there is a material opportunity for us to sell Visage 7 Open Archive to our existing base of ‘viewer only’ clients.” He highlighted that this transition adds significant performance and scalability while facilitating the shift to cloud-based solutions, a trend expected to persist.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia 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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