Pro Medicus signs $10million contract with German University

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Pro Medicus signs $10million contract with German University

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  • Pro Medicus Signs $10 million contract with German University Hospital, Ludwig-Maximillian’s-University (LMU Klinkum)
  • In December of 2020, the company’s Visage 7 Technology will be implemented across the Universities facilities
  • The contract follows a $25 million contract in New York, prefacing the potential that international clients pose to Pro Medicus

Pro Medicus (ASX: PME) has signed a $10 million 7-year contract with one of the largest university hospitals in Germany. Pro Medicus will deploy its Visage Technology throughout the University'simaging departments. Visage 7 provides fast, multidimensional images that are streamed through an intelligent thin-client viewer.

It is essentially an interface used to manage and view web-based documents and images. The Technology will provide a highly scalable and reliable platform to manage and perform sophisticated clinical procedures and improve the day to do care of patients.

"We are very excited about this project. LMU is a thought leader in making a digital strategy a core principle of their operations," commented the Managing director of Visage Dr Malte Westerhoff. Pro Medicus is a leading provider of radiology information systems Picture Archiving and Communication Systems (PACS) and advanced visualization solutions.

The company’s 30-year history has displayed a relentless commitment to supporting the industry with products and services that improve efficiency and productivity. The company themselves believe “Everything we do is about providing Seamless, integrated solutions in imaging IT.”

Munich-Based University Ludwig-Maximillian’s-University (LMU Klinkum) is, in fact, one of the largest university hospitals in Europe. Its medicine department is the largest medical training institutions in Southern Germany. The University's decision to replace 100 per cent of the hospital's archiving and communication systems, is part of its aim to implement the world’s most high-tech efficient technology throughout all its departments.

The decision from the German University goes beyond the norm for European Hospitals who traditionally used a standardized IT platform provided by large Multinational Imaging equipment vendors. The $10 million contract is the first stage in the company’s expansion into the European market, which they are confident they will puncture. The implementation of the technology is scheduled to begin in December of 2020.

LMU’s Chief Information Officer Dr Kurt Kruber stated, "We look forward to taking our partnership with Visage to the next level as we implement their technology across our radiology department.”

Previously the company signed a $25 million with NYU Langone Health to deploy Visage technology in the United States. The deal again represented Pro Medicus’ footprint into a tier-one academic hospital. As international expansion and distribution of visage is being realized the company’s share price is following this positive news. UBS, in particular, has a buy rating on Pro Medicus due to the potential in large scale international expansion.

As of the 16th of October 2020, Pro Medicus is trading at $30.44 (11:15 am), more than doubling its share price since March of this year. At the announcement, the share price jumped over 7 per cent, now only another 25 per cent of all-time highs.

Caroline Wong

Caroline Wong is a Research Analyst at KOSEC – Kodari Securities. She writes on markets and focuses on ASX Top 300 companies. Email Caroline at c.wong@kosec.com.au.

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