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PME - Pro Medicus

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PME signs $24M upgrade to “full stack” with NYU Langone Health

27 November 2024

HIGHLIGHTS
 PME signs AUD $24M, 5-year deal with NYU Langone Health
 Contract is to extend to “full stack” – with the addition of Visage 7 Open Archive to the Visage 7 Viewer and Visage 7 Workflow
 Visage 7 archive to be implemented in the cloud
 Continues PME’s expansion into North American academic institutions
 Transaction-based model with potential upside
Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly owned U.S. subsidiary, Visage Imaging, Inc., has signed an additional $24M, 5-year contract with NYU Langone Health, one of the most respected and innovative healthcare institutions in North America.
The contract, based on a transaction-based licensing model, will see the addition of Visage 7 Open Archive deployed in the cloud and an eventual transition of NYU Langone’s entire current on-premise system to the cloud.
The Visage 7 Viewer contract (signed in September 2020)has been extended for a further year to 2029, as part of the deal.Planning for the rollout is to commence immediately and will involve the migration of NYU Langone’s current archive to the Visage 7 Open Archive.

“This is a significant deal for us as it confirms our belief that there is opportunity for us to sell our archive and work-list modules back to our “viewer only” clients.” said Dr Sam Hupert,
Pro Medicus CEO. “And, in time, we believe those customers with on premise solutions will join NYU and transition to cloud, a trend we see continuing.”

Authorised by the Board of Pro Medicus Limited.For further information:

Dr Sam Hupert Chief Executive Officer Pro Medicus Limited Phone: +61 3 9429 8800

i hold PME ( 'free-carried ' )

hmmm i was hoping the contract announcement would be announced next month ( to help my comp. chances )
 
whooshka... as high as $258.87



PME signs AUD $330M, 10-year contract with Trinity Health​
28 November 2024
HIGHLIGHTS
- PME signs AUD $330M, 10-year deal with Trinity Health
- Visage to replace multiple legacy PACS throughout the Trinity Health enterprise
- Contract is for “full stack” - Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow
- Visage 7 platform to be implemented in the cloud
- Continues PME’s rapid expansion into North American integrated delivery networks (IDN)
- Transaction-based model with potential upside
 


https://newsrush.ai/share/?document=46503&company=48

PRO MEDICUS LIMITED​


PME signs AUD $330M, 10-year contract with Trinity Health Share​

Announcement Type: Contract Announcement​

28 November 2024 1:32 PM. Open PDF | 3 Pages

Pro Medicus Limited [ASX: PME] secured a substantial AUD $330 million, 10-year contract with Trinity Health, a major US healthcare system, to implement its Visage 7 imaging platform.

Summary​

  • Pro Medicus (PME) signed a massive AUD $330 million, 10-year contract with Trinity Health, one of the largest non-profit healthcare systems in the US.
  • The contract involves implementing PME's Visage 7 Enterprise Imaging Platform, including the viewer, archive, and workflow modules, across Trinity Health's vast network.
  • Trinity Health operates 93 hospitals, 107 continuing care locations, and numerous other facilities across 26 states.
  • Visage 7 will replace Trinity Health's existing legacy PACS system from nine different vendors, providing a unified platform.
  • The platform will be implemented in the cloud and is expected to benefit over 650 radiologists and thousands of clinicians.
  • The deal is based on a transactional licensing model, offering potential for additional revenue.
  • Rollout is planned to start immediately, with phased implementations beginning in early Q3 2025.

Sentiment​

Score: 9
Explanation: The announcement is overwhelmingly positive, reflecting a significant contract win with a major client, showcasing strong product demand and market position.

Highlights​

  • AUD $330 million, 10-year contract with Trinity Health
  • Implementation of Visage 7 Enterprise Imaging Platform
  • Cloud-based solution
  • Replaces legacy PACS system from nine vendors
  • Benefits over 650 radiologists and thousands of clinicians
  • Transaction-based model with potential upside
  • Rollout starts immediately, phased implementations begin early Q3 2025

Positives​

  • A significant AUD $330 million, 10-year contract with a major US healthcare system.
  • The contract represents a substantial revenue stream for Pro Medicus.
  • The deal showcases the scalability and market acceptance of the Visage 7 platform.
  • The transaction-based model offers potential for additional revenue beyond the initial contract value.
  • The cloud-based implementation aligns with industry trends in North American healthcare IT.

Negatives​

  • The successful implementation of the Visage 7 platform across Trinity Health's extensive network presents a significant logistical challenge.
  • Potential delays in implementation could impact revenue recognition.

Risks​

  • Successful and timely implementation of the Visage 7 platform across Trinity Health's large and complex network is crucial.
  • Any delays in implementation could negatively impact revenue recognition and potentially damage the company's reputation.
  • Competition in the healthcare IT market remains intense.

Future Outlook​

The company's pipeline remains strong across all market segments, and the full-stack nature of this deal is expected to continue as a trend.

Management Comments​

  • Trinity Health is our largest customer to date and the first with a national footprint'
  • Our initiative with Trinity Health is noteworthy for its scope and scale which will see the Visage 7 platform used by over 650 Radiologists and thousands of clinicians who will benefit from the proven differentiation of Visage 7.'
  • Our pipeline remains strong and spans all market segments'
  • As has been the case with many of our recent contracts, this deal is for our full-stack comprising all three core Visage products, a trend we see continuing.'

Industry Context​

This large contract win positions Pro Medicus as a leading player in the North American healthcare IT market, particularly in the cloud-based enterprise imaging space. The deal highlights the increasing adoption of cloud-based solutions and full-stack offerings within the industry.

Next Steps​

  • Immediate commencement of planning for the rollout of Visage 7 at Trinity Health.
  • Phased go-lives targeted to begin in early Q3 2025.

Key Dates​

  • January 2009: Pro Medicus acquired Visage Imaging
  • November 28, 2024: Announcement of the AUD $330 million contract with Trinity Health
  • Q3 2025: Targeted start of phased implementations of Visage 7 at Trinity Health
 
WHOOPS !

another contract announced a week too early ( for my comp. chances )
 

oh what a difference a week ( 5 trading days ) makes

should i have waited , and selected something else after the recent rally ?

i guess time will tell
 

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Company Announcement

04 December 2024

 Co-founders Dr Sam Hupert and Mr Anthony Hall have each sold 1 million PME shares during the current trading window
 The sale represents less than 4% of their respective shareholdings.
 The transaction, in response to approaches from a number of high-quality institutional investors, was conducted at the closing market price on the 3rd December 2024 of $256.73
 Dr Hupert and Mr Hall remain the two largest shareholders in the company with both founders retaining in excess of 24 million shares each.
 Their combined shareholdings after the sale represent 46% of the company’s shares on issue.
The Pro Medicus Board has been advised that co-founders Dr Sam Hupert and Mr AnthonyHall have sold 1 million shares each in the current trading window representing less than 4% of their individual holdings.
The sale was in response to strong approaches from a number of high-quality funds and was done before market at the previous day’s closing price (0%discount).
Dr Hupert and Mr Hall are actively engaged in the company as executives and board members and are committed to its future.
They remain the two key stake holders in the company with their combined holding post this recent sale of 46%.
Dr Hupert and Mr Hall re-affirmed that they do not intend to sell any further shares in PME in the foreseeable future.
The Chairman of the Board, Mr Peter Kempen AM, noted that “this sale of shares by the Founders is part of a progressive sell down, which provides prospective shareholders with the opportunity to invest in the Company and ultimately will increase the “free float””.

Approved by the Chairman of the Board

i hold PME ( 'free-carried ' )

am not so sure an 'increased free float ' is a good thing in a c company like this , seems to be chugging along ( breath-takingly ) fine
 
touched $263.470 so far this morning ,

$275 by the end of the month , surely not

but nice to see me in the green in the early part of the monthly comp.


i hold PME ( 'free-carried ' )
 
touched $265.560 so far

maybe that $275 isn't so crazy

anyway the next big milestone for me is ( a touch over ) $330

that would make it a two thousand bagger for me , how fricken crazy is that ( and it isn't even a speccie )

realistically since some big instos can influence the founders into 'increasing liquidity ' by selling down their personal holdings , there is some rational for urging a share-split ( say one current share becomes 5 or 10 'new shares )

this is NORMALLY a good thing for current holders as the share price USUALLY ( eventually ) climbs up towards the original share price ( before the split

obviously this is just wild speculation on my part , but it is a phenomenon i have experienced before on other shares ( APE and CSR for two )
 

Pro Medicus is bigger than Coles and twice the size of Qantas​

Eric Johnston
The Australian Business

In a gritty corner of Richmond, on the edge of Melbourne’s CBD, is a low rise, grey and otherwise unremarkable building. There’s a pub across the street that does a good chicken parma and full-sized burger.
If you were looking for anything else positive to say, it would be that this small office is close to a train station. Thousands of people pass the Pro Medicus office every day, without it even registering what it is or does. In fact, it’s the biggest company you’ve never heard of. And it remains a remarkable export story.

Valued at nearly $27bn, Pro Medicus is bigger than Coles and twice the size of Qantas. It has flown under the radar to make its name in medical imaging software. You sure you haven’t heard of it? Don’t worry, no one has.

More extraordinary is Pro Medicus’ employee numbers. Even with a growth spurt of late, staff numbers are just 121. And the staff are all deeply loyal to the company, with more than third long termers. Turnover last year was a little above 2 per cent, where most companies would dream about figures in the low double-digit. The small staff numbers give it stunningly low overheads, with most of the expenses redirected into R&D.

Like Commonwealth Bank, Pro Medicus’ shares, last at $256 each, have continued to defy gravity over the past year, surging 30 per cent in November and more than 185 per cent over the past 12 months. In 2015, its shares were changing hands at around $3 each.

The two founders of Pro Medicus got a combined $500m payday this week by offloading a million shares each.
Even after the sell-down, chief executive Sam Hupert and technology director Anthony Hall have $6.2bn each sitting in Pro Medicus shares, with their combined stake at 46 per cent. This puts them easily in the top 15 of Australia’s richest people.

Big league​

Stewart Oldfield of Field Research has been a long time watcher of Pro Medicus and had been telling clients in recent weeks to set their watches on the founder sell down. Why? Because habits are hard to break, and they have conducted similar sell-downs in recent years of similar sizes without any impact. Indeed shares earlier Wednesday jumped more than 2 per cent on the sell-down.

“We like Pro Medicus because they’re playing in such a big pond, and they’re winning in their niche,” he says. “It’s just one of those rare examples of an Australian company playing in the big league, of the world’s largest healthcare system”.

That league is the US private hospital system, where Pro Medicus’ radiology software dramatically speeds up turnaround time and productivity among radiologists.

Pro Medicus got its break from a smart acquisition of US software play Visage more than a decade ago and this is the product it now sells mostly with a single focus in the US. It offers 3-D and even 4-D medical images, fast access and deep remote viewing.

It has just focused on selling to the leading health networks in the US. And every long term contract has pushed its shares higher. It now counts eleven of the top 20 ranked in the US as customers, a calling card that opens the door to others. More recently it has been branching out into cardiology scanning, another specialist high growth area. AI and data storage represent other opportunities.

Structurally, it has plenty of tailwinds. A shortage of radiologists mean that hospitals want to improve radiologists’ productivity. And the Visage technology is a proven way to do so. The low overheads mean its profit margins of nearly 70 per cent are more than three times its nearest competitor. This allows it to direct more as a proportion of revenue back into R&D to keep ahead of its field.
“It’s a two-horse race, and the other horse is nowhere to be seen,” Oldfield says.

Despite its mammoth market size, Pro Medicus is still a small company. Profit last year was nearly $83m, although this was up a sharp 36 per cent on the year. Revenue increased by 30 per cent to $161.5m it has nearly $630m of contracted revenue locked in for the next five years.

“Clearly, maintaining growth rates of 30 per cent-plus year-on-year gets harder as the base gets bigger, but we believe we can maintain our trajectory of strong, profitable growth,” Hupert said recently. “Our clients are growing well above industry average…if they grow, we grow”. There are other markets in Asia and Europe, but Hupert says they are not as evolved as the US. “We don’t want to take our eye off the prize,” he says.

Should I buy Pro Medicus (ASX: PME) shares then?​

With so much blue sky baked into the share price, there are plenty of risks. Pro Medicus is trading at a forward price to earnings ratio of more than 230 times. That’s a lot of earnings to catch up to support the shares. Its competitor too could get its act together or play in a discounting game. And like WiseTech and to a lesser extent Mineral Resources, there is transition risk when it’s time for the founder to step aside. Accounting software firm Xero, which this week hit a record high, is one that has shown it can be done seamlessly.

In a statement on Wednesday, Pro Medicus says the share sale by Hupert and Hall was designed to add liquidity to the shares and no further sales are planned for the foreseeable future. Both “are actively engaged in the company as executives and board members and are committed to its future."
 
Dona Ferentes said:

Should I buy Pro Medicus (ASX: PME) shares then?​

Click to expand...
.
04 December 2024
Co-founders Dr Sam Hupert and Mr Anthony Hall have each sold 1 million PME shares during the current trading window
- The sale represents less than 4% of their respective shareholdings.
- The transaction, in response to approaches from a number of high-quality institutional investors, was conducted at the closing market price on the 3rd December 2024 of $256.73
- Dr Hupert and Mr Hall remain the two largest shareholders in the company with both founders retaining in excess of 24 million shares each.
- Their combined shareholdings after the sale represent 46% of the company’s shares on issue.


.
and ,it seems the sale got away this time.

EDIT.
--- as low as $245.83, and now $248ish
 
  • Low$243.100
  • Previous Close$268.370
well , so that is what increasing liquidity by 2 million shares does

i hold PME ( 'free-carried' )

and it is my entry in the December comp.
 
PME signs $30M, 7- year contract with Duly Health and Care

23 December 2024

HIGHLIGHTS
 PME signs AUD $30M, 7-year deal with Duly Health and Care (DHC)
 Visage to replace legacy PACS and vendor neutral archive throughout DHC
 Contract is for “full stack” - Visage 7 Viewer, Visage 7 Open Archive and Visage 7Workflow
 Visage 7 platform to be implemented in the cloud
 Transaction-based model with potential upside

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly owned U.S. subsidiary, Visage Imaging, Inc., has signed a $30M, 7-year contract with Duly Health and Care (DHC), the largest independent, multi-specialty physician-directed medical group in the Midwest USA.Duly Health and Care brand includes DuPage Medical Group, Quincy Medical Group, and The South Bend Clinic and supports over 40 Radiologists, 1,000 physicians and 150 outpatient clinics.

Based on a transactional licensing model, the contract will see the company’s cloud-engineered Visage 7 Enterprise Imaging Platform (‘Visage 7’), including Visage 7 Open Archive and Visage 7 Workflow modules, implemented throughout DHC providing a unified diagnostic imaging platform.

Visage will complete the migration from DHC’s legacy PACS archive and vendor neutral archive to Visage 7 Open Archive.Planning for the rollout is to commence immediately and will be based on Visage’s proven cloud-based implementation process, with go-live targeted for Q2 of the 2025 calendar year.


Duly Health and Care is an important deal for us as they are in the private radiology/outpatient space, an area of the market where we are starting to see increased opportunity” saidDr Sam Hupert, Pro Medicus CEO.

i hold PME ( 'free-carried' )
“They also join a long list of Visage 7 clients to opt for a fully cloud-engineered solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.
”“Our pipeline remains strong and spans all market segments including academic medical centers,IDNs and the private/teleradiology market.
As has been the case with many of our recent contracts,this deal is for our “full stack” comprising all three Visage products namely viewer, workflow andarchive, a trend we see continuing.”

Authorised by the Board of Pro Medicus Limited.
 
So a contract worth $4m per year, with a company 'worth' $15b, but given the PME effect it will probably go up in market cap more than the total value of the contract revenue! (actually up $165m this morning, so over 5x the contract value.)
 
galumay said:
So a contract worth $4m per year, with a company 'worth' $15b, but given the PME effect it will probably go up in market cap more than the total value of the contract revenue! (actually up $165m this morning, so over 5x the contract value.)
Click to expand...

yep !

crazy metrics to be sure , even allowing for more private groups signing contracts in the near ( up to 6 months ) into the future

but that is how part of the market goes ( but at least PME has made and is making some profits )

BTW they have dropped in 'AI' a couple of times recently into anns. i wonder how much that is worth .. LOL
 
one of my entries in the 2025 yearly comp.

incredibly ridiculous valuations but it seems every new contract win ( or extension of the existing contracts ) drives this higher , helped along by the two co-founders a little less than half the float

Substantial Shareholders List As of 30 Jun 2024​

NAMESHARE HOLDINGSHARES HELD (%)
Hall, Anthony Barry25,179,00024.11%
Sam Aaron Hupert25,137,66024.07%

and the other directors hold a few shares as well

Mr Peter Terence Kempen30/06/2024--629,082----
Ms Alice Joan Morrice Williams30/10/20249001,160----
Ms Deena Robyn Shiff30/06/2024--1,923----
Mr Anthony James Glenning30/06/2024--9,525----
Dr Leigh Bernard Farrell30/06/2024--4,240----


this share is currently my top holding ( about double the value of number two holding )

am only up a pathetic 155,500% on this currently ( it has be much higher this month )

this is crazy town par excellence , so chances are more punters will pile on

BTW i mainly care that they keep on paying divs because it gives me a 240% return on investment per year ( plus franking )
 
Ferret said:
Sounds like you should be sponsoring the 2025 tipping competition @divs4ever !
Click to expand...
nah , i am retired ( and just off a disability pension , pushed onto the old fogey pension

if i took on stuff like that .. next thing they would have me forecasting Melbourne weather ( while living in Queensland )

besides i don't think ASF could handle my humor



BTW i DID say luck is my super-power , i thought PME would climb to a $1 or $2 stock and pay about 6% div. yield a year

reference Kenny Rogers' hit the gambler ( who is trying to turn investor )
 
PME signs $15M – 5 year Visage 7 Open Archive deal with Duke University Health System


30 December 2024

HIGHLIGHTS
 PME signs AUD $15M, 5-year deal with Duke University Health System
 Contract is for the addition of Visage 7 Open Archive Visage 7 Open archive to be implemented in the cloud
 Current Visage 7 license extended for a further 2 years
 Continues PME’s expansion into North American academic institutions
 Transaction-based model with potential upside

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly owned U.S. subsidiary, Visage Imaging, Inc., has signed an additional $15M, 5-year contract with Duke University Health System (Duke) a leading North American academic medical center.
The contract, based on a transaction-based licensing model, will see Visage 7 Open Archive supplement the existing Visage 7 Viewer contract signed in May 2019.
As part of the deal, Duke’s current on-premise instance of Visage will be deployed to the cloud along with Visage 7 Open archive.
The Visage 7 Viewer contract has been extended for a further 2 years to the end of 2029,as part of the deal.
Planning for the rollout is to commence immediately and will involve the migration of Duke’s current archive to the Visage 7 Open Archive.
“This deal that confirms our belief that there is a material opportunity for us to sell Visage 7 OpenArchive to our existing base of “viewer only” clients.” said Dr Sam Hupert, Pro Medicus CEO.
“Not only does this provide clients with a highly performant, highly scalable solution, it is a key step in facilitating their transition from on-premise to cloud, a trend we see continuing.”

i hold PME ( 'free-carried' )

will this be enough to help me struggle into third place in the December comp. ?

i don't need much ( a small up or falling less than the close competitors )
 
PME is a great company but breathtakingly overvalued. Its a very different proposition to the early days of Amazon when Amazon was trading at a huge multiple of revenue. Amazon had a huge a addressable market as did Google, etc. While Promedicus is addressing a much more niche market. Its not like Promedicus can grow earnings per share 50 fold from here.
 
well i bought it in 2011 and didn't think it would get to $1 or $2 by now

i have been spectacularly wrong about predicting this so far ( in a good way )

BUT i think the next logical move would be a stock-split , say one into ten ( new shares ) since the founders keep on responding to calls of 'lack of liquidity '

the other probability is a true healthcare giant will step up and take this over , after all it is NOT a capital intensive business so maintains low debt and lower ongoing costs ( except for R&D )

but i can tolerate the status quo , it is paying me 200% in div. yield per year at the current rate ( or put another way paid back my initial investment 5 times over since 2021 .. no counting the franking credits )

now the billion dollar question is 'grow from here '

1. it is adding 'bolt-on services ' so selling more to existing customers , and although the world isn't awash with MRI devices
2. , one might wonder if they can adapt the current software to interpret ultrasounds better

3. although these contracts are not large they are mostly in North America , one might wonder if they can get market penetration into Europe and Asia , if so they could easily double the customer base

but boy oh boy are they paying a big premium for 'future growth '
 
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