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PME - Pro Medicus

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One of my picks in the 2025 stock tipping comp. Have been following this stock for a while but yet to invest, as spare capital being used for real estate upgrades. While the price of PME has gone up, one of my friends who is a retired doctor feels the management has the strategy right for this share to be the next CSL.

Iggy
 
@mullokintyre

PME signs $33M, 9-year contract with University of Kentucky

16 January 2025

HIGHLIGHTS PME signs AUD $33M, 9-year deal with the University of Kentucky (UK)

 Visage to replace legacy PACS and vendor neutral archive throughout the UK system
 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 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 a $33M, 9-year contract with the University of Kentucky, the preeminent academic health system in the state of Kentucky.University of Kentucky (UK) HealthCare is a comprehensive healthcare system that includes a network of hospitals, clinics, and specialized medical services.
UK HealthCare is anchored by the UK Albert B. Chandler Hospital, which is a leading medical facility in the region, offering advanced treatment options and cutting-edge research.
The system also includes the UK Good Samaritan Hospital, which provides a range of services including emergency care, surgery, and rehabilitation.UK HealthCare is affiliated with the University of Kentucky College of Medicine, ensuring a strong emphasis on education, research, and innovation.Based on a transactional licensing model, the contract will see the company’s cloud-based Visage 7 Enterprise Imaging Platform (‘Visage 7’), including Visage 7 Open Archive and Visage 7 Workflow modules, implemented throughout UK providing a unified diagnostic imaging platform. Visage will complete the migration from UK’s legacy PACS archive and vendor neutral archive to Visage 7 Open Archive.
Visage 7 will also provide enterprise distribution of images integrated to UK’s electronic health record (EHR).Planning for the roll-out 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.
“University of Kentucky joins our growing list of academic clients,” said Dr Sam Hupert,Pro Medicus CEO. “They also join a long list of Visage 7 clients to opt for a fully cloud-based 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. 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 and archive, a trend we see continuing.”

Authorised by the Board of Pro Medicus Limited.

please note UK stands for University of Kentucky , here

i hold PME ('free-carried' )

whew ! my 2025 yearly comp. hopes needed a boost
 
@mullokintyre

PME signs A$53M, 7-year contract with BayCare
4 February 2025
HIGHLIGHTS
• PME signs AUD $53M, 7-year contract with BayCare
• Visage to replace legacy PACS and workflow throughout the BayCare system
• Contract is for Visage 7 Viewer and Visage 7 Workflow
• Visage 7 platform to be implemented in the cloud
• Continues PME’s expansion into North American IDN Market
• 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 A$53M, 7-year contract with BayCare,
the leading health care system in the Tampa Bay and central Florida regions of the U.S.
Based on a transactional licensing model, the contract will see the company’s cloud-based
Visage 7 Enterprise Imaging Platform (‘Visage 7’), including Visage 7 Viewer and
Visage 7 Workflow modules, implemented throughout BayCare providing a unified diagnostic
imaging platform.
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 late Q3/Q4 of the 2025 calendar year.
BayCare connects individuals and families to a wide range of services at 16 hospitals and
hundreds of other convenient locations:
• The system is West Central Florida’s largest provider of behavioral health and pediatric
services and its provider group, BayCare Medical Group, is one of the largest in the region.
• BayCare’s diverse network of ambulatory services includes laboratories, imaging, surgical
centers, BayCare Urgent Care locations, wellness centers and one of Florida’s largest
home care agencies, BayCare HomeCare.

• BayCare’s graduate medical education programs are expanding to help ensure West
Central Florida and BayCare continue to attract the best physicians. By mid-2025,
BayCare will be operating 18 programs with 283 residents and has committed to expand to
650 residents by 2029.
• BayCare has more than 32,000 team members, including more than 800 employed
physicians.
• BayCare’s mission is to improve the health of all it serves through community-owned,
health care services that set the standard for high-quality, compassionate care. For more
information visit BayCare.org.
“BayCare joins our rapidly growing list of integrated delivery network (IDN) clients,” said
Dr Sam Hupert, Pro Medicus CEO. “They also join the 70% of all Visage 7 North American clients
to opt for a cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the
standard in the North American healthcare IT market.”
Dr Hupert continued, “Our pipeline remains strong and spans all market segments.”

Authorised by the Board of Pro Medicus Limited.

( i hold PME 'free-carried' )
 
@mullokintyre

Pro Medicus Limited interim results

13 February 2025

HIGHLIGHTS
 Revenue from ordinary activities $97.2m – up 31.1%
 Underlying profit before tax $69.9m – up 42.9%
 Net profit $51.7m – up 42.7%
 Underlying EBIT margins increase to 72% (HY24: 66%)
 Cash and other financial assets $182.3m – up 17.7%
 Company remains debt-free
 Fully franked interim dividend 25c per share

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced a half-year net profit of $51.7 million for the six months to the end of December 2024, 42.7% higher than for the previous corresponding period.
Revenue from ordinary activities was $97.2 million, up 31.1%.
The result was driven largely by increased revenue from North America (revenue $86.4 million, up 34.6%).
The company’s cash and other financial assets in December 2024 were $182.3 million, an increase of 17.7% in the six months.
Pro Medicus announced a fully franked interim dividend of 25c per share.
The company remains debtfree.
During the period Pro Medicus won key contracts with Trinity Health, Lurie Children’s Hospital and Duly Health and Care.
These contracts were for a combined minimum amount of $365 million spread over 7-10-year deals.
In addition, the company renewed contracts with Mercy Health in the USA ($98 million, 8 years) and with a large Australian radiology practice ($32 million, 5 years).
Additional modules were also added to existing contracts at both Duke Health (archive addition, $15 million, 5 years) and NYU Langone (archive addition, $24 million, 5 years).
Pro Medicus CEO Dr Sam Hupert said he was very pleased with the result, which was a record one for the company in terms of both revenue and net profit, as well as new contract wins, renewals and upgrades.
"We feel it’s a strong result, underlined by record contract wins and several key implementations, including BaylorScott & White (BS&W) – which was fully implemented in 11 months from date of signing, a record for the industry.
BS&W contributed three months of full revenue in the half and will help build the base for the second half with a full 6 months of revenue.” he said.
"In addition, contracts won in the first half including Trinity Health will start to contribute revenue in the first half of FY26 and beyond as these implementations ramp up.”
“Duke and NYU Langone adding Visage 7 Open Archive to their existing contracts as they transition from on-premise to Cloud as well as the two large contract renewals we signed in the half, demonstrate long-term confidence in our technology and products.”
The company continued to enjoy strong margins – 72% compared to 66% last year.
"Margins improved more than we expected, largely because of a step up in transaction revenue,” he said.
“Dr Hupert said the company’s pipeline remains strong, across all client classes.
“We continue to see many opportunities in the USA – many on the back of the annual RSNA conference which in 2024 was our biggest to date.”
Dr Hupert said importantly the company would continue to address all market segments and sizes. “The three contracts we won in the period demonstrate our flexibility,” he said.
“Lurie Children’s Hospital a top paediatric hospital, Duly Health and Care a regional private network and Trinity Health one of the biggest IDNs in the US.
Our modular approach also continues to provide flexibility and scalability, as evidenced by the increasing number of clients choosing the full stack of all three Visage products – Viewer, Workflow and Archive as well as existing clients in Duke and NYU adding modules, trends we see continuing.


Authorised by the Board of Pro Medicus Limited.

i hold PME ( 'free-carried ' )

ridiculously over-valued ( IMO ) , but will it test $300 today
 
3 February 2025

Interview with Dr Sam Hupert, CEO Pro Medicus Limited
 First half results
 Implementations and Contract trends
 North American TAM and market segments
 Elucid, AI and other ologies
 Recent wins and pipeline
Q1. What are your general thoughts on the result, which included revenue from ordinary activities of $97.2m,
up 31.1%, and net profit of $51.7m, up 42.7%
A: It was another record result with all our key financial indicators moving in the right direction. It was our biggest half
in terms of upticks in revenue, net profit growth and retained earnings.It was also by far our biggest half in terms of
new contract wins, contract renewals and upgrades, all of which we think set us up for the second half.
Q2. You achieved several key implementations during the period, including at Baylor Scott & White – which
was fully implemented in record time, 11 months from date of signing. Are implementations getting easier?
A: We keep refining our implementation methodology which we believe is the best in the business bar none. We
learn from each one we do, and whilst no two are alike, the more we do the more commonality we find. Cloud is also
a major factor that has helped us streamline our implementation capability, particularly for large distributed multi-site
clients.
Q3. How important is it to complete implementations in a timely fashion, to bring forward revenues as soon
as possible?
A: Once a client has made the decision to move to our platform, they usually want it implemented as soon as
possible which suits us as the sooner the client is fully live, the sooner we get the full run-rate of revenue going
forward. So, it’s in both parties’ interests to complete the implementations in as timely a manner as possible. It also
reinforces our reputation for rapid implementations, which we see as a strategic advantage over our competitors.

Q4. Trinity Health is one of the biggest health networks in the USA, and your contract with them is the
biggest in Pro Medicus’s history. Do you see this as opening up a new area for you among the bigger health
networks?
A: Trinity is one of the top ten IDNs in the USA, so the fact that we have won this certainly increases awareness
among other similar-sized healthcare enterprises. But as we have always said, our offering is suitable for all groups,
ranging from the largest players like Trinity through to some of our smaller niche clients such as Lurie Children’s
Hospital and everything in between, Duly being a case in point, all of which we also signed in the half.
Q5: Despite the size of the contract – A$330M – the contract with Trinity Health moved your footprint in the
US market from 7% to over 8%. What does this say about the size of the Total Addressable Market (TAM) in
the USA?
A: I think it serves to reinforce just how large an opportunity the USA is for us. Roughly 60 cents of every dollar spent
on healthcare globally is spent in the USA. It is a huge market so there is plenty of runway despite a slew of recent
wins.
In terms of TAM, we look at it through two prisms. This first is from a product perspective and, as we have said
before, we believe we are unique in that we can address close to 100% of the market with the one product offering.
The second is commerciality - when is an opportunity is too small to be commercially viable. There is no question that
this threshold has been lowered by a combination of “full stack” which increases the dollar value of these sales, and
cloud. Based on our analysis we believe we can address about 85% of opportunities and make them work
commercially, with the remaining 15% being too small. That said, these smaller players are disappearing, being
absorbed by the larger players because of governance and cyber security costs so if anything, the 15% is shrinking
making our TAM larger.
Q7: Can you see this changing at all? Might you end up specialising in one particular area – either in size or
segment: academic/teaching hospitals, integrated delivery networks (IDN) or corporate/private imaging
centres?
A: No. We continue to have success in all segments including the private-imaging-center market, which previously
was dormant but is now starting to provide opportunities for us, the most recent being Duly. We anticipate further
opportunities in this segment as we do in the other segments as witnessed by recent sales to Trinity Heath and
BayCare in the IDN space and University of Kentucky in the academic space.
Q8: You continue to increase spending on R&D? How important is this for the future of the company?
A: As I often tell our team, “There are two states in software, the quick and the dead and you don’t want to be dead.”
Continual investment in R&D is fundamental to our future, not only in terms of new products such as cardiology and
AI, but also in continuing to improve and enhance our Visage 7 suite of products. It is in our DNA. We release two,
sometimes three, material updates every year, packed with new feature/functions, to ensure that we increase our
technological lead over our competitors.

Q9: What are your thoughts on PME’s margins during the period, which increased significantly compared to
the same time last year?
A: We have previously provided guidelines to the market that our margins would stay roughly within the previous
range, however the scale of new implementations, including Baylor Scott and White and others, have meant that the
revenue growth has once again outstripped growth in expenses, hence the increase.
Q10: Nvidia’s share price was hit hard recently by the emergence of a rival Chinese company in the AI space.
Do you keep an eye on rivals in the medical imaging space? What do you learn from them if anything?
A: Most if not all rivals in the medical imaging space are either US or European-based, so from a core platform
perspective, we have not seen competitors from China. However, we do continually keep, as much as one can, an
eye on what is happening in the industry to make sure that we recognise any emerging trends, as we did with Cloud,
and are clearly actively monitoring the AI space as it pertains to medical imaging.
Q11: You have cash reserves of more than $180 million. What are your plans for this?
A: Primarily we look at our cash in terms of what we need to invest in our business which we continue to do as we
continue to build capability. Secondly, we look at returns to shareholders as evidenced by our dividend policy. We
also like to keep some dry powder in terms of co-investments and/or future M&A to provide us with maximum
flexibility for opportunities as they present themselves.
Q12: What progress have you made with Elucid? Are you looking at other such opportunities?
A: Elucid has recently received FDA approval for its Plaque IQ Technology, which they are looking to commercialise
soon. We will be looking to offer that as soon as it is available. They are also making progress with FDA clearance for
its FFR application, which we would like to commercialise once that has been achieved. So, while it has taken a
touch longer than initially expected, we believe that the commercialisation phase, particularly for Plaque IQ, will start
in the next six months.
Q13: Any comment on progress on AI and ‘other ologies’ during the period?
A: We have continued to make good progress on both fronts. We showed some of our new ‘work in progress’ AI
projects at RSNA in December and received very positive feedback. We have also continued to make progress with
our cardiology offering and have signed our first contract for our new cardiac echo-package, which we are looking to
implement in the April timeframe. Whilst the contract is with one of our smaller customers, we see this as a material
first step.

Q14: Can you add anything about PME’s pipeline?
A: We have recently had unprecedented success in converting pipeline to contract. In the last two months alone, this
has resulted in contracts with a minimum value of $485M including U Kentucky and BayCare which were signed in
January, so it has been incredibly dynamic of late. Offsetting these are those opportunities that we have been
working on throughout 2024 that continue to progress through the pipeline as well as new opportunities that came
from the RSNA which was our most successful RSNA to date. So, we continue to build the pipeline of opportunities
across all market segments, and across all client sizes.
Thank you, Sam
Interviewer: Richard Allen
Oxygen Financial Public Relations

Authorised by the Board of Pro Medicus Limited

i hold PME ( 'free-carried ' )

ridiculously over-valued ( IMO )

and THAT is how you sell your 'growth story '
 
Certainly wildly overpriced, but no doubt its a fantastic business with great execution. For me its a reminder why its so important to look for and discover business excellence as an investor. Business quality really is the secret sauce. Its also the thing that makes it much easier to continue to hold when price runs way ahead of value too, because it builds conviction.

So the search continues for another business like PME in its early stages!
 
galumay said:
Certainly wildly overpriced, but no doubt its a fantastic business with great execution. For me its a reminder why its so important to look for and discover business excellence as an investor. Business quality really is the secret sauce. Its also the thing that makes it much easier to continue to hold when price runs way ahead of value too, because it builds conviction.

So the search continues for another business like PME in its early stages!
Click to expand...
i spotted something interesting earlier in the week ( NOT a recommendation to buy )

but in the same area healthcare/tech ,

CURVEBEAM AI LIMITED​

ASX: CVB

am still wading through the research , it raises SOME red flags ( to me ) .. BUT would you be rescued by a take-over or will it gain traction ( or topple into the abyss .

BTW i sold 95% of the original PME holding , and is still my largest holding more than double the $value of MQG ( where i sold down more than 66% of the holding )

i am thinking potential take-over target , but still need to research more before reaching for the wallet
 
HIGHLIGHTS
 Revenue from ordinary activities $97.2m – up 31.1%
 Underlying profit before tax $69.9m – up 42.9%
 Net profit $51.7m – up 42.7%
 Underlying EBIT margins increase to 72% (HY24: 66%)
 Cash and other financial assets $182.3m – up 17.7%
 Company remains debt-free
 Fully franked interim dividend 25c per share
 
divs4ever said:
i spotted something interesting earlier in the week ( NOT a recommendation to buy )
Click to expand...

Too early to see if its actually an investible business IMO, share count is a worry, looks like they had a consolidation then a massive CR, cash burn is furious, especially when you add back in gov grants. The biggest red flag for me is the AI nonsense, its neither artificial nor intelligent! Its just enhanced data sorting and recognition.
 
galumay said:
Too early to see if its actually an investible business IMO, share count is a worry, looks like they had a consolidation then a massive CR, cash burn is furious, especially when you add back in gov grants. The biggest red flag for me is the AI nonsense, its neither artificial nor intelligent! Its just enhanced data sorting and recognition.
Click to expand...
yes it LOOKS like a R&D abyss , and worse looks like it is selling specialist hardware to run the software

and yes the buzzwords raised another red flag for me

BUT is it a possible take-over target , say by a company with it's own software development team , that would be my first scenario , but i notice the directors have no real distractions by sitting on other boards and MIGHT be being paid in shares and options .. maybe they are motivated to get this profitable ( or sold )

i would be looking for under 10c 'for a speccie stab ' .. so far

Pro Medicus reports record first-half but shares tumble on lofty valuation​



www.marketindex.com.au

Pro Medicus reports record first-half but shares tumble on lofty valuation

A strong first-half result wasn’t enough to push Pro Medicus shares higher. Here's what you need to know.
www.marketindex.com.au www.marketindex.com.au
 

"I’ll be buying" – Why Jun Bei Liu sees more upside in Pro Medicus​


www.livewiremarkets.com

"I’ll be buying" – Why Jun Bei Liu sees more upside in Pro Medicus

Despite sky-high valuations, Jun Bei Liu is bullish on Pro Medicus. She first bought at $25 - now it’s 10x’d. How much higher can it climb?
www.livewiremarkets.com www.livewiremarkets.com

i hold PME ( 'free-carried' ) ( bought in June 2011 )

yes i can see the path for growth .. one day they will sell more subscriptions for their software , in Europe , Asia , India , South America etc etc , and since it is software ( usually leveraging the cloud ) it escapes lots of costs involved in 'doing business ' .. BUT how much do you pay for that growth ?

now OK if you are young (er ) and bold (er ) what can you possibly dream of .. for PME to double or triple in the next 5 years , perhaps

now a real game-changer would be if management did a share-split say one share turned into 10 or 20 new shares , so most retail holders can throw a grand or two at this company ( if they haven't already bought in )
 
I have no idea who Jun Bei Liu is, but commentary like that is really just irresponsible, it just fuels FOMO and other irrational behaviour.

A share split doesnt make sense, it doesnt change the value or price of the business. Someone silly enough to, "can throw a grand of two at the company" now.
 
galumay said:
I have no idea who Jun Bei Liu is, but commentary like that is really just irresponsible, it just fuels FOMO and other irrational behaviour.

A share split doesnt make sense, it doesnt change the value or price of the business. Someone silly enough to, "can throw a grand of two at the company" now.
Click to expand...
thewest.com.au

Star manager leaves Tribeca with $1.5b fund

Star Australian share fund manager Jun Bei Liu is striking out on her own with the backing of her long-time employer Tribeca.
thewest.com.au thewest.com.au

!!!

a share split makes perfect sense for this stock , where the two founders still hold almost 50% of the company between them and i would guess some staff and other directors would hold a few as well

there have been two founder ( both of them together ) sell-downs 'to help market liquidity

so apart from management/staff selling more shares ( and risking losing control of the business ) the options 'to help market liquidity ' are a share-split or a share placement ,, but then the company has very little debt and a cash stock-pile

i would think the insiders should stop off-loading shares , so the traders move elsewhere ( especially the big index funds , but management has been persuaded to sell down twice before ( so they haven't got 'diamond hands ' )

BTW when a company does a share-split the tendency is for the share price to move towards ( and past ) the previous pre-split price

take for example APE , i bought some in October 2011 @ $10.54 , in May 2012 they did a share split one old share become 5 new shares ( so my shares now owed me $2.11 a new share ) , now sure the share price has had it's ups and downs ( like in March 2020 when i bought some @ $2.65 )

but who would have thought a 100 year old car dealership chain would go five-bagger in recent years , but the major share-holder at APE holds tightly and accumulates in weakness , and here we are above $12 again .

a share split gives more smaller( retail ) investors the ability to buy modest parcels and feel like they have got a worthwhile holding at more than $250 a share a thousand bucks doesn't even get you 4 of them
 
divs4ever said:
a share split gives more smaller( retail ) investors the ability to buy modest parcels and feel like they have got a worthwhile holding at more than $250 a share a thousand bucks doesn't even get you 4 of them
Click to expand...

Well they are fooling themselves, they own exactly the same proportion of the company regardless of the split. The value and price of the business doesnt change either. The only thing changing here is their 'feelings' which is a pretty strong indication that investing is not for them!

(a share split wont help liquidity, the proportional holdings stay exactly the same.)

divs4ever said:
BTW when a company does a share-split the tendency is for the share price to move towards ( and past ) the previous pre-split price
Click to expand...

You really need to think thru the implications of what you are saying. If it were true, (and its not, as a rule), every #shitco would be doing share splits to make their price go up. The only thing in the long run that increases price is the value increasing. Changing the capital structure does not add value.
 
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