PRO MEDICUS LIMITED (ASX:PME) has secured a five-year, $16 million contract renewal with Ohio State University Wexner Medical Centre, extending a long-standing partnership while broadening the customer’s use of the Visage imaging platform.
The renewal increases annualised revenue from the contract to around $3.2 million, representing an increase of about 78% compared with the previous agreement. The uplift is being driven by the adoption of additional workflow and cardiology modules alongside Pro Medicus’ core imaging offering.
RBC Capital Markets analyst Jackson Lee said the renewal provided further evidence that customers were not shortening contract terms amid concerns that artificial intelligence could disrupt radiology workflows.
Instead, Lee said healthcare providers were continuing to expand their use of the Visage platform by adopting additional products and functionality.
The latest agreement takes Pro Medicus’ total FY26 contract renewals to $141 million, adding further visibility to the company’s recurring subscription revenue base.
RBC retained its Sector Perform rating on the stock and maintained its $195 per share price target. While describing the Ohio State renewal as relatively modest from a revenue perspective, the broker said the agreement supported the broader investment case centred on strong customer retention and continued platform expansion within existing accounts.