e-health company Pro Medicus (ASX: PME) has secured a five year agreement with one of the world’s largest radiology groups, Virtual Radiologic (vRad), under which Pro Medicus’ Visage 7 Enterprise Imaging Platform will become a central component of vRad’s technology platform.
vRad employs more than 400 radiologists who read around 7 million radiology studies annually.
Pro Medicus’ Visage 7 Enterprise Imaging Platform will enable vRad to orchestrate when and by whom studies are read from anywhere within their owned partner radiology groups (hospitals and offsite), as well as their vast teleradiology network.
The first phase of the rollout is material in its own right yet represents a relatively small percentage of vRad’s overall volume, so there is potential for significant upside in this contract.
The first phase of Visage implementations are planned for Diagnostic Imaging and the New York Radiology Alliance, both part of the vRad Alliance Network.
North American market potential
Pro Medicus said a deal of this magnitude, with such a large and prominent client, helps put the company firmly on the map in the U.S. market.
The North American market represents some of the biggest opportunities for the company, particularly for the pay-per-view product model.
Following the sale of its Amira software platform business last year, Pro Medicus has the strongest cash position the company has ever had, around A$14 million at the end of December 2012, with no debt and conservative intangible asset values.
The company has a strong product platform, a sales model that meets customers’ needs, a large number of opportunities – particularly in the U.S., and a strong balance sheet backing.
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