Pro Medicus (ASX:PME) share price rises on major US contract win

The Pro Medicus Ltd (ASX: PME) share price is up after the company announced another large US contract win.

Pro Medicus describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.

Latest contract win for Pro Medicus

The company announced it has signed a $25 million, 7-year contract with the University of Washington’s UW Medicine, a tier 1 academic health system based in Seattle.

Pro Medicus pointed out that UW Medicine has multiple campuses throughout the Seattle area and employs 29,000 healthcare professionals, researchers and educators. The company also noted it’s the home of the “highly regarded” University of Washington School of Medicine.

This contract is based on a transactional licensing model, and it will see the company’s cloud-based Vistage 7 Enterprise Imaging Platform implemented throughout UW Medicine, providing a unified diagnostic imaging platform across the network.

Planning for the rollout has commenced immediately – the initial go-lives are planned for the second half of the 2023 calendar year.

Pro Medicus said that UW Medicine has opted for a fully cloud-based solution, which is a “trend that has taken a major foothold in the North American healthcare IT market.”

Management commentary

Pro Medicus CEO Dr Sam Hupert said:

UW Medicine joins our growing list of Tier 1 academic clients and will provide us with a strong presence in the Northwest region of the United States. With its highly regarded University of Washington School of Medicine, it has the added benefit of exposing Visage to an ever-increasing number of the doctors of tomorrow.

Our pipeline remains strong and spans all market segments, and as has been the case with many of our recent sales, this deal is for our “full-stack” comprising all three Visage products namely viewer, workflow and archive, a trend we see continuing.

Final thoughts on the Pro Medicus share price

The Pro Medicus share price has done extremely well. Surprisingly, the business has risen by 30% in the last year, despite the higher interest rates. This company may well be the best business on the ASX and it continues to grow at an impressive pace.

With such a high earnings valuation, it’s difficult to say it’s good value today. But, I don’t know where the Pro Medicus share price is going next.

For me, there are other ASX growth shares that may make wiser buys.

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