pdfPME Signs $5M Deal with Zwanger-Pesiri – Acrobat pdf 115k

12 January 2015

Key Points:

  • Zwanger-Pesiri to use Pro Medicus’ Visage 7 for primary diagnoses and clinical distribution of medical images.
  • Five-year deal, with base value to PME of A$5 million (US$4.1 million).
  • Transaction-based model with potential upside.
  • Further reinforces Visage’s position in the private outpatient (Imaging Centre) market.

Leading imaging IT company Pro Medicus Limited [ASX: PME] today announced the signing of an A$5 million (US$4.1 million) five-year contract with Zwanger-Pesiri Radiology (“Zwanger-Pesiri”) – a highly respected radiology group and outpatient imaging provider on New York’s Long Island.

The group will use Pro Medicus’ Visage 7 enterprise viewer technology as the core component of its Deconstructed PACS® enterprise imaging strategy enabling the group to provide exceptionally fast, state-of-the-art imaging to their reading radiologists and referring physicians.

Zwanger-Pesiri is one of the largest US providers of outpatient imaging services with 18 imaging centers and 58 radiologists, regionally distributed across Long Island. The group is known for acquiring the latest in advanced imaging technology being the first private radiology practice in the US to purchase a PET/MRI (positron emission tomography/magnetic resonance imaging) scanner. This is in addition to significant recent investments in 3D mammography or digital breast tomosynthesis (DBT) and other leading edge technologies.

“Based on the continued growth of the Zwanger-Pesiri imaging center network, and our strategic investment in the latest modalities, it was apparent that our legacy PACS could not keep up with our needs,” said Dr Steven L. Mendelsohn, CEO. “We are committed to using the most advanced technology and did an extensive review of the available systems on the market. Once we experienced what Visage 7 offered, using our own studies across our own network, it was immediately clear that this was the system for us. We see our investment in Visage as a key enabler to our future growth.”

The contract, which is based on an operational (transactional) model, covers a five-year term with an estimated value to Pro Medicus of A$5 million (US$4.1 million) over the life of the contract, with potential for further upside.

“This deal is strategic for us in many ways,” said Dr Sam Hupert, CEO of Pro Medicus. “Not only does it provide us with a key reference account on the US East Coast, it will open up further opportunities for us in the large but fragmented US outpatient/imaging centre market, a market currently undergoing a major wave of consolidation. It adds to the significant wins we have had in the US over the past 12 to 18 months confirming our view that unlike others, we can address the entire spectrum of radiology practices ranging from remote reading/teleradiology groups, outpatient imaging, all the way to some of the largest health systems in the country.”