20 November 2018; Company Announcement – Pro Medicus Signs Partners HealthCare – Acrobat pdf 119k

Highlights

  • PME signs 7 year deal with Partners HealthCare in the USA
  • Initial rollout to include Massachusetts General Hospital and Brigham and Women’s Hospital, ranked fourth and twentieth best hospitals in the USA 
  • Estimated value to PME for the initial rollout in excess of AUD $27M 
  • Scope to expand to the rest of Partners HealthCare in the future 
  • Transaction-based model with significant potential upside 
  • Two of the top four hospitals in the USA are now Visage clients 

Leading health imaging company Pro Medicus Limited [ASX: PME] today announced its wholly-owned US subsidiary, Visage Imaging, Inc., has signed an AUD $27 million, 7-year contract with Partners HealthCare (“Partners”), the largest health system in the state of Massachusetts and one of the largest and most respected health providers in North America. 

Partners was founded in 1994 by Massachusetts General Hospital (“MGH”) and Brigham and Women’s Hospital (“BWH”). Partners is a national leader in biomedical and data science research, including the MGH & BWH Center for Clinical Data Science. 

The contract, based on a transaction licensing model, will see Pro Medicus’ Visage 7 technology implemented at Partners’ two flagship hospitals, MGH and BWH, eliminating their legacy PACS with scope to expand to other Partners network hospitals at a later date. 

Dr Sam Hupert, Pro Medicus CEO, described the deal as a ‘milestone’ for Pro Medicus. “Not only is it our biggest deal to date, there is the potential for further upside within the Partners network after this initial rollout is completed. In addition, MGH and BWH are two of the most prestigious medical institutions in North America renowned for their medical research, as well as their key roles as teaching hospitals for Harvard Medical School. The fact that both institutions selected Visage 7 as their platform of choice reinforces our view that Visage’s leading edge technology is suitable for a broad range of clinical environments, including the most sophisticated and demanding users.” 

Planning for the rollout has begun with the first sites scheduled to be implemented in the fourth quarter of FY19. 

Dr Hupert added: “This deal has repositioned us in the market. Not only does it add to our rapidly growing North American footprint, we now have two out of the top four US hospitals standardising on our platform, which we see as a catalyst for growth in both North American and other global markets.”