ImExHS signs revenue generating contract with Puerto Rican medical group

ImExHS ASX IME Rad One PSC Puerto Rico medical group
ImExHS initial deal adds around A$237k in total contract revenue for one site, with the potential to convert a further 9 sites.

Australian medical imaging company ImExHS (ASX: IME) has begun the new financial year with aplomb after signing a five and a half year SaaS contract with Rad One, PSC – a medical group with more than 20 years’ experience in the imaging market.

Currently, the company operates in Puerto Rico, where it works through a network for inpatients, emergency rooms, outpatient imaging centres and mobile facilities in more than 10 institutions.

In an announcement to the market, ImExHS said the contract is set to add A$237,000 in total contract value for one site, with the potential to convert a further 9 sites in the future.

According to ImExHS, the newly signed contract paves the way for a “soft launch strategy” into the US healthcare market, with the first 7 months involving a localisation trial which will then revert to a paying contract.

ImExHS products are designed to increase productivity and save money for the users, with a scalable platform that is configured for the future, “while enhancing patient outcomes”.

Cashing in

In terms of revenue generation, the medical imaging company says it will commence invoicing in the early part of 2020 and hopes to integrate a total of 9 additional sites, valued at around US$165,000 (A$234,000) in total contract value (TCV) per year and reaching a potential US$1.65 million (A$2.37 million) in total.

“We are looking forward to gaining valuable insights into US-style workflows through this project, where we will have the opportunity to accelerate the localisation of our suite of capabilities tailored for US market requirements,” said Andres Vanegas, chief sales officer of ImExHS.

“We have agreed with Rad One a 7-month trial for the localisation period, whilst ImExHS US FDA 510(k) certification is pending,” said Mr Vanegas.

The signed contract with Rad One, PSC is expected to be a fruitful one given that the medical group offers services with a wide range of diagnoses and treatments in collaboration with a group of radiologists in the imaging department of different hospitals and clinics in Puerto Rico.

Their team of experts and specialists uses state-of-the-art equipment to provide high-quality imaging tests and image-guided treatments in a safe and efficient environment.

ImExHS thinks it can strike a synergetic relationship with Rad One by supplying its flexible and scalable imaging solutions via its Hiruko branded suite of solutions for next-generation Picture Archiving and Communications System (PACS) and integrated Radiology Imaging System (RIS).

ImExHS says the Hiruko system is “completely cloud-based, vendor-neutral and zero footprint with no need for installed software”. Enhanced features such as a fully web-based voice recognition option and a zero footprint DICOM viewer are some of its advanced features.

In addition to PACS and RIS, imaging technology and management systems can be provided on a Platform as a Service (PaaS) basis when packaged with equipment.

This morning’s news helped ImExHS shares to climb 2% to trade at $0.052 per share.

George is an award-winning market analyst who has authored articles and editorial opinion pieces for multiple publications around the world. He has written about a wide variety of topics including financial markets, stocks, trading, politics and economics.