Pro Medicus Limited (ASX:PME) CEO, Sam Hupert discusses the company’s latest financial results and outlook at the ASX Spotlight Series 2016, New York
The business, one of the two co-founders, we founded it just over 30 years ago, specifically for IT solutions for the medical industry. My previous profession, I was a doctor. We specialise in two areas, one is the business end, the billing scheduling interfacing with large health systems. And since 2009, we have a product called Visage Imaging, which does the clinical side. It’s the software doctors use, or radiologists use to view and manipulate and interpret the images, mainly radiology and cardiology.
Here in the US alone, it’s about $2 billion a year and growing, globally it’s estimated about $4.5 billion.
The industry went from film to filmless in the late nineties, early 2000s. I think a) because technology enabled that to happen and at the time, the price of silver, which was the main component of films,skyrocketed. And so everybody has moved into that paradigm, you don’t see film anymore, largely not. Large companies then waded into that pond, the large multinationals.
And we now see that there’s a competitive force from smaller companies, coming in and innovating in the space, because the technology hasn’t really changed much in 15 years. But there’s been a need for that.Two things, one here in the US, all the large hospitals it’s mandated that they have electronic records, of which image is a large part. And the new types of x-ray equipment, creates such large files that current technology or legacy technology, is cracking.
I think we’ve performed strongly. All of our key indicators have headed in the right direction. We’ve had significant growth in our revenue, largely because of input from our US contracts. Our profit line has grown, our cash reserves have grown, but we still remain debt free. So all our key indicators have moved in the right direction, some in a significant percentage, and we’ve been very happy with it.
We think we have a lot more opportunity here in the US. We’ve won some major contracts with some very large health systems and radiology businesses here. We think that we can grow that. We think there’s a lot of opportunity here and that we’re in play with a number of opportunities. So I would expect that we would have a larger base, referenceable base of existing clients that we’ve been implementing. And clearly, we’re hoping to expand that client base, beyond even what we’ve done in the last 12 to 18 months.