The Mach7 Technologies Ltd (ASX: M7T) share price is up 7% after announcing some positive news.
Mach7 says that it develops innovative data management solutions that give a view of the patient to inform diagnosis, reduce care delivery delays and costs, and improve patients outcomes.
Mach7’s news
Mach7 announced that it has signed a contract amendment with Adventist Health System/West for the license of the Mach7 PACS (Picture Archive Communication System) solution and associated services.
Mach7 initially contracted with Adventist in April 2020 to provide its eUnity Diagnostic Viewer and Mach7 Universal Worklist to Adventist Health Tulare, one of the hospitals in the Adventist Health network. Today, Mach7 has signed a contract to provide the full PACS solution.
The March7 PACS solution is part of the Adventist PACS replacement program which is being rolled out across all 22 of its hospitals. The contract is valued at over $7.9 million, including migration services and five years of support and maintenance.
The software deployment will occur in stages as software licenses are ordered by individual hospitals in the Adventist Health group.
Mach7 is expecting to receive the first of the orders this quarter from three hospitals, which is expected to comprise approximately 7% of the total contract value. Mach7 expects to receive further orders this financial year, with a goal of having the majority of the Adventist Health hospitals using the March7 PACS by the end of the 2021 calendar year.
Management comments
Mach7 CEO Mike Lampron said: “I am delighted to partner with Adventist for their PACS replacement project. The collaborative partnership we have established with Adventist Health has allowed us to help them expand their enterprise imaging growth strategy. I am confident Mach7’s full enterprise PACS solution will provide a flexible and scalable foundation that meets the needs of radiologists across their health network.”
Summary thoughts
The most important thing for software businesses is actually winning clients and generating profit, it’s not just about making the software. Mach7 is gaining traction and could be one to watch over the next few years if it can keep winning contracts like this.
Mach7 isn’t the only one that could be worth following, other ASX growth shares in the healthcare space like Volpara Health Technologies Ltd (ASX: VHT) could be worth a look.
