The Pro Medicus Ltd (ASX: PME) share price is up 2% after giving a pleasing AGM update.
Pro Medicus is a healthcare technology business that specialises in enterprise imaging and radiology information systems (RIS) software.
Strong Pro Medicus FY25 update
An annual general meeting (AGM) gives the company the chance to tell investors about the performance of the previous financial year and how the current one is progressing.
Pro Medicus said it’s ahead of its growth-orientated budget in the year to date. It pointed out it had two contract renewals with a minimum total contract value of A$130 million. The company noted three major implementations had been completed, at MSK, Baylor and OHSU.
The company also said it has a strong pipeline across a broad range of opportunities.
One of the most interesting parts of the presentation was that the company said it’s strategically positioned to leverage AI and other “ologies”.
Pro Medicus said its Visage 7 platform was AI-capable and it’s based on GPU technology. The open API enables native integration, according to Pro Medicus. The company said its AI ecosystem is third-party and Visage developed the algorithms. The healthcare company suggested there are joint development and commercialisation opportunities with third parties and academic clients.
The ASX share suggested AI can be an aid to diagnosis, as a second pair of eyes for breast screening. Pro Medicus said researchers found the AI model showed “extremely good” agreement with the radiologists at 99.3%.
Pro Medicus said the RSNA 2024 (a radiology conference exhibition) is shaping up to be its biggest to date.
The company noted that it has considered a small number of acquisition opportunities recently, which met with its criteria but to date none have led to a transaction.
Final thoughts on the Pro Medicus share price
Pro Medicus is one of the best businesses on the ASX. In the US alone, it only has a market share of approximately 7%, but this is growing.
I think the company has a very exciting future, but it has an incredibly high valuation too. I don’t think it makes much sense to invest now, but I’d have said that at the start of the year when it was less than half the valuation it is today.
It’s doing wonderfully for shareholders, but there are other ASX growth shares I’d rather buy.