ICAD STOCK FORECAST 2025 PRO
In October, Pro Medicus secured a $10m 7-year deal to provide its software to Ludwig Maximilian University in Munich.
The company earns three-quarters of its revenue in the US but the European division is growing quickly. With these bigwigs on board, it should make for easier sales to smaller regional hospitals and imaging clinics, which Pro Medicus now has in sight. Pro Medicus has been slowly adding hospitals to its client list and its software is now used in 7 of the top 20 US hospitals, which speaks to its reputation. The company has the fastest viewing software in the radiology market, so we think it has a good shot at growing market share. Image complexity in radiology - and file sizes - has grown significantly in recent years as technology advances, and Pro Medicus's software is one of the few engines that can handle it. It's a small difference but saves a ton of time. Pro Medicus's trick is to process the file locally into useable images and 3D models, then stream the pixels to the doctor's computer, rather than try to move the whole file.
Each file might be six gigabytes or more, though, so sending hundreds of images is slow. Most imaging software providers take the following approach: when an image is generated, they compress the file, send it through a network, then uncompress it so that it can be modified into useable forms by a doctor on a local computer. The industry could be at a tipping point, where a large number of hospitals will consider switching providers in the next few years. If they find their way to Pro Medicus, these newly captive customers will set the company up for decades.
ICAD STOCK FORECAST 2025 UPDATE
Thankfully, one of Pro Medicus's strengths is its specialisation in managing large data sets, and as imaging complexity grows, we suspect more hospitals will be forced to update their software. Management thinks most hospitals are only open to change once a decade or so, making it difficult to acquire new customers. Large hospitals aren't constantly on the hunt for new imaging software - when they find a provider they like, they tend to stick with it. The company's products also cover basic admin tasks, such as accounting, reporting, scheduling and marketing.
Pro Medicus is carving out a profitable niche making medical software for hospitals - specifically for use in radiology and advanced picture archiving. Here are three healthcare tech hybrids currently on our radar. Hybrid device/software business models show promiseĬombine these two models and you get some truly impressive business potential.