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PRO MEDICUS LIMITED Capital/Financing Update 2007
65579_rns_2007-04-25_ba38ef40-27ac-48c5-a390-8bc6ded18fe8.pdf
Capital/Financing Update
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450 Swan Street, Richmond, Victoria 3121, Australia
Telephone (03) 9429 8800 Fascimile (03) 9429 9455
Pro Medicus signs major digital imaging sale
Well positioned to benefit from industry conversion to digital
26th April 2007, Melbourne: Australia's leading medical IT and e-health provider Pro Medicus Limited (ASX:PME) today announced a significant sale of its full suite of practice management and digital radiology products to MDI Chelmer Pty Ltd.
MDI Chelmer was formed in late 2006 when MDI Radiology with practices at Manningham and Malvern (MDI) combined with Chelmer Imaging Group, one of Melbourne's original radiology practices. The combined group now has 13 locations throughout Melbourne and today sits in the 'Top 5' of Melbourne's private radiology businesses.
The deal includes the rollout of Pro Medicus practice management and digital imaging solutions to the 11 practices previously under the Chelmer name and their integration into the MDI network. This will result in MDI Chelmer becoming one of the largest fully integrated digital radiology installations in Australia.
Pro Medicus managing director Dr Sam Hupert said, "MDI was one of the early adopters of our digital technology opening its first integrated digital practice in March 2004. We believed then there would be opportunities for us as these independent practices expanded and it is gratifying to see that we have been a part of this growth."
"Having experienced the benefits of the Pro Medicus integrated solution at our Manningham and Malvern practices we were keen to extend it across our expanded network including the 11 practices previously owned by Chelmer Imaging Group," said MDI Chelmer Managing Director, Mr Chris Ericksen.
"The product allows us to deliver a superior service to our referring doctors and their patients and gives us an immediate competitive edge in practice efficiency, speed and versatility. Our staff also benefit with the more technically advanced working environment. With Pro Medicus we have a reproducible and highly scalable platform that allows for future growth."
Pro Medicus first released its digital integration technology in 2002. Since then it has been implemented in a broad range of radiology practices in Australia, Canada and the US.
"It is becoming more widely accepted within radiology that Pro Medicus digital integration provides significant productivity improvements. These can be in excess of 30% and makes it inevitable that digital radiology is the way of the future," said Dr Sam Hupert. "This, combined with increasing margin pressure in the industry leads us to believe that the trend towards digital will accelerate rapidly from here. Given the strong position of Pro Medicus in the market and the proven capability of our offering, we are ideally placed to continue to benefit from that trend."
Enaulries:
Dr Sam Hupert Managing Director Pro Medicus Limited Phone: 61 3 9429 8800 Rudi Michelson Monsoon Communications Phone: 61 3 9620 3333
About Pro Medicus
Pro Medicus Limited [ASX: PME] is Australia's leading medical IT and e-health provider. Founded in 1983, the company provides a full range of integrated software products and services to individual, corporate and public health providers. Over 23,000 doctors are now connected to the company's ehealth service, promedicus.net, with the number of transactions across the network between GPs and specialists growing strongly.
A key growth area for the company is the adoption of its digital technology by radiology providers as they move away from analogue systems. An increasing number of Australian practices are taking up Pro Medicus' digital technology and the company is now also making substantial inroads into the North American market. In late 2004, the company signed a watershed three-year $10 million deal with Agfa to exclusively license the Pro Medicus Practice Management and digital radiology software products for the large and rapidly growing private Imaging Centre market in the US and Canada. It subsequently announced a $2.6 million contract with a large Canadian radiology group which was installed in 2005.