Alicidion lands bumper contract as the UK’s NHS goes digital
Health & Biotech
Health & Biotech
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Digital health platform Alcidion (ASX:ALC) has landed another big contract with the UK’s National Health Service (NHS).
The company announced it will provide its Miya Precision healthcare solution to South Tees — a network of the NHS which serves regional north-east England.
The total contract value is for $9.5m over a five-year term, the bulk of which will be recognised as recurring licence fee revenue.
Shares in ALC got a jolt in morning trade, climbing back towards post-crisis highs with a gain of 40 per cent.
Alcidion’s distribution success with the NHS has been a core strategic focus.
Key contracts with UK hospitals underpinned a barnstorming 2019 rally, which saw the stock rise from 4c to 27c.
Alcidion said the deal with South Tees is the largest Miya Precision contract it’s signed to-date.
The South Tees NHS network comprises over 1,000 beds with more than 9,000 staff serving a regional area of 1.5m people.
Alcidion said its Miya Precision software will allow the hospital network to digitise its patient records.
It addition, it includes a practical integration function, where patient data currently stored in different systems can be standardised.
The platform will allow information to be “consolidated and represented in a common format, for application of artificial intelligence and use in advanced clinical decision support”, ALC said.
Alcidion said South Tees will also be the second UK hospital network to deploy Miya Precision in conjunction with its Better OPENeP.
Along with digitisation of patient records, Better OPENeP allow South Tees to “digitise its prescribing and medicines administration processes”, ALC said.
South Tees consultant Dr Andrew Adair said the network was motivated to complete the rollout of Miya Precision during a period of intense stress on hospitals caused by the pandemic.
“This technology is designed for clinicians by people who really understand clinicians,” Adair said.
“Our agreement with Alcidion will allow us to accelerate our digital maturity and adopt modern technology that will have a significant positive impact on the daily lives of the people who use it.”
Alcidion’s UK general manager Kate Quirke said the deal was representative of the fact that UK hospitals aren’t de-prioritising investments in digital solutions, despite broader challenges facing the sector.
Commenting on the financials of the deal, Alcidion said it would be able to book around $5.48m of the total contract value ($9.47m) in the 2021 financial year.
That will bring its projected FY21 revenue to $20.2m — up from $18.6m in FY20 with seven months of the financial year still remaining.