Mach7 shares go Mach 1 after $15m Hong Kong hospital win
Health & Biotech
A British Airways Concorde takes off from London in 2001 not long before the planes were retired. Pic: Getty
MedTech play Mach7 Technologies went flying this morning after winning a $15 million contract in Hong Kong.
The stock (ASX:M7T) jumped 35 per cent t0 23c by 11am AEST.
The stock has traded between 16c and 38c over the past year — though it reached as high as $1.15 back in 2015 after joining the ASX via a merger with a holographic software maker.
Under today’s deal, Hong Kong’s public hospital manager has chosen Mach7’s imaging software for a five-year contract worth HK$81 million ($14.5 million).
That’s more than double the $8.6 million revenue Mach7 reported last year — which was down from $10.3 million in 2017.
Mach7 narrowed its loss to $4.9 million last year — compared to a loss of $17.2 million in 2017. The company’s latest quarterly shows cashburn of $682,000 for the September quarter, leaving $1.8 million in the kitty.
Under the Hong Kong deal, Mach7’s Enterprise Imaging Solution will be rolled out in hospitals across the region.
The software would allow doctors to access clinical data from any location across Hong Kong “with a consistent and informed user experience for optimal patient care”, the software maker said.
The system would help reduce repeat examinations, radiation exposure and would saved time and money.
“We are very excited about this new strategic partnership with Hong Kong’s finest health care system,” said Mach7 founder Ravi Krishnan.
“It demonstrates the power of the Mach7 solutions to improve operational and clinical outcomes across an entire healthcare system, delivering a highly efficient and reliable platform for Hong Kong’s demanding imaging requirements.”
Mach7 was born out of a 2015 merger with holographic software maker 3D Medical.