Alcidion’s Digital Health Leap

Alcidion Group (ALC) has announced a significant contract extension with South Tees Hospital Foundation Trust, worth $23 million, shares Kate Quirke. Excitingly, the contract reinforces Alcidion’s commitment to delivering modern healthcare solutions to the National Health Service (NHS). South Tees, an early foundational customer of Alcidion, has subscribed to a promising additional 10+5 year contract, bolstering Alcidion’s recurring revenue outlook while potentially adding roughly $9.5 million for possible future modules. If the contract spans a total of 15 years, it could yield an approximately $54 million return.

Kate further shares that Alcidion is dedicated to the digitisation of data in healthcare. Their mission involves transitioning from tangible records to a digital environment, paving the way for artificial intelligence applications and algorithm-based decision-making. Alcidion aims to address the healthcare sector’s difficulties, from nurse shortages and an aging population to the burdensome administration resulting from paper-based processes. As a central solution, Kate explains that Alcidion offers a distinct modular approach via their Miya Precision platform.

Regarding growth, Kate states, the company has experienced a balanced combination of both acquisition-based expansion and organic growth. Although Alcidion has bolstered its market share and capabilities via select acquisitions, they’re primarily focusing on organic growth and new market entries. They find the Canadian market and Southeast Asia particularly attractive. While noting recent changes in the share price, Kate concludes they are eager to enhance profitability and maintain their cash-flow positive position, which they have consistently held for the past three years

Watch the latest update of Alcidion in the news by ausbiz here.