Insights

Why the Alcidion (ASX:ALC) share price is shooting 38% higher today

The Alcidion Group Ltd (ASX:ALC) share price is shooting higher on Monday after announcing a major new contract win…
The post Why the Alcidion (ASX:ALC) share price is shooting 38% higher today appeared first on Motley Fool Australia. –

The Alcidion Group Ltd (ASX: ALC) share price has started the week with a bang.

In morning trade the healthcare technology company’s shares are up a massive 38% to 17.2 cents.

Why is the Alcidion share price zooming higher?

Investors have been buying the company’s shares this morning after it announced a major new contract win in the United Kingdom.

According to the release, Alcidion has signed a deal with South Tees Hospitals NHS Foundation Trust for its Miya Precision solution and the Better OPENeP electronic prescribing and medicines administration (ePMA) system.

South Tees is the largest hospital trust in Tees Valley in the United Kingdom, with over 1,000 beds and employing approximately 9,000 clinical and operational staff and providing care for more than 1.5 million people.

Management notes that this is the largest Miya Precision contract Alcidion has signed to date and estimates that the whole deal is worth $9.47 million (5.15 million pounds) over five years.

Approximately $0.96 million is to be recognised as product implementation (one-off) revenue, with the remaining $8.51 million representing recurring product (licence, maintenance, and support) revenue.

The company intends to recognise $5.48 million of the total contract value as revenue in FY 2021, subject to milestone achievement.

This means that the total revenue able to be recognised in FY 2021 now sits at $20.2 million. This compares to $18.6 million in FY 2020, with seven months of the year remaining.

What are Miya Precision and Better OPENeP?

The Miya Precision product will enable South Tees to digitise patient care processes and records.

It will also provide a trust-wide orchestration layer to integrate this new clinical data with patient data in existing trust systems using the FHIR standard for data interchange.

This means information currently held in disparate systems can be consolidated and represented in a common format for application of artificial intelligence and use in advanced clinical decision support.

The Better OPENeP solution is a next generation ePMA system and will allow the trust to digitise its prescribing and medicines administration processes.

The solutions will launch concurrently at the trust in the first phase of the technology deployment. This allows for seamless integration between electronic observations, digital patient assessments, care planning and medication processes.

Alcidion’s managing director, Kate Quirke, commented: “Clinical staff working across South Tees will be among the first in the UK to benefit from our range of healthcare technologies that have been specifically built to make the right thing to do, the easiest thing to do, even during the busiest of times.”

“It is extremely rewarding to see South Tees enter into this agreement so soon after we formally launched Miya Precision as the first smart clinical asset for the NHS. The NHS remains one of our most significant partners anywhere in the world, and I look forward to driving forward this new partnership for the benefit of staff and patients at the trust,” she added.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Alcidion (ASX:ALC) share price is shooting 38% higher today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!