Pro-Medicus (ASX: PME) rallied 9% today on the back of the coronavirus pandemic, before coming down during the day. The World Health Organization (WHO) has recently declared the COVID-19 to be a pandemic, which stems from the alarming levels of active cases and increased death rates. While there was no news regarding Pro-Medicus, the rally could have been a result of the radiology technology used to screen the coronavirus.
Pro-Medicus offers Visage mobile application and can be downloaded for free in the Apple Store. Credit: Pro-Medicus
Pro-Medicus is an Australian company that provides a comprehensive radiology software suite, which is sold on a SAAS basis to clients. Pro-Medicus offers both mobile and desktop applications for users. The mobile application connects to the Visage imaging platform and provides clear images of the results. This is a sustainable competitive advantage since it offers flexibility and accessibility without having to be at the office all day. To ensure the security of the Mobile application, only radiologists and account managers can access the client’s profile. This minimizes risks associated with the leaking of personal data without the client’s consent.
The company has an incredible opportunity in AI, which Pro Medicus plans to use to automate a process of continual improvement. Their advantages to scale will further increase earnings quality, by providing a stream of industry-leading data from which their AI-based solution could refine data at much faster rates than competitors. Enablement of a solution that can refine and develop Pro Medicus’ radiology software faster and at a lower unit cost than competitors is set to accelerate their market domination, causing a share price re-rate.
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