en.Wedoany.com Reported - PRO MEDICUS LIMITED (ASX:PME) has renewed a five-year, $16 million contract with The Ohio State University Wexner Medical Center, extending their long-term partnership while further expanding the client's use of the Visage imaging platform.

The new agreement increases annualized contract revenue to approximately $3.2 million, representing a roughly 78% increase over the previous agreement. The growth is primarily driven by the client adding additional workflow and cardiology modules on top of its adoption of Pro Medicus' core imaging products.

Jackson Lee, an analyst at RBC Capital Markets, stated that this renewal further demonstrates that clients are not shortening contract durations due to concerns that artificial intelligence might disrupt radiology workflows. Instead, Lee noted, healthcare providers are continuing to expand their use of the Visage platform by adopting more additional products and features.

The latest agreement brings Pro Medicus' total renewal contracts for fiscal year 2026 to $141 million, enhancing visibility into the company's recurring subscription revenue base. RBC Capital Markets maintains a "Sector Perform" rating on the stock with a target price of $195 per share. The firm believes that while the Ohio State University renewal is relatively modest in terms of revenue, the agreement supports the investment thesis of high client retention rates and continued platform expansion by existing customers.

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