VOL. XCIV, NO. 247

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Friday, January 2, 2026

Pro Medicus Limited

PME · ASX

Market cap (USD)$15.5B
SectorHealthcare
Industry
CountryAU
Data as of
Moat score
80/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Pro Medicus is an Australian healthcare informatics company focused on medical imaging software, with Visage 7 (enterprise imaging/PACS/CloudPACS) generating the vast majority of FY2025 external sales and a smaller Australian Visage RIS business. Visage 7's moat is driven by workflow/data lock-in from enterprise deployments and archive migrations, reinforced by a differentiated streaming/GPU architecture positioned on speed and scalability and by a modular full stack suite (viewer, archive, workflow) that can displace third-party point solutions. The company has been landing multi-year contracts with large North American health systems and monetizes usage via a largely transaction-based model. Key erosion risks include incumbent vendor responses (bundling and services), interoperability/regulatory shifts that reduce platform stickiness, and narrowing performance gaps as competitors modernize.

Primary segment

Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)

Market structure

Oligopoly

Market share

55% (implied)

HHI:

Coverage

2 segments · 6 tags

Updated 2026-01-02

Segments

Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)

Enterprise imaging / PACS and related modules for hospitals and integrated delivery networks (IDNs)

Revenue

92.5%

Structure

Oligopoly

Pricing

strong

Share

55% (implied)

Peers

GEHCPHIA.ASSECT-B.STAGFB.BR+1

Visage RIS (Radiology Information System) and Promedicus.net

Radiology information systems (RIS) / radiology practice management software

Revenue

7.5%

Structure

Oligopoly

Pricing

moderate

Share

Peers

ORCL

Moat Claims

Visage 7 Enterprise Imaging Platform (PACS / CloudPACS)

Enterprise imaging / PACS and related modules for hospitals and integrated delivery networks (IDNs)

Revenue share is computed from FY2025 "Sales to external customers" by product line in the annual report (PACS A$197.019m of A$212.905m external sales).

Oligopoly

Data Workflow Lockin

Demand

Strength

Durability

Confidence

Evidence

Enterprise imaging deployments require archive migration and deep EHR/clinical workflow integration, increasing switching costs once live at scale.

Erosion risks

  • Interoperability mandates and data portability reducing switching friction
  • Growth of vendor-neutral archives/viewers that decouple the stack
  • Cloud standardization making infrastructure less sticky

Leading indicators

  • Contract renewals and expansion wins (add-on modules)
  • Transaction-based revenue growth from existing customers
  • Competitive RFP win/loss rate in large IDNs

Counterarguments

  • Large incumbents can bundle imaging IT with broader enterprise deals and services
  • Cloud-first architectures may reduce long-run switching costs versus on-premise PACS

Keystone Component

Supply

Strength

Durability

Confidence

Evidence

Differentiation is tied to Visage 7's streaming/GPU-based architecture (speed, scalability, remote reading), which the company positions versus legacy "compress and send" approaches.

Erosion risks

  • Competitors modernizing to cloud-native streaming and GPU architectures
  • Network bandwidth and hardware advances narrowing perceived speed advantage
  • Standards-based web viewers reducing differentiation

Leading indicators

  • Clinician productivity metrics and customer testimonials
  • Win rate in tenders citing performance/functionality
  • R&D cadence (new modules, AI workflow integration)

Counterarguments

  • Speed/function advantages can be competed away as incumbents refresh platforms
  • Some buyers optimize for lowest total cost or vendor consolidation, not best-in-class speed

Operational Excellence

Supply

Strength

Durability

Confidence

Evidence

The company emphasizes rapid cloud implementations that reduce disruption and time-to-value versus alternatives.

Erosion risks

  • Scaling professional services for larger/more complex rollouts
  • Incumbents improving implementation tooling/partners
  • Talent constraints in specialized imaging IT deployment

Leading indicators

  • Average time-to-go-live and implementation backlog
  • Number of annual go-lives (cloud vs on-prem)
  • Post-implementation satisfaction and renewals

Counterarguments

  • Incumbents with larger services organizations may match speed at scale
  • Fast rollouts may be less repeatable in the most complex multi-hospital migrations

Suite Bundling

Demand

Strength

Durability

Confidence

Evidence

The platform is sold as a modular full stack (viewer, archive, workflow), increasing share-of-wallet and reducing reliance on third-party point solutions.

Erosion risks

  • Customers preferring best-of-breed point solutions
  • Procurement mandates for modular, interoperable components
  • Pricing pressure if buyers unbundle at renewal

Leading indicators

  • Attach rate of archive/workflow/cardiology modules
  • Average contract value and module mix
  • Share of customers expanding beyond core viewer

Counterarguments

  • Vendor-neutral strategies can limit bundling leverage
  • Incumbents may bundle PACS with imaging equipment/service contracts

Visage RIS (Radiology Information System) and Promedicus.net

Radiology information systems (RIS) / radiology practice management software

Revenue share is computed from FY2025 "Sales to external customers" by product line in the annual report (RIS A$15.886m of A$212.905m external sales). This segment also includes Promedicus.net products per the annual report product description.

Oligopoly

Switching Costs General

Demand

Strength

Durability

Confidence

Evidence

RIS is embedded in scheduling, billing, and clinical workflow; Pro Medicus describes its RIS as a clear market leader in Australia and cites renewals/transaction volumes from large customers.

Erosion risks

  • Hospital EHR vendors expanding RIS-like modules and integrations
  • New cloud-native RIS entrants and price competition
  • Concentration risk if a small number of large customers drive volumes

Leading indicators

  • Renewal outcomes and total contract value changes in Australia
  • Transaction volumes from major customers
  • Competitive wins/losses in new radiology group tenders

Counterarguments

  • Leadership claims may not translate into durable pricing power in a small market
  • Customers may switch if integrated hospital platforms reduce workflow friction

Long Term Contracts

Demand

Strength

Durability

Confidence

Evidence

Management cites renewals and contract rollouts as drivers of Australian revenue, indicating recurring contract structures.

Erosion risks

  • Renewal renegotiations and price pressure
  • Service level or product quality issues leading to churn
  • Procurement consolidation among radiology groups

Leading indicators

  • Renewal cadence and contract values
  • Support ticket volumes and customer satisfaction
  • Product roadmap delivery for RIS features

Counterarguments

  • Contracts provide visibility but do not prevent competitive displacement at renewal
  • Large customers can exert bargaining power and demand concessions

Evidence

other
PME signs AUD $330M, 10-year contract with Trinity Health (company announcement)

Visage will complete the migration from Trinity Health's legacy PACS system comprising nine vendors...

Multi-vendor PACS consolidation and archive migration imply high workflow/data switching costs.

sec_filing
Pro Medicus Limited Annual Report 2025 (ASX release)

...clients ... implementing additional offerings... thereby eliminating the need for third-party stand-alone solutions.

Module expansion suggests increasing workflow/tooling dependence within the platform over time.

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Pro Medicus Limited Annual Report 2025 - Competitive advantage

Visage-7's ability to stream images (rather than compress and send) ... faster for clinicians...

Direct claim of architectural performance advantage vs competitors.

sec_filing
Pro Medicus Limited Annual Report 2025 - External environment (image data growth)

Visage-7 technology... streams data ... provides a significant advantage over competitors.

Links advantage to rising image sizes, reinforcing why performance/scalability matters.

sec_filing
Pro Medicus Limited Annual Report 2025 - CEO and Chairman's letter (implementation speed)

...implementations in less than a third of the time ... Baylor, Scott and White ... completed in three months...

Implementation speed can be a decision factor in enterprise RFPs and lowers disruption/time-to-value.

Showing 5 of 11 sources.

Risks & Indicators

Erosion risks

  • Interoperability mandates and data portability reducing switching friction
  • Growth of vendor-neutral archives/viewers that decouple the stack
  • Cloud standardization making infrastructure less sticky
  • Competitors modernizing to cloud-native streaming and GPU architectures
  • Network bandwidth and hardware advances narrowing perceived speed advantage
  • Standards-based web viewers reducing differentiation

Leading indicators

  • Contract renewals and expansion wins (add-on modules)
  • Transaction-based revenue growth from existing customers
  • Competitive RFP win/loss rate in large IDNs
  • Clinician productivity metrics and customer testimonials
  • Win rate in tenders citing performance/functionality
  • R&D cadence (new modules, AI workflow integration)
Created 2026-01-02
Updated 2026-01-02

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

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