Latest news with #SamHupert
News.com.au
6 days ago
- Business
- News.com.au
Health Check: Pro Medicus banks the profits as customers go the ‘full stack'
Pro Medicus shares surge up to 7% on record revenue and earnings Tetratherix pockets $3.3 million, while Rhythm girds for a raising CEO oration inspires Starpharma share run The $32 billion market cap ProMedicus (ASX:PME) has drawn the chapter on what co-founder and CEO Dr Sam Hupert dubs 'the most successful year in the company's history by any measure'. The US-focused radiology imaging house today posted revenue of $213 million for the full year to June 30 2025, up 32%. Net earnings surged 39%, to $115 million. While the numbers were pretty much as expected, the shares surged up to 7% on the prospect of further revenue gains from newly-written contracts. The company is also expanding into areas such as cardiology and pathology – the latter of which could be two-thirds the size of the radiology market. "But it's early days." Hupert describes a 'record year of new contract wins, contract renewals and sales of additional modules'. Revenue rose in the three key jurisdictions of the US, Germany and Australia, but North America led the way with a 36% increase. The company derives about 90% of its revenue from the US. During the year, Pro Medicus won $520 million of new contracts. Yep, that's a record. These included a monster $330 million deal with Trinity Health, one of the biggest not-for-profit networks in the US. The company also signed two key renewals, totalling $130 million. Hupert says more customers are going the 'full stack', which means they are availing of the company's image viewing, archiving and workflow tools. Only the beginning? He adds that many of the recently signed contacts will come on stream 'in the next year and beyond', which means 98% of this revenue is yet to be recognised. He cites forward contracted revenue for the next five years at $948 million, up from $624 million a year ago. Despite the growth, Pro Medicus still accounts for only 10% of the US total addressable market. The company still trades on an extravagant price-earnings multiple, which implies that this 10% will become a much bigger number in the near future. 'We don't have a fixed target in mind, our aim is to get as big a percentage market share as possible,' Hupert says. 'Importantly, we do not see any technical or capacity-related reason why we will not continue to increase our market share materially from here.' Hupert says the company's recent $10 million loan facility to lung imager 4D Medical (ASX:4DX) related to the companies AI capabilities. There's the prospect of adding one or morr 4D products to the Pro Medicus stable. "But I wouldn't read more into it than that." Broker RBC says while the result was broadly in line with consensus, the company pleased with its free cash flow generation and upbeat outlook on contracts. RBC has a 'hold' rating on the stock with a 'price target' of $350. Starpharma shares take a run Starpharma (ASX:SPL) CEO Cheryl Maley's prezzo to Bioshares annual summit in Hobart last week appears to have been enough to spark a 50% share run. The contents weren't new, but Maley did outline how management had tweaked the company's strategy over the last year. Maley started in January 2024. Otherwise, Starpharma's June quarterly report showed customer receipts of $2 million, 51% higher than the March quarter. Net cash outflows were $2 million. Starpharma's reason for being is its dendrimer enhanced product (DEP) platform, which has produced the commercialised bacterial vaginosis treatment Vivagel and the germ-busting nasal spray Viraleze. Before you ask, dendrimers are nanoscale polymers aimed at improving drug efficacy and reducing side effects (such as bone marrow toxicity and hair loss). The company has oncology programs that combine the dendrimer with three existing drugs. They are irinotecan (colorectal cancer), cabazitaxel (prostate cancer and others). Management is attempting to outlicense these assets. Maley says despite considerable interest 'the licensing process has taken longer than anticipated.' She attributes this to factors including "the evolving oncology landscape shifting towards targeted treatment options and the current geo-political environment, which has impacted the biotechnology industry at large". Starpharma ended the quarter with cash of $15.5 million – enough funding for close to two years – with an expected $3.5 million R&D tax rebate yet to come. Starpharma shares today had a well-earned rest, falling around 10%. Rhythm limbers up for raising Rhythm Biosciences (ASX:RHY) shares are on trading halt pending a capital raising announcement, on or before next Monday. It's not a bad time for the company to tap the market, given its shares have gained 75% over the last month. Rhythm is developing Colostat, a blood-based cancer assay which could replace the commonly used 'poo' tests. The company also owns Genetype, a genetic risk assessment testing platform combining clinical, family history and genetic data. Rhythm bought this asset from the administrators of Genetic Technologies. Tetratherix gets a grant Of course, the best form of funding is the free variety and the recently listed Tetratherix (ASX:TTX) has come up trumps in this regard. The wound-care house has been awarded $3.3 million of non-dilutive funding, under the federal Industry Growth Program grant. Tetratherix is commercialising products based on its polymer biomaterials, which offer claimed benefits such as increased flexibility and bioresorbability. The grant will partly fund a $7.4 million project to take its Tetramatrix platform global, including expanding its production facility near Sydney Airport. The funding spans the current financial year and 2026-27. Tetratherix shares have gained a sprightly 40% since listing on June 30, the only local life sciences IPOs year to date. But if you think that's a drought, there been no US biotech IPO for six months. The last one was diseases specialist Aardvark Therapeutics, which listed on the Nasdaq in mid-February.
Bloomberg
12-06-2025
- Business
- Bloomberg
Former Penny Stock's 54,000% Rise Makes Two Australians Billionaires
In 2009, as the global financial crisis rumbled, a little-known Australian health-tech firm snapped up a struggling imaging company for $3.5 million. Today, that bet has turned Pro Medicus Ltd. into a A$29 billion ($19 billion) firm — its shares soaring 54,000% over the past 15 years to outpace even artificial intelligence giant Nvidia Corp. The rally in the Melbourne-headquartered provider of cloud-based cancer diagnostic software has also vaulted its founders — Sam Hupert and Anthony Hall — into the ranks of the world's richest. Each is now worth about $4.7 billion, according to the Bloomberg Billionaires Index, which is valuing them for the first time.
Yahoo
05-02-2025
- Business
- Yahoo
Despite recent sales, Pro Medicus Limited (ASX:PME) insiders remain the largest stockholders with 49% ownership
Insiders appear to have a vested interest in Pro Medicus' growth, as seen by their sizeable ownership The top 4 shareholders own 51% of the company Insiders have been selling lately If you want to know who really controls Pro Medicus Limited (ASX:PME), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 49% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Insiders are at the top of the company's shareholdings despite selling some shares recently. As a result, they were also the biggest winners as market cap hit AU$30b last week. Let's take a closer look to see what the different types of shareholders can tell us about Pro Medicus. View our latest analysis for Pro Medicus Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Pro Medicus. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Pro Medicus' earnings history below. Of course, the future is what really matters. Pro Medicus is not owned by hedge funds. With a 23% stake, CEO Sam Hupert is the largest shareholder. In comparison, the second and third largest shareholders hold about 23% and 2.8% of the stock. Interestingly, the second-largest shareholder, Anthony Hall is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders. To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. It seems insiders own a significant proportion of Pro Medicus Limited. It has a market capitalization of just AU$30b, and insiders have AU$15b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling. The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Pro Medicus better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Pro Medicus (of which 1 can't be ignored!) you should know about. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
