A Look at the Alcidion Share Price: New Partnership Inked

By ,

At time of writing, the share price of Alcidion Group Limited [ASX:ALC] is up 12.2%, trading at 23 cents.

The Alcidion share price has undergone a remarkable rise over the last 12 months, with a return of 360%:

Source: tradingview.com

Today, the company announced a new partnership with Healthscope, a leading private healthcare provider.

We look at the Alcidion share price, the company’s financials and prospects going forward. We conclude that while pullbacks may occur given its remarkable rise, its future looks bright.

Interested in AI healthcare? We cover one stock making waves in the industry with its MRI-machine learning diagnostics. That’s just one of the four AI and automation stocks we cover in this free report.

Alcidion share price rises on Healthscope agreement, company on track to first profit

With the announcement released before the ASX opened today, the Alicidion share price spiked and didn’t fall below 20.5 cents for the rest of the day.

The agreement with Healthscope is for three years, ‘to implement a solution to support its data and analytics strategy,’ and will net the company $895k in revenue.

With data science playing an increasing role in healthcare, Alcidion shareholders will be hoping for more deals like the one announced today.

For reference, here’s a quick look at their financials as per their most recent results release:

  • Revenue of $16.9 million, up 33% on last year
  • Net loss of $84k
  • Cash and cash equivalents of $3.2 million

Given they have, ‘contracted revenue of $11.7M to be recognised in FY2020 and a further $19.5M to be recognised over the following five years to 2025,’ they should be poised to be profitable this financial year if they continue to win contracts and grow revenue as they have previously.

As for a capital raise, this would appear unlikely in the immediate future given their current growth and cash.

If Alcidion wants to make another acquisition though, this could change.

Alcidion in right industry, looking for further growth

Overall, with the big trend of data in healthcare, Alcidion is well placed in the right industry as hospitals look for added efficiency.

With a whopping return so far this year, you could expect some shareholders to offload some shares to take profit eventually.

But for now, Alcidion’s future looks bright. Market penetration in Europe, via the UK, as well as the lucrative US healthcare market shapes as the next major challenge for the company.


Lachlann Tierney

For Money Morning

PS: Get the names of four AI stocks on the ASX that are pushing things forward in the construction industry, healthcare and data storage.

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

Alcidion Posts Record FY21 Revenue but Shares Slide (ASX:ALC)

The Alcidion Group [ASX:ALC] reported record revenue for FY21 of $25.9 million.
The record revenue was not enough to increase the ALC shares price, with the Alcidion stock currently down 1.5%.

Alcidion Shares Soar 33% Higher on $9.47 Million Deal (ASX:ALC)

This pandemic is forcing hospitals to kit out, and smarten up. Bringing about drastic measures to ensure patients are properly taken care of. That’s why new innovations and technology are required…

Three ASX Tech Stocks to Watch in 2020

With the New Year fast approaching, we present three tech stocks to watch in 2020. The tech sector on the ASX has produced some major winners in recent years. Our goal today is to cast a wider net — and hopefully illustrate the enormous potential of the Australian tech sector from an investment perspective…

Alcidion’s Share Price Lifts on UK Dartford and Gravesham Deal

After being selected as a solution partner for Dartford and Gravesham NHS Trust in the UK — a contract valued at $2.1 million — Alcidion shares are reflecting the good news. At time of writing, Alcidion’s share price is trading at $0.055, gaining 3.77% on top of yesterday’s 12.50%.