Alcidion (ASX:ALC) Surges 15% After Winning Preferred Supplier Role for A$35M NHS Contract

Alcidion Secures Preferred Supplier Status for Major UK EPR System Worth Over A$35M

Alcidion shares rose 15% today following a strong commercial announcement that the company has been selected as the preferred supplier for a new electronic patient record system at University Hospitals Sussex. While the contract has not yet been formally signed, Alcidion has won the competitive tender process and is now negotiating final contract terms, which materially de-risks execution from here.

The opportunity outlined in the announcement is meaningful. Management indicated the total contract value could exceed A$35 million over a seven-year commitment period, implying a minimum of around A$5 million in annual revenue. If executed, this would represent one of the largest single contract wins in Alcidion’s history. The deployment would support approximately two million patients across seven hospitals and around 20,000 staff, clearly demonstrating the enterprise-scale capability of the Alcidion platform.

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Prescription for Growth

Miya Precision is a FHIR events platform designed to support both clinical and operational use cases within healthcare environments. Rather than replacing existing hospital systems, it enhances current IT investments by connecting disparate data sources and translating them into meaningful, real-time insights that improve clinical workflows.

From a practical standpoint, the platform gives clinicians a single, intuitive view of critical patient information, helping them identify issues early and act with confidence. By applying artificial intelligence to clinical decision support, Miya Precision highlights what matters most and clearly outlines the actions required. The end result is more informed decision-making, improved efficiency across care teams, and better outcomes for patients, which is exactly the kind of value hospitals look for when scaling digital health solutions across large networks.

We think this could be a good buy

With FY25 revenue reaching approximately A$40 million, supported by 84% recurring revenue and high gross margins, the business is starting to show the characteristics of a more predictable and scalable software model. Importantly, the company now appears to be moving toward consistent quarterly profitability, which marks a meaningful inflection point in the investment case.

From our perspective, these fundamentals support a constructive buy view on the stock at current levels. The next key catalysts investors will be watching for are formal contract validation and improved revenue visibility.

If these are delivered, this partnership has the potential to drive further commercial momentum and reinforce confidence in the sustainability of earnings as the business continues to scale.

This is not financial advice and reflects our personal opinion only, shared to help retail investors think more clearly about the opportunity and make better informed investment judgments.