Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Orion Health inks technology deal with Boots UK

Orion Health inks technology deal with Boots UK - not enough to reverse sliding share price

By Fiona Rotherham

Sept. 30 (BusinessDesk) - Orion Health, the listed healthcare system software developer, announced a deal to roll out its technology to 2,400 Boots community pharmacy stores across the UK and Ireland.

The value of the contract has not been disclosed but chief executive Ian McRae said it was a mid-sized deal for Orion and potentially reaches 750,000 Boots customers. The announcement wasn't enough to reverse a 48 percent decline in Orion's stock since its listing last November, and the shares fell 2.7 percent to $3.25 today.

It is the first major deal Orion has signed in the pharmacy sector and McCrae said it was part of a trend towards care coordination extending beyond primary health givers such as hospitals toward pharmacies, big pharma companies, medical device firms, insurance companies, and co-ordinated healthcare providers. He said the same software it provided could be used across seven or eight sectors.

The Boots contract follows a successful pilot programme between the two companies involving a smaller number of stores.

McCrae said the company had several other big contracts due out before Christmas across other sectors, although he declined to name them.

Orion reported a $60.8 million loss for the year ended March 31, in line with its strategy to increase revenue before becoming profitable. Annual revenue rose 7 percent to $164.1 million. In a quarterly update in July, the company said it remained in growth mode and expected to have negative cash flow in the short-to-medium term as it grows capability.

Orion’s share price has been on a downward path since raising $125 million in an initial public offering and listing on the NZX last November. Investors got spooked when it failed to achieve revenue targets in the December quarter and the shares are now well down on its $5.70 IPO price.

McCrae, who remains the majority shareholder, said “I wish I knew” when asked what was driving the share price trend. “Essentially we’ve achieved our forecasts. Analysts are forecasting us to grow 30 percent and if that was wildly wrong, we’d have to correct it,” he said.

Forsyth Barr analyst Blair Galpin said two factors were weighing on its share price. The first was an overall conservative turn in investor sentiment in the past six weeks away from growth stocks that aren’t generating profits and towards more certain dividend yields. Another factor was a lag in Orion announcing some big contracts in the US that have been slow to materialise.

Galpin said a lot of the price movement in Orion’s shares had come off quite small volumes being traded.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>