Orion shares jump 9% after Leidos syndicate wins US defence contract
By Jonathan Underhill
Oct. 6 (BusinessDesk) - Orion Health shares jumped 9 percent after the listed healthcare system software developer said it was part of a group that won a US Department of Defense contract to help modernise the department's healthcare data system.
Orion said it is the "integration and interoperability partner" of the Leidos syndicate that will provide off-the-shelf electronic health record software for the department and deploy it across the military health system. The contract is part of "Defense Healthcare Management System Modernization", a project to update the US military's healthcare system, enabling patients and clinicians to capture and share health data, Orion said in a statement.
The department has chosen Orion's Rhapsody Integration Engine, which is "designed for rapid interoperability between healthcare IT systems, regardless of technology or standards", it said.
Rhapsody will provide the link between the Department of Defense's Cerner electronic health record system and the facilities that provide care to over 50 percent of military personnel, it said.
Orion’s share price rose 31 cents to $3.75 on the NZX. The stock has dropped 40 percent since listing last November. The shares sold in the company's initial public offering at $5.70 apiece. The company posted a $60.8 million loss for the year ended March 31 as it chased revenue growth and in July said it was performing in line with management expectations.
Its biggest market is in North America.