PKS (ASX:PKS) executes $2.3M renewal agreement with Philips

• PKS (PKS) has renewed and amended its ongoing software licence and maintenance agreement with Philips Nederland for the PKS RippleDown CDS Software
• The agreement extension is forecast to be worth in excess of €1.5 million (roughly A$2.34 million) and has been signed with a backdated effective date of September 1, 2020
• The term is extended to August 30, 2025, and includes automatic one-year renewal periods
• The Rippledown software enables any pathologist or clinician to provide real-time clinical analysis, interpretations and treatment recommendations to patients
• PKS is down 2.63 per cent, trading at 37 cents

PKS (PKS) has renewed and amended its ongoing software licence and maintenance agreement with Philips Nederland for the PKS RippleDown CDS Software.

PKS is an Australian healthcare company that offer a range of applications across the healthcare services industry. The RippleDown software enables any pathologist or clinician to provide real-time clinical analysis, interpretations and treatment recommendations to patients by aggregating and analysing all available patient information.

The agreement extension is forecast to be worth in excess of €1.5 million (roughly A$2.34 million) and has been signed with a backdated effective date set for September 1, 2020.

The agreement will see Philips offer the PKS RippleDown product as an integral part of its newly developed clinical software platform for an initial period of five years.

The commercial terms of the agreement have also been altered from a fixed annual corporate licence fee and annual end-user fee to a per-episode fee. An annual corporate licence fee continues to apply, but this will be reduced with every new installation of RippleDown until 13 installations have been reached.

Philips has now developed a new software clinical platform for Labosys LIS, making RippleDown an integral part of the software, instead of a just a stand-alone addition.

This software upgrade will be offered to all of Philips’ 26 customers at no charge and the expectation is that over 20 customers will take up this software upgrade.

This will increase the number of RippleDown installations with existing Labosys customers in the Netherlands from three to over 20 within the next three years.

Philips will also market this newly developed software to other pathology customers in the Netherlands.

As part of the agreement, PKS has also agreed to develop a microbiology module for RippleDown in conjunction with Philips. This module is already part of the RippleDown roadmap and is said to be beneficial for all PKS’ customers.

“Our partnership with Philips, being one of the world-leading healthcare companies, opens up significant opportunities which can be better achieved through Philips’ strong connections in the healthcare industry,” said PKS CEO Tim Kelsey.

“With the amended terms, the close relationship between the two companies and the strong Philip’s relationships we see a very strong, commercially successful future for the partnership.”

PKS Holdings is down 2.63 per cent, trading at 37 cents at 2:21 pm AEDT.