Craneware plc (LON:CRW) (CRW.L) has risen over 6% today after it updated the stock market with news of contract wins. The company has won two significant new contracts with hospital providers in the US. Both hospital providers are new customers to the company.
The first contract is with a major blue-chip healthcare provider. Craneware’s Value Cycle products are set to be used across its chain of 20 hospitals, with the contract expected to generate revenue of around $5 million over its initial multi-year term.
The second contract win is with an innovative surgical hospital. This will see the company’s products used as part of its strategic growth plans. The multi-year contract is expected to deliver around $3.5 million over its initial term.
The contract wins appear to have been welcomed by investors. In my view, they show that the company’s strong momentum has continued into the second half of the year. I wouldn’t be surprised if there are further gains in the company’s stock price in the near term, as investors digest the news.
In the last year the Craneware share price has risen 33%. That’s a better performance than other healthcare-related stocks such as Shire PLC (LON:SHP) (SHP.L), Smith & Nephew plc (LON:SN) (SN.L) and Hikma Pharmaceuticals Plc (LON:HIK) (HIK.L). Shire is down 30%, Smith & Nephew is up 5% and Hikma has dropped 55% during the same one year time period.
In my view, Craneware has investment appeal for the long run. Today’s announcement shows that the stock appears to be moving in the right direction, with it having a strategy that is leading to operational success.
I’m optimistic about the outlook for the wider healthcare industry in the long run and feel it could offer sustainable growth potential. Therefore, I’m upbeat about further gains being ahead for the company after today’s update.