Why we're excited about emerging small cap Alcidion


Alcidion essentially provides a suite of software offerings to arm healthcare organisations with real-time data and artificial intelligence to improve efficiency and increase levels of patient care. This hybrid healthcare and technology business currently services 63 healthcare organisations with more than 300 hospitals throughout the UK, Australia and New Zealand.

To date, Alcidion products have 68,000 active users, 50,000 beds using their technology, 1 billion patient observations recorded, and approximately 16 million alerts generated to highlight issues such as patient deterioration.

Alcidion consists of three overarching brands, each with its own modules, all sharing the same general aim of increasing hospital efficiency and improving levels of patient care.

Alcidion shares asx

MIYA Precision

This platform facilitates multiple clinical and operational applications, with the aim of not only providing new applications but also enhancing existing IT and transforming inputs from multiple systems into consolidated, meaningful information. In addition to the platform itself, there are 15 available modules under the MIYA umbrella focusing on areas such as bed allocation, improved and simplified reporting, emergency department management and vital sign observations with automatic risk scores and notifications. Customers include ACT Health, NSW Health, NT Health, South Tees NHS Trust.


An advanced smartphone and web-based system focusing on hospital communication and task management for both clinical and non-clinical users. On the clinical side, the platform enables individual and group chat, image sharing, handover, and task management, while the non-clinical module covers areas such as food, cleaning, security, porters, and orderlies. Customers include ACT Health, Monash Health, Townsville Health, South Tees NHS and Waitemata District Health Board in NZ.


This is a solution that enables the capture of patient data at the bedside which can be entered directly via a tablet or integrated from patient monitoring. This data is then automatically evaluated to give an Early Warning Score and depending on the protocols of that hospital alerts can be issued to management. Current clients of Patientrack include ACT Health as well as a number of NHS hospitals in the UK.

Delivering revenue 

Revenue for the half grew 36%, coming in at $11.1 million against the prior corresponding period. We are also encouraged by the gross profit margin which increased slightly to arrive at an impressive 88.1%. The clear highlight in recent times was a milestone $11.3 million five-year contract with South Tees NHS trust in the UK which will see MIYA Precision rolled out across 1000 beds. This is the second NHS trust to install MIYA but given there are approximately 223 NHS trusts, the runway for growth is extremely large in this area.

Growing global footprint

While it is very much early days, we are seeing traction with both pilot programs, contract extensions, and new longer-term contracts being signed in Australia, New Zealand and the UK. As the current customer base continues to grow, we expect to see the benefits of the network effect flow for Alcidion, in that it is far easier to sell into other large health organisations when you have a strong base of existing customers. Added to this, the relatively small size of the business means those new contract wins can have a more material impact on the share price as opposed to larger, more established businesses.

Only this month the company announced the acquisition of ExtraMed for A$9.6 million on a cash-free/debt-free basis, with the entire consideration paid upfront, in cash. This represents about a 3.6x FY22 forecast revenue and is forecast to contribute FY22 revenue of $2.7 million, as well as being EBITDA accretive of $500,000 and positive cash flow.

With the high margins and scalability exhibited by software, we see Alcidion as a consistently growing business with a base of large clients, now in the position to benefit strongly from the shift to digital as hospitals globally look to become more efficient.

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Michael Wayne is the managing director of Medallion Financial Group. With considerable experience in financial markets, Michael provides advice to a range of clients in both domestic and international equities, exchange trade funds (ETFs), managed funds and corporate deal flow.