KEY HIGHLIGHTS

  • $35M, 7-year contract with UHSussex for Miya Precision EPR, with option to extend to 10 years for a potential TCV of $49M.
  • Alcidion expects to recognise approximately $8.5M of Revenue in FY26 from the contract, primarily as an upfront licence fee.
  • First deployment of Alcidion's virtual care module to a UK customer, serving approximately one million people across Sussex.

 

Alcidion Group Limited (ASX:ALC) announced on Monday that it has signed a new contract with University Hospitals Sussex NHS Foundation Trust (UHSussex) to deploy its flagship Miya Precision platform as UHSussex's new Electronic Patient Record (EPR) system. The stock rose 1.82% to A$0.11 in response, a measured reaction that nonetheless reflects steady investor confidence in a company that is systematically building a substantial footprint within the NHS digital transformation program. The contract has a total value of approximately A$35 million over an initial seven-year period, with a contractual right to extend to ten years, which would take the potential total contract value to approximately A$49 million.

The contract is Alcidion's third EPR platform win in the United Kingdom, and it comes in the context of a broader, government-backed NHS push to digitise patient records and clinical workflows across all acute trusts. UHSussex is a large and complex organisation: it operates seven hospitals, hosts more than 1.5 million outpatient appointments, accident and emergency visits, and surgical cases annually, and employs nearly 20,000 staff, serving a population of approximately one million people across Sussex. The scope and scale of the deployment make it one of the more significant EPR contracts that Alcidion has secured.

Revenue Recognition and Near-Term Financial Impact

The revenue profile of the contract is front-loaded relative to the seven-year term. Alcidion expects to recognise approximately A$8.5 million of revenue in the current financial year (FY26), with the majority derived from an upfront licence fee for the use of the Miya Precision platform across the full contract duration. This approach to revenue recognition — taking a substantial upfront payment in exchange for platform access rights — is characteristic of how Alcidion structures its larger EPR deals and means that the near-term revenue contribution will be disproportionately large relative to what might be expected from an annualised straight-line view of the contract value.

The company has also disclosed an upfront payment to a third party of approximately A$2 million for a medications management module that will form part of the deployment. This one-time cost will be recognised in the current year and will partially offset the FY26 revenue benefit. Implementation is expected to begin immediately and will extend for approximately 18 months, with a phase one go-live target of June 2027. The extended implementation period reflects the breadth and complexity of the platform deployment across seven hospitals.

What Makes This Contract Strategically Important

Beyond the headline financials, the UHSussex contract carries several strategic characteristics that are worth examining. First, it marks the first time Alcidion will deploy its virtual care module to a United Kingdom customer. Virtual care — which supports remote patient monitoring and telehealth consultations for patients who might otherwise require hospital admission — is an increasingly high-priority capability for NHS trusts under pressure to manage capacity and reduce inpatient bed days. This first UK deployment creates a reference site for the module, which can be used to drive further adoption across Alcidion's growing NHS customer base.

Second, the deployment builds on an existing relationship. Alcidion's Miya Observations and Assessments product, marketed as Patientrack, is already live at UHSussex, meaning the new EPR contract represents an expansion and deepening of an established trust relationship rather than a cold start. The contract also includes Options to add further modules over time — including Miya Emergency and a Patient Administration System — which would incrementally add to the total contract value. This modular expansion path is central to Alcidion's commercial model and creates a natural upgrade cycle within each customer relationship.

UK Strategy and Broader Portfolio

Alcidion now services more than 400 hospitals and 87 healthcare organisations globally, with its UK presence having been built progressively through a combination of organic growth and targeted acquisitions since listing on the ASX in 2016. The United Kingdom represents the company's primary growth market, and the NHS's ongoing digital transformation program — supported by central government funding mandates for trusts to achieve EPR deployments — provides a structural Demand tailwind that is expected to persist through the latter half of this decade. With three EPR platform contracts now secured in the UK, Alcidion is establishing the kind of reference portfolio that is typically decisive in competitive tender processes, where prior NHS deployment experience carries significant weight.