SYDNEY, June 26, 2026, 07:03 AEST
- ASX equity market sat in pre-open at the dateline time. Trading kicks off at 09:59:45 Sydney time.
- Pro Medicus finished Thursday with a 3.58% gain at A$185.39, even as the S&P/ASX 200 lost 0.68%.
- Echo IQ is set to kick off with A$10 million in secured convertible notes. There’s an option for another A$10 million if EchoSolv HF gets FDA clearance.
- The share price jump in one day tacked on around A$669 million in market cap, which is roughly 33 times the planned maximum cash spend.
Pro Medicus Ltd (ASX:PME) went into the ASX pre-open on Friday after shares surged Thursday, pushing its market move well past the cash exposure in its latest deal with Echo IQ Ltd (ASX:EIQ).
Shares added 3.58% to A$185.39 Thursday. The S&P/ASX 200 dropped 0.68%. The A$6.40 move put about A$669 million on the table, with 104.47 million shares out. The biggest possible investment in Echo IQ is A$20 million.
The gap is important because this deal is bigger than just a funding round. Pro Medicus said it reached a binding heads of agreement with Echo IQ to push AI tools for aortic stenosis and heart failure, along with a reseller agreement. CEO Dr Sam Hupert said the aim is to “offer our Visage 7 Cardiology customers the option” to use Echo IQ’s technology. Markit Digital
Echo IQ said Pro Medicus is set to buy A$10 million in secured unlisted convertible notes. Pro Medicus can add another A$10 million if EchoSolv HF gets FDA clearance. The notes mature in 24 months with 12.5% interest, compounded daily. They convert at the lower of A$1.05 or five-day VWAP, with a floor.
Pro Medicus is spending about A$20 million here, a small figure for the company’s size. That’s 9% of its A$221.8 million in cash and investments at HY26. It’s just 0.1% of the firm’s A$19.37 billion market cap after Thursday’s close.
RBC Capital Markets’ Jackson Lee is sticking with his “sector perform” on Pro Medicus, holding the A$195 price target, according to Capital Brief. Lee said the Echo IQ deal means Pro Medicus gets an economic stake and a new product. The move adds AI diagnostics to Visage, which Lee said will deepen its cardiology lineup. Capital Brief
Pro Medicus has said before that its Visage 7 platform is AI-ready. The company’s HY26 update from February mentioned money in Elucid for Cardiac CT AI and 4DMedical for lung AI. The update also pointed to more third-party AI integrations.
Pro Medicus is still trading on that core operating base. The company posted HY26 revenue at A$124.8 million, a 28.4% rise, and underlying EBIT of A$90.7 million, up 29.7%. It said forward revenue tops A$1.08 billion over five years if main contracts are renewed.
ALS Ltd (ASX:ALQ) replaced Pro Medicus in the S&P/ASX 50 before the open on June 22, S&P Dow Jones Indices said. The change landed the same week as the Echo IQ deal. This timing puts pressure on benchmark demand.
Legal and regulatory hurdles are next. Pro Medicus said both sides have 20 business days to finish binding agreements or the deal could collapse. Echo IQ also flagged that it still needs FDA clearance and said U.S. sales will depend on reimbursement and whether customers sign on.
