Orion Health shares soar on new UK contracts

Orion chief executive Ian McCrae. Photo / NZHerald

Orion Health shares extended their advance after the health systems software developer signed up a pair of new clients in the UK.

The shares rose 5.7 percent to $4.25, the highest level since June 2015, adding to a 26 percent gain so far this year.

The Auckland-based company will roll out an electronic medical record and patient engagement tool for two London hospitals which care for 1 million people, and provide an integrated health and social care record for NHS Fife in east Scotland, which services a population of 360,000.

Chief executive Ian McCrae said in a statement that the deals show Orion Health's growing presence in the Europe, Middle East, Africa region, beating out other providers for the London hospitals and building out its presence in Scotland.

"This contract extends Orion Health's reach to five mainland health boards and one specialist health board and increases the population covered by Orion Health solutions to over 50 percent of Scotland," McCrae said.

Orion Health has been unveiling a series of new contracts in the US and Australia over the past few months as it looks to build out its customer base in a bid to expand its global operations, forgoing short-term profit in doing so.

Last month McCrae said he will outline Orion Health's timeframe to return to profitability. The software developer has cut staff numbers in the US as it eked out greater efficiency in installing its products.