Orion Health's losses grow as revenue surges

New Zealand-based e-health software provider targets the emerging "precision medicine" market.
Written by Rob O'Neill, Contributor

Orion Health lifted its revenue by 26 percent in the first half of its 2016 financial year but also saw its net loss after tax grow to NZ$27 million.

Ian McCrae
Sales totalled NZ$102 million for the half year ended 30 September but as New Zealand-based Orion is rebuilding its technology as a cloud service, recurring revenue is a key metric. That increased from 30 percent to 41 percent of total revenue over the same period of 2015.

Annualised recurring revenue grew to NZ$86 million.

Orion's net loss before tax was NZ$25 million, up from NZ$21 million in the same period last year as it continued to invest in research and development. Cash of NZ$77 million was down by NZ$18 million in the six months.

CEO Ian McCrae said the business recorded strong growth in nearly every region, managed costs and stayed on track with its strategy.

North America was a standout market with a 37 percent rise in revenues compared to the same period last year. The company secured wins with the United States Department of Defense as part of a syndicate and enjoyed new revenues from the state of Oklahoma, the province of Ontario in Canada and a large integrated clinical network in Tennessee.

McCrae said the company's research investment ensured it was poised to take advantage of the move to "precision medicine", an emerging model where patient care is customised based on complete patient information.

"Where population health management is the 'who' -- defining which patients are high risk and need particular attention, precision medicine is the 'how', enabling the determination of exact prevention and treatment plans that will specifically work for an individual," McCrae said.

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