After years of speculation that it might, the Electronic Medical Records space finally seems to be gaining an irreversible foothold.
According to Maryland-based market research firm Kalorama information, the global EMR market reached US$17.9B in 2011. Kalorama expects that number to grow to $20.9B in 2012 and eventually $35.4B in 2016, representing a 5-year CAGR of 14.6%.
Industrial Alliance Technology and Special Situations Analyst analyst Steve Li says Canada has an emerging player that could make a dent in the North American EMR market.
Li says Nightingale Informatix (TSXV:NGH) is positioned to benefit not only from a government spending environment, but has developed a next-generation platform called neXia, a self-serve model with a more intuitive interface he believes will improve the adoption rate from SMB clients while reducing its cost of acquisition of subscribers. In a research update to clients today, Li reiterated his Strong Buy rating and twelve-month target of $.75 cents on Nightingale Informatix.
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Formed in 2002, Nightingale has become one of the fastest growing health care IT service and software and electronic medical records companies in North America. At the end of Q1/13, the company had more than 12,500 practitioners in its customer base, up more than 5000 from a year prior. Li says the adoption rate of EMR is quickly trending upwards, but at a penetration rate of 37% in Canada and 46% in the United States, Nightingale still has a lot of runway for growth.
Li believes Nightingale’s revenue will grow from the $18.1-million topline it posted in 2012 to more than $26-million in 2014.
Shares of Nightingale Informatix closed today even at $.25 cents.