EchoIQ Ltd's stock surged 39.52% during intraday trading on Thursday, following the announcement of a significant investment and commercial partnership with Pro Medicus Ltd.

The sharp price movement comes after Pro Medicus (ASX:PME) disclosed it will provide an investment of up to AU$20 million to Echo IQ (ASX:EIQ) and become a reseller of the EchoSolv product suite across the United States under a proposed commercial partnership. According to a filing with the Australian bourse, Pro Medicus will initially invest AU$10 million and will have an option to invest an additional AU$10 million upon Echo IQ receiving US Food and Drug Administration clearance for its EchoSolv HF software.

Both the initial and subsequent investment will be made through a subscription for secured convertible notes. Echo IQ noted that the US FDA submission for EchoSolv HF "remains on track for an expected outcome in the near term," adding further positive sentiment to the partnership announcement that has driven investor enthusiasm for the healthcare AI company.