COMPUMEDICS SIGNS $3M NEURO-DIAGNOSTICS CONTRACT WITH CHINESE DISTRIBUTOR
• A major new neuro-diagnostics systems contract with long-term Chinese distributor
• Contract worth an incremental $3 million minimum in revenues over next three years
• Accelerates Company’s strength in China and further underpins Compumedics’ continued expansion into major neuro-diagnostic markets worldwide
• Red flag day marking low-cost Grael® LT system milestone, opening three-fold market
• Compumedics becomes the recognised third player globally in neuro diagnostics – a market estimated at $1.3b annually
Compumedics Limited (ASX: CMP) (“Compumedics”) – an international leader in medical devices for sleep, brain and ultrasonic blood-flow monitoring – today announced that it has secured a new three-year contract, with Bestmed, for the distribution of Compumedics’ neuro-diagnostic and monitoring systems – for the diagnosis of neurological disorders and disease – across provinces in south and central China.
The signed contract will generate a minimum of $3 million in revenue with units costing between $10,000 and $20,000.
This contract, signed with Bestmed – one of Compumedics’ seven distribution partners across China, Hong Kong and Macau – and is complementary to Compumedics’ arrangements for the distribution of its sleep and neurological monitoring range in other provinces in China, which the company has announced over the last 12 months.
The contract includes the company’s new low-cost Grael® LT system (Long Term EEG monitoring), which will open up the market in smaller hospitals and private practices.
Chairman and CEO of Compumedics, Dr David Burton, said:
“This contract will not only generate a minimum of $3 million in extra revenue for Compumedics, but also places the company well and truly in the big league of neuro-diagnostics as it will mean that Compumedics will become the third biggest player in a $1.3 billion worldwide market.
“Compumedics is now the number one premium supplier of sleep diagnostic and neurological research systems in China.”
Compumedics has spent more than a decade with its Chinese partners building a foundation for future growth in one of the world’s most challenging and highest growth markets. As a result, the company is well positioned to capture continued growth in sleep diagnostics, as well as expanding further into neurological monitoring, a relatively new and untapped market in China and other parts of Asia.