SUPPLEMENTARY INFORMATION REGARDING 8 DECEMBER 2021 ANNOUNCEMENT
Compumedics Limited (ASX: CMP) provides the following supplementary information in relation to its release to the Australian Securities Exchange (ASX) dated 8th December 2021 regarding the manufacture of its Somfit medical-grade wearable monitoring device at its global headquarters in Abbotsford after a decade of manufacturing most of its products overseas.
The information in the ASX Announcement dated the 8th of December 2021 is not material to the current trading performance of Compumedics. It is however a progression of one of the Companies main growth platforms, with the commencement of production of the Somfit device, which will open a potential export market of $60m over the next five years, which the Victorian State Government Release and the Company’s ASX announcement of the 8th of December did refer to and which is potentially material to the Company over time. The market size was referenced in the Ministers Media release and was subsequently referred to in Compumedics release of December 8th. Our understanding is the $60m is a third party estimate of the addressable export market over the next five years for wearable devices similar to Somfit.
It is the first such announcement to the ASX regarding the relocation of the Somfit manufacture to Australia.
No additional revenue will result from the new manufacturing arrangements in the current financial year, but the Company does expect to sell significant numbers of the Somfit over the next five years. The Company has commenced several clinical and validation studies and projects with Australia-based entities, that are an important first step in the initial commercialisation process for the Somfit device and have also enabled the initial production runs of approximately 200 Somfit devices. This is important as the Company
moves through calendar 2022 and increases the frequency and size of each production in support of the ongoing commercialisation activities for the Somfit device and the manufacturing project, which is supported by the Grant. With that said, and given the uncertainty caused by the ongoing pandemic, it would not be prudent to provide more specific financial guidance in relation to the Somfit opportunity at this time.
The financial support given by the Victorian State Government, the costs of the project and the milestones required to meet Victorian State Government funding are all Commercial-in-Confidence between the Company and the Victorian State Government.
Having noted this, it can be said the project has an expected life of up to three years under the Grant agreement (through to April 2023) and has milestones over the three years relating to the project spend and project job creation. On achievement of the milestones the Grant funds are paid. The Company has already completed the first milestone of the Grant in September of this year and has received the first Grant payment.
Compumedics does not consider the obligations of the Company under the Grant to be material to its financial performance over the project/Grant period. Further, the Company can meet its obligations in relation to the project and is funding this project as part of its ordinary operations.
About Compumedics Limited
Compumedics Limited [ASX: CMP] is a medical device company involved in the development, manufacture and commercialisation of diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications. The Company owns US based Neuroscan and Germany based DWL Elektronishe GmbH. In conjunction with these two subsidiaries, Compumedics has a broad international reach, including the Americas, Australia and Asia Pacific, Europe and the Middle East.
Executive Chairman Dr. David Burton founded Compumedics in 1987. In the same year the Company successfully designed and installed the first Australian, fully computerised sleep clinic at Epworth Hospital in Melbourne. Following this early success, Compumedics focused on the development of products that sold into the growing international sleep clinic and home monitoring markets.
Compumedics listed on the Australian Securities Exchange in 2000. Over the years, Compumedics has received numerous awards, including Australia’s Exporter of the Year, and has been recognised as a Top 100 Innovator by both German and Australian governments.
For further information please contact:
Dr David Burton
Executive Chairman, CEO
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399
Rod North, Managing Director
Bourse Communications Pty Ltd
T: +61 3 9510 8309, M: 0408 670 706