Compumedics Somfit® Key Strategic Milestone Execution – Australia
Compumedics is pleased to announce key strategic milestone execution activities regarding its novel Somfit® technology platform.
Following the signing of a Memorandum of Understanding in August last year, Compumedics is pleased to announce that it has now signed an initial 5-year supply agreement with the leading provider of Home Sleep Testing (HST) services in Australia. The Supply Agreement is to supply the Somfit Pro, which includes recurring software as a service (SaaS) fees and consumable supplies for their home sleep testing business. The initial first year commitment is approximately $1.0m, which includes approximately $0.5m of recurring SaaS revenues. It is anticipated that SaaS revenues will grow to approximately $1.0m annually over the agreement period. The Supply Agreement is for 100% of their HST services business and represents close to 20% of the HST testing market in Australia.
This supply agreement is a national agreement for their market segment, and we continue to progress a number of other Somfit agreements across Australia as part of the go-to market strategy for point of care testing highlighted in the September 2022 announcement to the ASX. The go-to market strategy has been developed around an initial focus in Australia and is currently being executed, targeting three main areas:
• The existing Obstructive Sleep Apnea (OSA) Home Sleep Testing (HST) market
• The primary care market for sleep screening and OSA diagnosis and
• Supporting the diagnosis of Insomnia and circadian rhythm disorders.
This Supply Agreement with this leading HST service provider addresses the existing OSA HST market in Australia.
Compumedics anticipates further announcements as it concludes state-based distribution arrangements across Australia and then as it enters the much larger US market.