$1M Somfit Sale to World Leading Pharmaceutical Contract Research Organisation in USA.
Compumedics wins new Somfit sale to pharmaceutical clinical trial market strengthening USA market expansion strategy.
BUSINESS Update
- Compumedics wins new Somfit sale to one of the world’s leading pharmaceutical Contract Research Organisations (CRO’s). The sale is approximately $1m (USD0.6m)
- The sale confirms Compumedics stated strategy that Somfit is well suited in adjacent markets (to home sleep testing) because of its ability to track brain (EEG) signals directly, providing true sleep architecture
- The sale further underpins the ongoing overall strength in our USA based business with sales orders taken so far this year of USD12.0m compared to USD5.2m for the same time last year, representing growth of 130%
- Company FY25 guidance – The Company continues to expect sales orders taken to be more than $60m, with revenues to now be between $50m and $55m and EBITDA around $3m, as the Company absorbs the growth in the business.
Compumedics Limited (ASX: CMP) a global medical device Company that develops, manufactures and commercialises diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring is pleased to advise the Company’s Somfit device has secured a major contract win with a world leading pharmaceutical Contract Research Organisation (CRO) for use in a series of significant pharmaceutical clinical drug trial to assess the impact on sleep of the new drug. The CRO was contracted by a major global pharmaceutical company to carry out the clinical trial for the proposed new drug. The pharmaceutical trial sale was driven by Compumedics Global Business Development, to further expand the USA business outlook.
The sale is evidence of the Company’s stated strategy to not solely focus on the very large USA-based home sleep testing (HST) market, but to also seek commercial opportunities in other adjacent markets. These adjacent markets include the pharmaceutical clinical trial market, where there is growing acceptance of the need for new drugs to be tested for their effects on sleep, before being approved.
Somfit was selected, amongst other reasons, for its ability to collect brain (EEG) signals directly, by applying the Somfit devices on the forehead using a disposable adhesive sensor. This enables determination of true sleep architecture analysis, rather than relying on surrogate or secondary signals, such as competitive finger-based home sleep testing systems. The Company believes this new and emerging pharmaceutical market will be more profitable, due to the more comprehensive PSG-based Somfit study capabilities.
This new Somfit contract further underpins the strong growth in our USA-based business over the current financial year, with sales orders taken for the financial year through to 16th May 2025, being USD12.0m compared to USD5.2m at the same time last year, representing growth of 130%.
Somfit sales orders taken in the USA for the financial year to 16th May 2025, were about USD1.8m ($2.8m), increasing from USD0.2m ($0.3m) at the same time last year, or about 800% growth. The addressable HST market in the USA, which continues as the primary commercial focus for Somfit, is between 3 million and 4 million HST’s a year, representing a market opportunity between $150m (USD100m) and $300m (USD200m) for Compumedics.
Further, the Company has now been awarded several Somfit sales orders from a global CPAP player and continues to work with other leading sleep service providers in Australia and other key markets around the world. This includes ongoing sales of Somfit into Europe, which are now close to EUR0.5m, representing the initial market activity in this next large market opportunity for Somfit.
As a result, the Company continues to expect sales orders taken to be more than $60m for FY25, with reported revenues (shipped and invoiced) lagging sales orders taken, as the Company adjusts for the significant growth in the business, particularly in the USA. As a result, the Company now expects reported revenues to be between $50m and $55m for FY25. This will be below the $55m previously advised. EBITDA, as a result, is expected to be about $3m, compared to $5m as previously advised.
Further, the Company confirms FY26 revenue guidance of at least $70m, as the Company will ship at least two of the three MEG orders currently on hand during FY26. This will result in EBITDA for FY26 being at least $9m.
About Compumedics Limited
Compumedics Limited [ASX: CMP] is a medical device company that develops, manufactures, and commercialises diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring applications. The Company owns Neuroscan, based in the US, and DWL Elektronishe GmbH, based in Germany. 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. The same year, the Company successfully designed and installed the first fully computerised Australian sleep clinic at Epworth Hospital in Melbourne. Following this early success, Compumedics focused on developing products for 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
P: +61 3 8420 7300
F: +61 3 8420 7399
David Lawson
Director, CFO
P: + 61 3 8420 7300
F: +61 3 8420 7399