Compumedics inks $1m deal with leading researchers for sleep monitoring device

• Compumedics wins new Somfit sale worth about $1 million to one of the world’s leading pharmaceutical contract research organisations
• Somfit will be used in a series of pharmaceutical clinical trials to assess impact on sleep of a new drug
• Compumedics notes sale demonstrates Somfit is well suited in adjacent markets to home sleep testing

Special Report: Compumedics has secured a major ~$1 million contract with a leading global pharmaceutical contract research organisation (CRO), under which its Somfit device will be used in a series of clinical drug trials to assess the new drug’s impact on sleep. 

The sale of Somfit was driven by Compumedics Global Business Development as the company looks to further expand its US business strategy beyond the home sleep testing (HST) market.

Compumedics (ASX:CMP) is a global medical device company that develops, manufactures and commercialises diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring.

Somfit is a wearable device used for collecting physiological data during sleep, primarily for diagnosing sleep disorders such as sleep apnoea.

With a foothold in the very large US-based HST market, Compumedics is now also seeking commercial opportunities in other adjacent markets.

These 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 approval.

The company said Somfit was selected by the CRO, 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.

Compumedics believes the new and emerging pharmaceutical market will be more profitable for the company, due to more comprehensive polysomnography (PSG) based Somfit study capabilities.

Strong growth in US in FY25

Compumedics said the new Somfit contract further underpins the strong growth in its US-based business over FY25.

Sales orders taken for the financial year through to May 16, were US$S12m compared to US$5.2m at the same time last year, representing growth of 130%.

Somfit sales orders taken in the US for the same date were about US$1.8m, up from US$200,000 at the same time last year, representing 800% growth.

The addressable home sleep testing (HST) market in the US, which continues as the primary commercial focus for Somfit, is between three and four million  annually, representing a market opportunity between $150m and $300m for Compumedics.

Further, the company has now been awarded several Somfit sales orders from a global continuous positive airway pressure (CPAP) player and continues to work with other leading sleep service providers in Australia and other key markets globally.

This includes ongoing sales of Somfit into Europe, which are now close to 500,000 euro representing initial market activity in the next large market opportunity for the device.

Sales orders to exceed $60m for FY25 but revenue lag

Compumedics maintains it expects FY25 sales orders exceeding $60 million, with reported revenues (shipped and invoiced) expected to trail orders as the company scales to meet strong growth, particularly in the US market.

As a result, the company now expects reported revenues to be between $50m and $55m for FY25, below the $55 million 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 it will ship at least two of the three (magnetoencephalography) MEG orders currently on hand during FY26.

Compumedics said this would result in EBITDA for FY26 being at least $9m.

This article was developed in collaboration with Compumedics, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.