AUS
NZ
UK
CA
USA
IND
Highlights
- New 5-Year Agreement with Philips: Compumedics will continue supplying its Somfit device to Philips' pharmacy-based sleep program in Australia through 2028, solidifying its position in the rapidly growing pharmacy-based sleep testing market.
- Expansion in U.S. Market: Somfit sales in the U.S. reached $1 million (USD 0.7M) in the past year, with further growth expected as new sales resources and partnerships are established.
- Market Opportunity: The U.S. home sleep apnea test (HST) market, valued at $150–$300 million, presents a significant growth opportunity for Compumedics’ Somfit device.
Compumedics Limited (ASX:CMP), a global medical device company specializing in diagnostic technologies for sleep, brain, and ultrasonic blood flow monitoring, announced a major milestone with a new five-year contract with Philips to supply its Somfit device to Philips’ pharmacy-based sleep program in Australia. The agreement will extend through 2028 and reinforces Somfit as the leading technology for pharmacy-based sleep testing in the country.
Australian Market Growth
Pharmacy-based sleep testing is currently the fastest-growing segment in Australia’s sleep diagnostic market. This model, which operates outside of Medicare, involves pharmacy staff identifying patients at risk of obstructive sleep apnea (OSA) and administering tests with the Somfit device. The tests are reported by Australian sleep physicians, and the program relies on simple, reliable equipment like Somfit that requires minimal expertise to operate.
Compumedics has been collaborating with Philips since August 2023, with Philips serving as a distributor of the Somfit devices and electrodes to pharmacies. The company views its partnership with Philips as a crucial factor in its success within this burgeoning market.
Additionally, Compumedics is poised to benefit from potential regulatory changes in Australia, as Medicare is investigating reimbursement for Level 3 and Level 4 sleep studies, which could further expand the market.
U.S. Market Momentum
Compumedics has also made significant strides in the United States, achieving $1 million in sales for the Somfit device within the past year—a considerable achievement given the zero base just 12 months ago. With new sales resources and partnerships with three large Independent Diagnostic Testing Facilities (IDTFs), the company expects to accelerate its growth in this key market.
The U.S. home sleep apnea test (HST) market represents a substantial opportunity, with an estimated annual volume of 3–4 million tests and a market size of $150–$300 million (USD 100–200M). Compumedics is actively conducting trials and demonstrations with IDTFs, with one already integrating the Somfit device into its HST business.
CEO Comments and Market Impact
Following the announcement, Compumedics’ share price rose nearly 6% to 32.5 cents per share as of January 22, 2025, reflecting investor confidence in the company’s expanding global presence and growth potential.
