Compumedics Somfit® Key Strategic Milestone Execution Update – Australia

Compumedics Limited (ASX: CMP) (“Compumedics” or “Company”) is pleased to further update the market in relation to the ongoing execution of its Australia-based key strategic milestone activities regarding its novel Somfit® technology platform.

Compumedics is pleased to announce that it has signed an initial distribution agreement with CPAP Direct to sell Somfit and Somfit Pro, including recurring services and supplies into Queensland. The initial first year minimum commitment is $0.5m, which includes $0.2m of recurring service revenues. It is anticipated that service revenues will grow more than three-fold over the initial 24 to 36 months as the Somfit platform is rolled out across the state.

CPAP International Pty Ltd T/A CPAP Direct and Sleep Testing Australia, was founded in 2014 and acquired CPAP Direct as a small existing business from the original owner. Since then, CPAP Direct has grown to be Australia’s largest independent Australian family-owned CPAP supplier. It continues its expansion plans both in the sleep diagnostic service sector and sales and support to the end user through their retail clinics across Australia.

CPAP Direct currently employs more than 100 staff and operates 20 dedicated retail clinics as well as service a growing list of wholesale partners with an end-to-end solution for both sleep diagnostics and CPAP product supply and support.

Both Sleep Testing Australia and CPAP Direct have grown to be one of the most recognised and trusted sources for Australians to access sleep diagnostics, sales and support in the sleep disordered breathing sector with the mission to positively enhance the lives of those living with sleep and respiratory conditions.

Following the national Supply Agreement signed as announced to the ASX on 3rd July, 2023, this is the first of what is expected to be several state-based distribution contracts that will cover the whole of Australia as part of a complementary 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 Distribution Agreement with CPAP Direct addresses the existing OSA HST market in Australia.

Compumedics anticipates further announcements as it concludes similar commercial arrangements across Australia and then into the much larger US market.

For more information on Somfit :  Visit the Somfit product page or contact your local Compumedics representative.