ASX Announcements

Compumedics’ Germany based business wins fourth key sleep-diagnostics devices contract

28 Oct 2009

Melbourne Australia, Wednesday 28 October, 2009

Leading medical devices company, Compumedics Limited (ASX: CMP) today announces a further major milestone for its newly established Germany-based sleep-diagnostics capital-equipment business of winning an additional AUD366K (€230K) sleep-diagnostics devices contract with a another prestigious customer in Berlin.

The ZSL (Zentral Sleep Lab) Service GmbH, based in Berlin, Germany, is a major sleep-diagnostic facility.  This sleep lab serves as a major referral centre for the capital city of Germany and its surrounding districts, which combined, comprise a population of well over 3.5 million people.  This sale will enable Compumedics to continue to expand its brand through the many sleep-diagnostic facilities in Germany.

In the space of the past six months, Compumedics has won approximately $1.3 million (€795K) in German business, attributable to its direct-sell model. Successes to-date, in Gerlingen (AUD400k), Offenburg (AUD300k), Köln (AUD353k), and Berlin (AUD366k) represent major customer facility penetration only.  More importantly, the winning of these sales has displaced equipment from a number of incumbent competitors.  This achievement not only validates Compumedics’ direct-sell model in Germany, but also supports the technical superiority and usability of Compumedics’ range of sleep-diagnostic devices.

Mr David Burton, Compumedics Executive Chairman, commenting on this achievement, said,

“This additional deal marks another important milestone for the Company and affirms the Company’s direct German market presence, along with the vast untapped opportunity for Compumedics’ suite of sleep products.  The combination of Compumedics’ comprehensive portable Somté® PSG AASM devices, coupled with the Company’s Nexus clinical enterprise management-system and the new premier sleep-laboratory GraelTM system, appear to be well suited to the knowledgeable and sophisticated German sleep market. 

In particular, Markus Rosenstingl and Frank Dunkel, who jointly lead our German division, have demonstrated the strength of their superb local knowledge and sleep-diagnostics experience.  The Berlin sleep centre, similar to those in Stüttgart, Köln and Gerlingen are key centres for clinical and research excellence in the sleep field, from which Compumedics will continue to advance its focus of providing equipment for sleep medicine and services to the German sleep community.  Compumedics’ strategy is to develop the German market as one of its principal revenue sources, in a similar manner to the development of Compumedics USA, which today represents about 50% of Compumedics revenue.”

Germany is the world’s third largest medical device market and Europe’s largest.  As such, Germany is a key driver for Compumedics’ future growth in Europe, having over 300 accredited sleep clinics and a market potential of about USD36 million per annum.  The winning of these contracts further confirms Compumedics’ strategic advancement in developing Europe as a principal market for the Company, and Compumedics’ continued focus on key global markets.

According to David Burton, Compumedics’ German and US businesses are now making a very significant impact to the sales performance of the company in improving worldwide market conditions. He said,

“The establishment of the German business follows the development of the Company’s USA direct-sales business, now responsible for approximately 50% of the Company’s annual sales of about AUD40 million per annum.  Revenues in the USA have grown from about USD1 million in 2000 to USD13 million in 2009, representing year-on-year growth of approximately 40 per cent.”

For Further information:

Investor Relations & Media Enquires:
Mr Rod North
Managing Director
Bourse Communications Pty Ltd
Phone: +61 3 9510 8309
Mobile: +61 (0) 408 670 706

About Compumedics

Compumedics Limited, founded in 1987, is a global leader in the design and manufacture of diagnostic technologies for sleep disorders, neurophysiology and cardiology.

In 1987 Compumedics established Asia Pacific’s first fully computerised sleep laboratory.  Compumedics holds 80% share of the Australian sleep-diagnostic market, and has a major and rapidly growing presence in the US, European and Asian marketplaces for its sleep, neurological, and Doppler blood-flow diagnostic monitoring devices. 

In 1995 the company was selected to supply equipment to the US Sleep Heart Health Study, the world’s largest sleep study of its kind, currently exceeding 14,000 studies with 20,000 patients scheduled by 2008. With headquarters in Melbourne, Australia and offices in the United States, and Europe the products are distributed in over 50 countries. 

In 1998 Compumedics was awarded the overall Australian Exporter of the Year. 

In 2000 Compumedics was listed on the Australian Stock Exchange. 

In 2002, Compumedics acquired US-based Neuroscan - the world's leading supplier of instruments for brain-research.  In the US - the world's largest medical device market - Neuroscan holds around 90% of the market for brain-research products.  

In 2003 Compumedics was awarded the Frost & Sullivan Award for Market Expansion Strategy. 

In 2004, Compumedics acquired German-based DWL Elektronishe GmbH, enabling Compumedics to expand its global operations into the neurovascular and cardio-vascular diagnostic fields. 

In 2006, Compumedics was awarded the Frost and Sullivan Technology Leadership award for the innovative Somté recorder product. 

In 2007, Compumedics and Chairman were inducted into the Victorian Manufacturing Hall of Fame. 

In 2008 the DWL division received the top 100 German Innovation award.  With 20,000 systems installed globally across the finest hospital, universities and clinics the Compumedics sales have grown more than 4 fold from $9 million (1999) to $39 million (2008). 

In 2009 Compumedics was awarded a design award for its Grael™ PSG/EEG premium laboratory based product.

Viait : www.compumedics.com for more information

Back