Compumedics secures additional $1m Chinese order
Additional $1m contract in China underpins key growth focus on emerging markets for Compumedics
* Compumedics’ Germany-based business, DWL, continues to expand its Chinese market presence booking another $1m (EUR750k) order
* Compumedics Group sales to China increases momentum with FY2012 sales growth expected to be at least 40% over FY2011, an increase over the 38% growth in sales to China achieved in FY2011
* Compumedics has over a 20-year period become the premier supplier of China sleep, neurology and ultrasonic Doppler blood-flow monitoring systems, with an unsurpassed array of key-opinion-leader Compumedics’ reference-centers now established across China and Hong Kong
Compumedics Limited (ASX: CMP) is pleased to announce the Company’s Germany-based brain blood-flow ultrasonography division, Compumedics Germany GmbH (DWL), has secured new orders of approximately €0.75 million (≈AUD1.0 million) from Beijing Beike Digital Medical Technology (Beike) for the purchase of DWL® products.
This adds to the €0.6 million (≈AUD0.9 million) order received in early FY2012, bringing total business, for DWL, for the financial year-to-date to $1.7m (€1.3m) or a 37% increase, compared to the entire prior financial year. This milestone for Compumedics Germany continues to underpin the Compumedics Group’s growing presence in China and is further evidence the Company’s growth strategy of focusing on this growing market is well on track.
As a result of the Group’s successful and highly developed partnerships in China, Compumedics has achieved the following outcomes over the past 5 years, with significant momentum building over the last two years:
• Since FY2007 Group sales to China have almost tripled from USD1.8m to USD4.4m in FY2011
• Sales growth into China has gained momentum in the last two years with DWL sales growing 10% in FY2010 and a further 37% in Y2011 with FY2012 growth likely to be in excess of 37%, at this point in time
• Since FY2007 sales of Compumedics® sleep diagnostic systems have grown 400% from USD0.25m to USD1.0m in FY2011, providing an enormous opportunity for future growth given China’s potential market size and its early phase of development
• Across the Asia region, including India, Compumedics has grown its sales from the region by about 11% per annum from USD4.5m in FY2007 to USD7.6m in FY2011
• Compumedics new neuro-diagnostic range of products, including the Neuvo® long-term EEG monitoring (LTEM) system, remains an untapped commercial opportunity in the region with initial sales forecast for FY2012.
Compumedics remains focused on growing the Group through:
• Expansion of the Company’s existing products into emerging markets particularly China; and
• Continuing the initial penetration of the neuro-diagnostic market, particularly the US, with Compumedics new range of neuro-diagnostic products, including the Neuvo® LTEM system
In commenting on the further boost to Compumedics’ China business, Dr. David Burton, Chairman and CEO, said:
“These significant sales orders achieved through the course of the financial year further validate Compumedics’ superior product offering, highlighting another important milestone for our Company. They reinforce our commitment to developing Compumedics’ potential for exponential growth in the Asian markets, particularly in China.”
“A recent study by the Shanghai Institution of Traditional Chinese Medicine for Sleep Disorders, published in the China Daily, estimates that up to 38% of the population of Shanghai suffers from some form of sleep disorder. In a city of 19 million people, this represents approximately 7 million potential sleep disorder patients who would greatly benefit from Compumedics’ products.”
“Market research (Global Data 2010) confirms that Sleep Apnea Diagnostic Systems have been reported as the fastest growing category within the Chinese anaesthesia and respiratory devices market, with growth rates of 15.7 % between 2002 and 2009 and a forecast of 14.1% between 2009 and 2016. Importantly, in partnership with an extraordinary long-term network of existing distributors, Compumedics has established itself over the past 2 decades as the leading supplier of premier sleep and also neurology systems amongst the finest Chinese hospitals, universities and clinics, alike. Coupled with Compumedics’ Australian headquarters ideal geographical positioning and global brand recognition built up over 25 years, we believe it is imperative that we investigate the potential to further strengthen our Chinese investment and trade prospects. The prospect of Compumedics further combining Chinese investment, manufacturing and engineering resources with Compumedics global market sleep and neurology technological and innovative leadership can provide a formidable expanded business opportunity and will be vigorously pursued.” Dr. Burton added.
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