Compumedics wins sales as broker lifts target ~140pc
Sales to a leading CRO in US and a Finnish pharmaceutical company support strategy to expand in adjacent markets
East Coast Research revises Compumedics target price to 75 cents per share, showing upside potential of 138.7%
Special Report: Compumedics has secured lucrative multiple Somfit sales to leading pharmaceutical and clinical research organisations (CROs) in the US and Europe East Coast Research sees an almost 140% upside to its current target price.
Compumedics (ASX: CMP), a global medical device company specialising in sleep, brain and ultrasonic blood flow monitoring, has inked a sale with a leading CRO for its Somfit devices.
The company noted the devices will be used in a major US-based clinical drug trial with one of the world's largest pharmaceutical companies.
Compumedics also secured a second sale with Finland-based global pharmaceutical firm Orion Pharma for deployment of Somfit devices across a multi-country, multi-centre clinical study in Europe.
Somfit is a wearable device used for collecting physiological data during sleep with combined revenues from both sales approaching $2 million.
The sales support the company's strategy to expand into adjacent markets, where Somfit's ability to collect electroencephalography (EEG) signals and provide insights into sleep stages and patterns provides a distinct advantage over traditional home sleep testing systems.
The contracts also validate Somfit's clinical value proposition in the pharmaceutical sector, where understanding the effects of new drugs on sleep is becoming an increasingly important regulatory and research requirement.
'Building a diversified global business'
Executive chairman and CEO Dr David Burton said the sales wins highlight the growing momentum Compumedics was seeing for Somfit in new market segments.
'The pharmaceutical clinical trial market is an ideal adjacency for our technology, and these early contracts, approaching $2 million in combined value, demonstrate Somfit's versatility beyond traditional home sleep testing,'
'This is another important step in building a diversified global business with multiple high growth pathways."
Compumedics expects to build on this early traction, continuing engagement with major pharmaceutical companies and research institutions worldwide.
Broker re-rates Compumedics following milestones and global expansion
Meanwhile, East Coast Research has revised its target price for Compumedics to 75 cents per share, representing an upside potential of 138.7% from the share price at the time of its review and an 11.9% increase on its previous 67 cent target set in March.
In its updated valuation, East Coast Research set a base case of 59 cents per share and an upside case of 92 cents, with a price-to-NAV (net asset value) of 0.42x.
The Sydney-based equity research house said the re-rating reflected several key achievements, including:
Record FY25 sales orders of $63.4m, up 22% YoY and return to profitability with $3m EBITDA for the financial year
Validation of its world-first dual-use Orion LifeSpan MEG system
Strong FY26 guidance with $70m in revenue and $9m in EBITDA supported by US launch of Somfit D, rising SaaS contributions and delivery of three MEG systems
A $24.4 million pipeline secured through two long-term distribution agreements in China
Broader entry into pharmaceutical trials
'These developments not only strengthen CMP's position in high-growth segments like SaaS and brain imaging but also significantly de-risk its revenue outlook and enhance its value proposition in the global medtech and connected health markets,' the broker noted.
East Coast said Compumedics remained well-positioned for long-term value creation.
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.
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