Compumedics signs lucrative China deals
An agreement worth $20 million signed with sleep diagnostics distributor in Northern China
Second agreement, worth $4.4 million, inked with sleep and neurological distributor in Eastern China
Special Report: Compumedics, a global medical device company specialising in sleep, brain and ultrasonic blood flow monitoring, has signed two new four-year distribution agreements with long-standing partners in China worth a combined $24.4 million.
These deals further strengthen Compumedics' (ASX:CMP) footprint in Asia, and China in particular, where the company has a long history and current distribution partners of more than 25 years.
The first $20m agreement extends Compumedics' established partnership with its long-term Northern China distributor focused on sleep diagnostics.
The second, valued at $4.4m, renews a long-standing relationship with an Eastern China distributor focused on sleep and neurology.
Both agreements include a minimum of 10% per annum growth commitment, providing a clear trajectory for expanding sales in one of Compumedics' most strategically important markets.
The agreements reflect the company's continued strategic shift toward a more diversified and resilient revenue base, both geographically and across product lines.
Strengthening key relationships in Asia, particularly in China, aims to reinforce Compumedics' ability to drive consistent growth through its core sleep and neurology platforms.
With a solid foundation in place and demand accelerating across multiple international markets, the company is working to remain well positioned to scale efficiently and deliver sustained, profitable growth into FY26 and beyond.
Return to profitability in FY25
Compumedics recently reported record revenue of $51m and sales orders of $63.4m in FY25 and a return to profitability with EBITDA increasing to ~$3m.
Its sleep and neurology segment orders rose 39% to $53m in FY25, led by US sleep diagnostics growth up 102% to $23.5m.
Its Neuroscan Orion LifeSpan magnetoencephalography (MEG) orders totalled $5.9m, with three systems in progress for reported revenue in FY26 valued at ~$15m.
MEG is an advanced brain imaging technique that maps neural activity by detecting the tiny magnetic fields produced by electrical currents in the brain.
Compumedics' Neuroscan Orion LifeSpan MEG system offers enhanced precision and full integration with its CURRY software, which records and analyses EEG, MEG and ERP for comprehensive brain function insights.
The company has reaffirmed its FY26 guidance of revenue of at least $70m and EBITDA of ~$9m.
'China remains key engine for expansion'
Compumedics is establishing itself as the dominant supplier of MEG technology in the growing Chinese neurosciences market.
In March the company received a new order from Hangzhou Normal University (HZNU) in China for its MEG system valued at $5.7m, which is scheduled to ship in early 2026 following site preparations.
That order brings installations to four Compumedics MEG labs in China for a total of ~$20m in revenues.
Executive chairman and CEO Dr David Burton said the new agreements highlighted Compumedics' strategic momentum and supported its long-term growth plans.
'These agreements demonstrate the strong momentum behind the step-change underway at Compumedics, a shift focused on profitable growth, recurring revenue and geographic diversification,' he said.
'China remains a key engine for expansion and these multi-year contracts secure predictable, growing revenues in one of our most strategically important markets.
'Coupled with increasing traction in the US and across our connected platforms, we are now scaling a more focused, cash-generative global business.'
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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