The investor momentum has been driven by the company entering into a joint venture with Meinian Onehealth Healthcare Holdings Co., Ltd. (Health 100) – a leading China-based premium health-check organisation.
A framework agreement has been signed with a period of 90 days to execute the joint venture, with Compumedics to hold 49% and Health 100 the remaining 51%.
Dr David Burton, chairman and CEO of Compumedics, commented:
"Compumedics and Health 100 have been in discussions for some time now about the way both parties, together with the Somfit product and technology platform, can transform sleep and brain healthcare in China."
What is Somfit
Somfit is the first of its kind consumer-level, medical-grade wireless wearable sleep system, incorporating Compumedics’ widely deployed and validated ‘gold standard’ sleep analytics.
Somfit technology allows everyone, everywhere, anytime to access personalised management of true-sleep measures based on Compumedics’ proven and widely deployed sleep analytics.
The Somfit platform covers sleep and associated disorders, including sleep-disorder breathing, sleep treatment devices, cardiology, respirology, neurology and diabetes, among other sleep-related health management disciplines.
In addition to the deployment of 1 million Somfit systems and associated health management platforms and device eco-systems, the joint venture also involves the establishment of Health 100’s sleep management network spanning the Health 100 centres in Greater China.
Joint venture financials
Compumedics will receive a $11.3 million pre-tax payment as an upfront payment in part for providing the joint venture with the Somfit-related intellectual property and technology rights for the Greater China region.
Health 100 will commit to purchasing an initial 1 million Somfit devices for the China market in the first two years following the Somfit device receiving China Food and Drug Administration (CFDA) approval.
Compumedics said this sale will generate at least $133 million revenue to the joint venture over this period.