Compumedics wins $1m EEG deal

Diagnostics technology developer Compumedics (ASX:CMP) has won a $1 million contract to supply EEG (electroencephalography) equipment to Yale University.

The contract, awarded by the Yale School of Medicine's neurology department, is for the supply of a Long-term EEG Monitoring (LTEM) system, recording devices and supporting software.

The department plans to use the systems to provide routine clinical EEG and surgical monitoring.

Compumedics CEO Dr. David Burton said the win “validates our key growth strategy to penetrate the global LTEM market, [which] alone is more than twice the size of our existing core sleep diagnostic business.”

Compumedics estimates that the LTEM/neurology market is worth $250 million per year.

The company has “made significant investments in product development targeting the neuro-diagnostics market,” Burton said, adding that the investments are showing signs of bearing fruit - the company had already won several significant EEG orders in the US in 1H12.

Burton established Compumedics in Melbourne in 1987 to design the first Australian fully computerised sleep clinic. The company established a US office in 1999, and was listed on the ASX in 2000.

Compumedics (ASX:CMP) shares were trading unchanged at $0.090 as of 3:30pm Wednesday. The shares have been oscillating through a range of $0.080 to $0.090 for several months.