Shares in Compumedics have jumped after the Australian sleep monitoring and diagnostics device company announced new distribution agreements in China.
Compumedics, which says its sleep and brain monitoring equipment has been installed in seven of China’s top 10 hospitals, announced on Friday that it had secured new three-year distribution agreements with Chinese distributors and a new order worth $1.1 million.
Shares in the medical device business closed 5.75 cents, or 15.8 per cent, higher at 42.25 cents after trading as high as 45.5 cents during the session.
Compumedics chairman and chief executive David Burton said the company has further growth potential after working with its Chinese partners to establish a solid foundation in China.
“The company is well positioned to capture continued growth in sleep diagnostics, as well as expanding further into neurological monitoring, a relatively new and untapped market in China and other parts of Asia,” he said.
Compumedics makes devices to monitor sleep as well as activity and blood flow in the brain.
The company, whose market value reached $77 million on Friday, says more than 2000 of its systems have been installed almost 1000 Chinese hospitals and universities.