Compumedics Limited (ASX:CMP) should trade higher after securing...

Compumedics Limited (ASX:CMP) should trade higher after securing a key contract with its primary distributor into China, Beijing Bestmed. 

The new contract commits Bestmed to revenues of US$5 million over the next three years for Compumedics new eHealth platform and potential growth within the five year period to US$13.2 million. 

Compumedics and Bestmed are currently number one in the Chinese market for imported sleep diagnostic equipment.

Since 2013, Compumedics has focused on transforming its sleep diagnostic technology into an integrated cloud based solution for monitoring and diagnosing sleep disorders.

These new Compumedics Medical Innovation Services have a five year market growth outlook estimated between US$50 billion and US$70 billion for wearable technology, US$8 billion for mobile health and US$35 billion for telemedicine.

Securing this new contract is another significant step for Compumedics as it will enable the completion of the first round pre-commercialisation phase for the eHealth platform. 

This US$5 million contract follows the announcement in early July regarding the signing of four contracts in other key markets in Asia totalling US$4.1 million.

Compumedics is continuing its discussions with additional partners and has agreements already in place with five partners in the Asian region. 

Compumedics has installed monitoring centres in the majority of Australian Hospitals Universities and associated neurology and sleep diagnostic monitoring centres.

World-wide, Compumedics has installed over 20,000 patient monitoring systems.

The company is valued at around $21 million.