Strong US sales help lift SomnoMed shares
Shares in Australian sleep medical device company SomnoMed have recovered from their 14-month low after the company announced a return to growth of sales in its US market during the fourth quarter.
SomnoMed, which supplies oral appliance therapy for patients with sleep-related breathing disorders, faced a tough period in the second and third quarter of the year but finished 10.9 per cent higher at $3.15 on Monday following the upbeat quarterly report.
The company said a strong final quarter in the US - where sales lifted 24 per cent - had delivered unaudited quarterly group revenues of $14.3 million - up 22 per cent - and $49.3 million for the 2016/17 financial year - up 12 per cent on the previous corresponding period.
SomnoMed chief executive Derek Smith said the revenue growth was on the back of a strong climb in sales to licensees as well as device sales to the company's Renew Sleep Solutions (RSS) outlets.
Mr Smith was also pleased with the company's growth in Europe, with the fourth quarter climbing 20.6 per cent, year-over-year, thanks to strong sales.
He said improved reimbursement regulations, particularly in France and Belgium, will bring in further growth from newer European markets.
Meanwhile, Australia and New Zealand sales were two per cent below the prior year for the fourth quarter but showed 10 per cent growth in June, the final month of the period.
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