Investors might be taking a closer at Somnomed Limited (ASX: SOM), a healthcare business.
Somnomed was founded in Sydney in 2004 and it provides diagnostic and treatment solutions for sleep-related breathing disorders including obstructive sleep apnea, snoring and bruxism. Somnomed was commercialised using clinical research. Its offering is called SomnoDent which the company says uses state of the art and clinically proven medical oral appliance therapy.
Somnomed’s Patient Growth
Today, Somnomed announced that during June 2019 it had passed 500,000 patients worldwide. These are patients that have been treated with the SomnoDent oral appliance therapy.
SomnoMed CEO Neil Verdal-Austin said:
“This is an important milestone for our company. We are very proud of this achievement, as it confirms our position as the global leader in oral appliance therapy for the treatment of obstructive sleep apnea. More importantly, we are very satisfied having been able to assist a significant number of patients in being effectively and appropriately treated for their obstructive sleep apnea condition.
“Most of the patients treated tell us of their ongoing success with the therapy and how this has changed their lives. The high compliance rates, shown in internal patient surveys, confirm that these patients are achieving a very effective medical outcome and experience an improvement in their quality of life with the SomnoDent therapy option.”
What Has The Reaction Been?
So far the reaction has been quite muted. The Somnomed share price has only risen by 0.65% in early trading, meaning that it is still down by about 33% over the past year. The current share price of $1.55 is a long way below the January 2018 price of almost $4.
SomnoDent is an interesting business, with the therapy approved and validated in 28 countries. It has an attractive global growth outlook. However, it’s not the type of business I would put in my portfolio because I’m not sure how to evaluate the opportunity. Ultimately, I’m happy to leave it on my watchlist.
I would much rather invest in the exciting growth shares in the free report below instead.
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