herald sun article, page-3

SOMETIMES a company goes off the investment radar even as the products that underpin it slowly but surely jump through their hoops. KarmelSonix is just such a beast, with its interesting asthma and breathing-difficulty medical devices almost ready for commercial release.

The devices come in two varieties.

The first is an acoustic respiratory measurement device that automatically measures your "wheeze rate" as you sleep overnight, giving a doctor a much more detailed picture of breathing difficulties.

A second device, known as a Wheezometer, allows asthmatics to instantly monitor the severity of attacks and the effectiveness of their medication.

Europe and Asia Pacific managing director Paul Eisen said the devices met a clear need in the asthma and breathing-difficulty market and had mainly cleared regulatory and other hurdles, such as getting vital US insurance CPT codes that allow for reimbursement.

"There are a significant number of people who have overnight breathing difficulties who they are not even aware of," Paul said.

The home sleep device has been very well received by doctors using it in European and US hospitals.

All of which is well and good, but with a share price in the basement at 1.6c yesterday, what are the short-term value drivers for KarmelSonix?

The two main ones I can see are a potential second listing, most likely on the Nasdaq OTC exchange, and the potential for talks with big medical-device distributors to finally bear fruit and result in a deal.

It is not one for the risk averse, but KarmelSonix has done enough to earn a speculative buy.

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