As market commenced trading today, ResApp stock price rushed to hit the gravity lifting the suspension that was in place since last 10 days. Market sentiments were so bearish that ResApp fell as much as 54.545% or $0.120 to last trade at $0.100 on 30 October 2018.
It has marked the worst day in the history of ResApp market trading session. But why did this sell off happen?
The plunge comes after the digital healthcare solutions provider, ResApp, released its long-awaited results on SMARTCOUGHC-2 study. This study was aimed at the diagnosis of childhood respiratory disease using cough sounds to build the telehealth solution for respiratory tract diseases.
The release scrolled the headline of “Positive Preliminary Results from SMARTCOUGH-C-2” but the market streaks were telling the different story. It seems investors have been expecting much more from the resources and time that the company has spent on the study.
ResAppDx, a smartphone application intended for the diagnosis of childhood respiratory disease was the subject of study. After evaluating its efficacy, the management confirmed that ResAppDx has achieved a positive percent agreement (PPA) between 73% and 78% and a negative percent agreement (NPA) between 71% and 86%.
These results have been drawn in comparison with a clinical diagnosis for lower respiratory tract disease, asthma/reactive airway disease and primary upper respiratory tract disease.
CEO and Managing Director of ResApp, Tony Keating stated that the results have demonstrated the ability of company-built algorithm to help the clinicians in making important clinical diagnostic decisions. He added that company’s smartphone enabled diagnosis are highly useful in settings such as telehealth, where a stethoscope and additional diagnostic tests such as a chest x-ray or blood tests are not available.
For the purpose of study 1,251 patients were analysed for respiratory illnesses. The participants were of the age group of 29 days to 12 years who were reportedly diagnosed by the centralised clinical adjudication committee with the help of existing clinical data, radiology and microbiology techniques.
Going forward the company intends to submit for United States Food and Drug Administration (FDA) approval in respect of asthma/reactive airway disease, lower respiratory tract disease and primary upper respiratory tract disease.
Commenting on regulatory approvals, Mr. Keating said that company’ FDA, CE and TGA submissions unlock an exciting phase for ResApp as it makes tangible progression towards commercializing its unique technology in multiple markets worldwide.
The management also advised that the results for pneumonia and bronchiolitis were less than 70% at this stage and submission for these diseases are due to occur in a second phase. Also, the detailed results of the SMARTCOUGH-C-2 study are reported to be presented at the scientific meeting, scheduled to be held shortly.
Though ResApp Health Limited (ASX: RAP) has witnessed the steep decline in today’s market trading session, it has experienced more than 2-fold increase since the past one year. That translates a rise of 214.29% in the daily price change of RAP over the past 12-month period.
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