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ResApp Health Limited (ASX:RAP) is a leading digital health company. It focusses on making smartphone applications for the
management and diagnosis of respiratory diseases. Its machine learning algorithms make use of sound to spot and calculate the seriousness of respiratory conditions without the aid of extra hardware.
Clinical studies at top Australian hospitals and the United States have reported precise diagnosis of lower respiratory tract disease, bronchiolitis, reactive airway ailment, upper respiratory tract infections and other respiratory infections. Potential clienteles of the companyâs products are healthcare providers in tele-health, urgent care wing, emergency department and primary care settings. Humanitarian organisations too make use of RAPâs offerings.
On 29th May 2019, the company announced that it had onboarded UK-based medical device consultancy- Avanti Med Limited. The consultancy, along with UK based OSI Electronics, would develop customised hardware and wearable devices ready to run in resAppâs leading machine learning algorithms.
The company is focused on providing mobile software apps in various clinical forums. These hardware devices would be an add on to its portfolio and expand the companyâs reach to in-person clinical environments. The consultancy and OSI electronics, which is a medical device manufacturer, would develop, test and finalise two CE-marked devices. One would be a less cost option and ruggedized, hand-held device. The other would be a tiny and wearable breathing monitor device.
The hand-held device would be Androidâ¢-based. It would be complementary to the off-shelf smartphones. It would use RAPâs mobile software diagnostic app in environments where specific hardware characteristics are required. The other device, the wearable monitor would be easily worn and bear potential to keep a check, through the day, on patients suffering from chronic disease.
The functional prototypes of both the devices are anticipated to be received within nine months. Further, the company is expecting a CE Mark approval in 2020. Tony Keating, RAPâs CEO and Managing Director stated that the approval would pave a path towards commercialisation of running the smartphones in the European markets. It would also add to the companyâs selling point in the companyâs well established in-person care segment.
The outsourcing of hardware development aids RAP to continue focussing on delivery of clinical-quality algorithms for smartphones in the tele-health and in-person settings. The addressable market expands and there is more exposure via additional, specialised platforms where RAP delivers its algorithms. The company is in a solid position to pay for milestones in cash or shares. This reduces financial risk, while optimises the cash flow.
For each device, the company would pay £75,000 in cash. Further, it would issue A$250,000 worth shares upon kickstarting the project.
The three milestones set are:
- Delivery of functional prototypes.
- Delivery of final designs.
- CE Mark approval.
For each of the above, when achieved, RAP would pay A$500,000 in cash or shares. The company possesses rights to terminate, during the project. If target milestones are not met, RAP can exercise this right too.
Share Price Information:
As on 30th May 2019, the stock is trading at A$0.160 on ASX (as at AEST: 12:28 PM), up by 3.226% as compared to its previous dayâs close.
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