- Digital healthcare service provider ResApp Health Limited announced the signing of a non-exclusive marketing agreement with Australia’s largest consumer healthcare network, HealthEngine.
- As part of the agreement, HealthEngine’s booking engine will be integrated with ResApp’s SleepCheck, a mobile medical application.
- ResApp will retain the revenue derived from the download of SleepCheck. Also, it will get a share of the revenue from HealthEngine for each new patient referred.
The share price of small-cap healthcare ResApp Health Limited (ASX:RAP) moved north following the Company’s announcement that it had signed a non-exclusive marketing agreement with HealthEngine. HealthEngine is the largest consumer healthcare network across Australia.
On 21 October 2020, the share price of RAP was noted at A$0.105 up by ~5%, with a market capitalisation of A$75.81 million.
Let us dive deep and discuss ResApp’s agreement in detail-
About ResApp Health
ASX-listed digital health player ResApp Health Limited is engaged in developing smartphone-based applications to diagnose as well as manage the respiratory indications. The machine learning algorithms of ResApp diagnose and measure the severity of respiratory conditions by using sound, requiring no additional accessories or hardware.
ResApp’s marketing agreement with HealthEngine
On 21 October 2020, ResApp Health Limited disclosed that it had signed a non-exclusive marketing agreement with Australia’s patient network, HealthEngine. The agreement has been signed for 12 months.
The Company revealed that the agreement with HealthEngine aims to integrate its booking engine into SleepCheck, the mobile medical application of ResApp. In return, HealthEngine will also encourage the use of ResApp’s SleepCheck.
SleepCheck is an easy-to-use, direct-to-consumer mobile application that utilises accurate algorithms for assessing the risk of OSA (obstructive sleep apnoea) in a person by analysing breathing and snoring sounds during sleep. Besides, it does not require any accessories or hardware for the assessment, other than the user’s smartphone.
The new revenue stream for ResApp Health
The revenue-sharing model generates a new revenue stream for ResApp Health and offers the Company with another partnership agreement to strengthen the scale-up of the SleepCheck application.
The agreement also validates the Company’s offering from a top tier Australian digital healthcare player. This agreement can be extended by both companies.
The revenue from the agreement cannot be estimated at this early stage and is dependent on new patients referred to HealthEngine via SleepCheck. However, ResApp is confident of substantial consumer uptake.
ResApp’s CEO and Managing Director Dr Tony Keating stated-
ResApp’s partnership with Australia’s largest consumer healthcare network is a tremendous achievement for the Company, and it also highlights a huge potential for SleepCheck across the Australian market. Further, the agreement also provides great validation of ResApp’s services from another industry-leading partner.