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Highlights
- ResApp’s ‘not so positive’ COVID-19 data confirmatory study results are dragging the share price down on ASX.
- The unfavourable study outcome has also resulted in a drop in the scheme consideration from Pfizer.
- The ResApp board, however, still recommends the Pfizer offer.
ResApp Health Limited (ASX:RAP), a known digital health firm, shared today the results of the Data Confirmation Study of its COVID-19 algorithm. This study can be directly associated with the revised scheme of arrangement with Pfizer Australia Holdings Pty Limited.
After the announcement, the shares were spotted trading 33.43% lower at AU$0.12 apiece at 12:00 PM AEST on the ASX.
RAP shares have lost 24.24% in the last five trading sessions. In the last six months, the share price has surged 108%, year-to-date gain is 78.57%, and shares improved by a whopping 150% in one year.
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Background of the data confirmation study and proposed takeover with Pfizer
ResApp undertook the data confirmation study to confirm the results previously announced by the company as part of its pilot study on independent data set. The study was in process when Pfizer and ResApp agreed upon the terms of the revised scheme.
Image source: © Robwilson39 | Megapixl.com
Since the study was ongoing, ResApp inked a revised scheme implementation deed with Pfizer. Under the revised scheme, it was stated that the scheme consideration payable to the shareholders will be dependent upon the results.
In case the result does not satisfy the confirmatory data readout conditions as per the revised scheme, then ResApp shareholders will be offered 14.6 cents per share instead of 20.7 cents the revised offer said.
The confirmatory data readout conditions were minimum sensitivity of 86% and minimum specificity of 71%.
The data confirmation study results shared by ResApp
According to the ASX-announcement, the Covid-19 algorithm of ResApp reported a sensitivity of 84% and specificity of 58%. These results were independently analysed and verified by an independent third-party statistician.
Since the confirmatory data readout conditions are not satisfied, the scheme consideration fell from AU$0.207 per share in cash to AU$0.146 per share in cash.
On the development, ResApp’s CEO and managing director said:
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