Respiri

ASX: RSH

Market CapAU$33m

Last Close AU$0.04

Respiri is an Australia-based company developing SaaS diagnostic solutions to support respiratory health management. Its technology records data such as wheeze rates, breath recordings and other environmental factors and medication usage. Wheezo was launched in the US in December 2021.

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Investment summary

The Respiri/Access Telehealth collaboration continues to make steady gains in the US with the partners announcing their fourth commercial deal to date, with Arkansas Heart Hospital (AHH), a healthcare facility focussed on cardiovascular health. The program will focus on assessing the utility of Respiri’s wheezo device in a remote patient monitoring (RPM) setting using Access Telehealth’s cloud-based RPM solution, Remotli. The target population will include cardiovascular patients also suffering from chronic obstructive pulmonary disease (COPD), a common comorbidity. The deal follows close on the heels of the recent agreement signed with Minnesota Lung Center, although we note that, unlike the former, the AHH deal forgoes the requirement for an initial pilot study. Patient recruitment is expected to commence with immediate effect. As with the previous deals, we expect the monitoring services to be eligible for reimbursement under the Centers for Medicare and Medicaid Services’s (CMS’s) Current Procedural Terminology reimbursement codes for RPM. The market has reacted positively to the news, with the stock closing 18% higher.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2021A 1.4 (8.4) (8.5) (1.22) N/A N/A
2022A 0.8 (6.2) (6.3) (0.87) N/A N/A
2023E 5.0 (2.3) (2.3) (0.29) N/A N/A
2024E 8.1 0.4 0.4 0.03 136.7 N/A
Industry outlook

Notwithstanding the relatively large target patient population (asthma and COPD) in the US, the key consideration for Respiri’s US push is the already established reimbursement infrastructure. In the US, the CMS has established CPT codes for RPM reimbursement coverage. With key technology patents, two telehealth partners and reimbursement arrangements in place, Respiri is well positioned and has a first-mover advantage.

Last updated on 30/11/2022
Content on Respiri
Respiri – Commercialization efforts gathering steam
Healthcare | research Flash note | 28 November 2022
Sad illness child on home quarantine. Boy and his teddy bear both in protective medical masks sits on windowsill and looks out window. Virus protection, coronavirus pandemic, prevention epidemic.
Respiri – Wheezo bags third client win in the US
Healthcare | research Flash note | 18 November 2022
Sad illness child on home quarantine. Boy and his teddy bear both in protective medical masks sits on windowsill and looks out window. Virus protection, coronavirus pandemic, prevention epidemic.
Respiri – First patient enrolled in the US RPM programme
Healthcare | research Flash note | 8 November 2022
Sad illness child on home quarantine. Boy and his teddy bear both in protective medical masks sits on windowsill and looks out window. Virus protection, coronavirus pandemic, prevention epidemic.
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Share price graph
Balance sheet
Forecast net debt (A$m) 0.1
Forecast gearing ratio (%) 4
Price performance
%
1m
3m
12m
Actual 2.5 (8.9) (30.5)
Relative* (4.0) (11.9) (29.4)
52-week high/low A$0.1/A$0.0
*% relative to local index
Key management
Nicholas Smedley Chairman
Marjan Mikel CEO