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Respiri is an Australia-based medical device and SaaS company focused on respiratory health management through its integrated wheezo platform. 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.
Notwithstanding the relatively large target patient population (asthma and chronic obstructive pulmonary disease) in the US, the key consideration for Respiri’s US push is the already established reimbursement infrastructure. The Centers for Medicare and Medicaid Services 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.
Managing Director - Head of Content, Healthcare
Marjan Mikel
CEO
Nicholas Smedley
Chairman
Forecast net cash (A$m)
0.2
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 26.1 | 34.9 | 3.6 |
| Relative | 31.6 | 37.4 | 9.6 |
| 52 week high/low | A$0.1/A$0.0 |
Respiri’s H123 report summarised an eventful period, marked by commercial traction (six client wins; patient onboarding commenced at four centres) and recognition of the first remote patient monitoring (RPM) revenue from the Centers for Medicare & Medicaid Services (CMS). H123 revenues were A$0.6m (primarily R&D tax credits), lower than A$0.7m in H122, but we expect (wheezo-related) product sales to ramp up with increased patient onboarding and associated annuity income. The partnership-based US commercial strategy, along with tight checks on expenses, benefited operating performance, with the adjusted EBITDA loss improving 15% y-o-y to A$2.3m. The end-H123 cash balance of A$0.2m was bolstered by the A$1.9m post-period equity raise, which we estimate will provide runway into Q124. We adjust our estimates to reflect H123 performance and FX changes, which resulting in revising our valuation to A$165.5m or A$0.20/share (from A$189.1m or A$0.24/share previously).
| Y/E Jun | Revenue (A$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 | 1.7 | (4.2) | (4.2) | (0.51) | N/A | N/A |
| 2024E | 5.9 | (1.1) | (1.1) | (0.13) | N/A | N/A |
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