Currency in AUD
Last close As at 03/02/2023
AUD0.05
— 0.00 (0.00%)
Market capitalisation
AUD37m
Research: Healthcare
Respiri has announced that the first patients have been enrolled in its wheezo remote patient monitoring (RPM) programme in the United States. Respiri also expects the two signed US clients, Children’s Hospital of Michigan and the unnamed North Carolina-based health organisation, to start patient onboarding in December 2022. This marks a key milestone in Respiri’s US commercial roll-out efforts for its wheezo device, taking it a step closer to becoming the first Australian medtech to realise reimbursement under the Centers for Medicare and Medicaid Services’ Current Procedural Terminology reimbursement codes for RPM. Management anticipates the first reimbursement claims to be processed within 45 days. We expect traction from these initial patient enrollments to set the pace for future growth momentum. Our valuation remains unchanged at A$0.24 per share.
Respiri |
First patients enrolled in the US RPM programme |
Commercialisation update |
Healthcare equipment |
8 November 2022 |
Share price performance Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
Respiri has announced that the first patients have been enrolled in its wheezo remote patient monitoring (RPM) programme in the United States. Respiri also expects the two signed US clients, Children’s Hospital of Michigan and the unnamed North Carolina-based health organisation, to start patient onboarding in December 2022. This marks a key milestone in Respiri’s US commercial roll-out efforts for its wheezo device, taking it a step closer to becoming the first Australian medtech to realise reimbursement under the Centers for Medicare and Medicaid Services’ Current Procedural Terminology reimbursement codes for RPM. Management anticipates the first reimbursement claims to be processed within 45 days. We expect traction from these initial patient enrollments to set the pace for future growth momentum. Our valuation remains unchanged at A$0.24 per share.
Year end |
Revenue (A$m) |
EBITDA* |
PBT* |
EPS* |
P/revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
21.2 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
37.1 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
5.9 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
3.7 |
123.3 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. FY23 and FY24 EPS are adjusted for new shares.
As a reminder, Respiri’s flagship wheezo platform offering (which includes the monitoring device/sensor, associated smartphone applications and heath portal) supports the monitoring and maintenance of irregular breathing patterns (wheeze) in asthma and chronic obstructive pulmonary disease (COPD) patients, both areas with a large patient population (50 million people are living with asthma or COPD in the United States, according to the company) that currently lacks adequate tracking and monitoring. Wheezo was launched in the US market in December 2021 to leverage the RPM reimbursement infrastructure in the country. The company has partnered with two telehealth providers (mTelehealth and Access Telehealth) and has signed agreements with two large US hospitals – Michigan Children’s Hospital and an unnamed hospital in North Carolina. The sales pipeline remains strong with the company pursuing over 120 qualified leads with the potential to translate into future customers.
Enrollment of the first patients in the RPM programme marks an important milestone for the company in our opinion, highlighting early acceptance from physicians/pulmonologists for the potential utility of the wheezo device for active, real-time monitoring of asthma/COPD patients. Successful reimbursement by payors (a key component of the company’s US revenue model) would also confer initial validation to Respiri’s business model in the United States. We expect feedback from the first lot of enrolled patients to lay the foundation for subsequent uptake of the product and associated services.
|
|
Research: Healthcare
Cantargia has presented new data concerning its IL1RAP-targeting antibody, nadunolimab (CAN04), which demonstrates the drug’s ability to reduce levels of tumour-promoting molecules in a pancreatic cancer (PDAC) microenvironment model. Similar reductions have been observed in PDAC and non-small cell lung cancer (NSCLC) patients treated with nadunolimab. Importantly, an IL-1β targeting antibody showed no such effect (nadunolimab blocks both IL-1α and IL-1β activation). Investors will recall the failure of Novartis’s canakinumab (an anti-IL-1β antibody) to demonstrate meaningful survival benefits in Phase III trials for the treatment of NSCLC in October 2021. In our view, the newly presented data provide encouraging differentiation for nadunolimab’s mechanism of action (complete IL-1 pathway abrogation) in oncology. Our valuation of Cantargia is unchanged at SEK7.35bn or SEK44.0 per share.
Get access to the very latest content matched to your personal investment style.