Currency in AUD
Last close As at 17/03/2023
AUD0.06
▲ −0.01 (−9.86%)
Market capitalisation
AUD60m
Research: Healthcare
Respiri has started patient onboarding for a major North Carolina (NC)-based healthcare organisation (the initial contract was signed in August 2022). The agreement applies to chronic obstructive pulmonary disease (COPD) patients for the full service wheezo remote patient monitoring (RPM) programme. We believe positive feedback or a strong display of utility from initial patients will generate an opportunity to accelerate wheezo’s adoption across broader healthcare groups, in line with commercialisation efforts. Our valuation is unchanged at A$0.24 per share.
Respiri |
NC rollout to expand wheezo market potential |
Commercialisation update |
Healthcare equipment |
9 January 2023 |
Share price performance Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
Respiri has started patient onboarding for a major North Carolina (NC)-based healthcare organisation (the initial contract was signed in August 2022). The agreement applies to chronic obstructive pulmonary disease (COPD) patients for the full service wheezo remote patient monitoring (RPM) programme. We believe positive feedback or a strong display of utility from initial patients will generate an opportunity to accelerate wheezo’s adoption across broader healthcare groups, in line with commercialisation efforts. Our valuation is unchanged at A$0.24 per share.
Year end |
Revenue |
EBITDA* (A$m) |
PBT* (A$m) |
EPS* |
P/revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
28.0 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
52.0 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
8.0 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
5.0 |
144 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. FY23 and FY24 EPS adjusted for new shares.
As a reminder, Respiri signed the contract with an unnamed NC-based customer focused on COPD management. The deal included partner Access Telehealth’s full-service premium model, comprising patient engagement through Remotli, its cloud-based platform. The RPM programme is eligible for reimbursement under the Centers for Medicare and Medicaid Services’ current procedural terminology reimbursement codes for RPM, with Respiri generating revenue from device sales and monthly RPM revenues per patient for reimbursement services. The Centres for Disease Control and Prevention reports 5.6% of the US population suffers from COPD (around 18.5 million people) and, despite the large patient population, there is still adequate tracking and monitoring.
We note that the NC customer is part of a larger healthcare network focused on the region, which manages over 60,000 in-patient admissions, 187,000 emergency department visits and 2,000,000 outpatient visits per year. According to Respiri, this translates to 25,000 emergency department visits and over 250,000 outpatient visits for respiratory conditions, a number of which would likely be eligible for the wheezo RPM programme. We therefore believe a strong display of clinical utility from the initial patients could create an opportunity to accelerate adoption across the broader healthcare network and expand wheezo’s market potential.
Respiri signed six commercial deals in 2022, of which at least three have begun patient onboarding. We expect Respiri to start realising first reimbursement claims in Q1 CY23. Respiri’s revenue in the United States is made up of two distinct streams: device sales, US$50–60 per unit based on device sales volumes, and monthly fees of US$10–20 per patient per month, based on the type of services subscribed for with partner Access Telehealth.
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Research: Healthcare
Following a proposed share consolidation announced in November 2022, OpGen has effected a reverse stock split in the ratio of 1:20. This comes in the wake of a Nasdaq notification received in late August 2022 granting the company a 180-day extension (ending in February 2023) to regain compliance with its listing requirements (minimum threshold price of $1 per share). Given Nasdaq’s liquidity and trading volumes, we see Opgen’s ability to maintain the listing as crucial to its effectiveness in raising capital to develop its R&D pipeline and grow its commercial portfolio. While our overall valuation remains unchanged at $67.5m, the per-share valuation increases to $23.3/share from $1.2/share, reflecting the share consolidation (2.9m shares outstanding post consolidation versus 58.0m previously).
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