“Edison’s accessible and high-quality research gives us the opportunity to communicate an independent perspective of Tyman to a wide variety of potential stakeholders.”
Currency in AUD
Last close As at 24/03/2023
AUD0.06
— 0.00 (−1.69%)
Market capitalisation
AUD50m
Research: Healthcare
Respiri has announced a A$1.5m capital raise through a security purchase plan (SPP) to existing shareholders (up to 30m shares to be issued at A$0.05/share). We note that the SPP is fully underwritten with the new shares expected to enter circulation on 9 February 2023. We expect this cash injection to further support Respiri’s commercialization plans in the US, which have resulted in notable client wins over the past quarter. Six new accounts were signed in H2 CY22 and, most recently, the Arkansas Heart Hospital (AHH; deal signed in late November) commenced patient enrolment in the wheezo programme for cardiovascular patients, suffering from chronic obstructive pulmonary disease (COPD). We expect initial patient feedback (first data readout anticipated in early 2023) and remote patient monitoring (RPM) reimbursement to underpin Respiri’s longer-term growth potential.
Respiri |
New funding to support commercial traction |
Funding update |
Healthcare equipment |
3 January 2023 |
Share price performance
Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||
Respiri has announced a A$1.5m capital raise through a security purchase plan (SPP) to existing shareholders (up to 30m shares to be issued at A$0.05/share). We note that the SPP is fully underwritten with the new shares expected to enter circulation on 9 February 2023. We expect this cash injection to further support Respiri’s commercialization plans in the US, which have resulted in notable client wins over the past quarter. Six new accounts were signed in H2 CY22 and, most recently, the Arkansas Heart Hospital (AHH; deal signed in late November) commenced patient enrolment in the wheezo programme for cardiovascular patients, suffering from chronic obstructive pulmonary disease (COPD). We expect initial patient feedback (first data readout anticipated in early 2023) and remote patient monitoring (RPM) reimbursement to underpin Respiri’s longer-term growth potential.
Year |
Revenue |
EBITDA* |
PBT* |
EPS* |
P/Revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
26.4 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
46.2 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
7.4 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
4.6 |
153.3 |
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.
Eligible shareholders, irrespective of the size of current shareholding, will be able to subscribe to the equity issue by investing a minimum of A$1,000 (20k new shares) and a maximum of A$30,000 (600k new shares) in the issue. The offer, which is fully underwritten, will be open to qualifying shareholders from 30 December 2022 to 27 January 2023. The issue price has been fixed at A$0.05/share but is conditional on Respiri’s share price reaching A$0.05 in the 30 days before the issue date of 7 February 2023. In the event the A$0.05 cut-off is not met (Respiri recorded a maximum trading price of A$0.047 in December 2022), the issue price will be the maximum share price in the last 30 days prior to the issue. The additional capital raised will be utilized to fund Respiri’s commercialization plans in the US and meet working capital requirements.
H2 CY22 was a rewarding period for Respiri in terms of its commercialization efforts for wheezo, with the company signing six commercial agreements for the wheezo RPM programme across six different US states. Patient onboarding has commenced across multiple sites, the latest being AHH, one of the largest privately held cardiovascular disease (CVD) focused hospitals in the US. The AHH contract includes the full suite of RPM services, including Access Telehealth’s platform Remotli, remote monitoring and patient engagement. The programme has been selected by AHH as an add-on to the current standard of care for CVD patients who also suffer from COPD. The wheezo RPM programme aims to be a lifelong practice for patients, making it a suitable contributor to AHH’s healthcare setup. The programme is eligible for reimbursement under the Centers for Medicare and Medicaid Services’ current procedural terminology reimbursement codes for RPM. Respiri will generate revenue from device sales as well as monthly RPM revenues per patient for reimbursement services.
|
|
Research: Industrials
The interim results confirm a robust period for DWF Group. The growth strategy remains and the recent acquisition of Whitelaw Twining in Canada confirms management’s intention to build a global brand. DWF is trading on a 7.0x P/E, which suggests c 45% upside to the lower end of its historical range. It also trades at a material discount to peers and offers a 7.6% dividend yield.
Get access to the very latest content matched to your personal investment style.
