“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 17/03/2023
AUD0.06
▲ −0.01 (−9.86%)
Market capitalisation
AUD60m
Research: Healthcare
Respiri has signed its sixth contract for remote monitoring – Hand Family Healthcare, a New Mexico-based primary care practice, has signed up for the full-service wheezo remote patient monitoring (RPM) programme. System integration formalities have been completed and the first patients (with either asthma or chronic obstructive pulmonary disease) are expected to join the programme shortly. The deal, signed in collaboration with Access Telehealth, indicates growing traction and acceptance of wheezo among healthcare practitioners, with feedback from the first patients (expected in early CY23) potentially opening the door for enhanced market access.
Respiri |
Sixth in spate of new client wins |
19 December 2022 |
Share price performance
Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||
Respiri has signed its sixth contract for remote monitoring – Hand Family Healthcare, a New Mexico-based primary care practice, has signed up for the full-service wheezo remote patient monitoring (RPM) programme. System integration formalities have been completed and the first patients (with either asthma or chronic obstructive pulmonary disease) are expected to join the programme shortly. The deal, signed in collaboration with Access Telehealth, indicates growing traction and acceptance of wheezo among healthcare practitioners, with feedback from the first patients (expected in early CY23) potentially opening the door for enhanced market access.
Commercialisation update |
Healthcare equipment |
Year end |
Revenue |
EBITDA* (A$m) |
PBT* |
EPS* |
P/revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
23.5 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
41.1 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
6.6 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
4.1 |
137 |
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.
Hand Family Healthcare is a Clovis, New Mexico-based family practice offering a full suite of medical services. It caters for a large rural population that lacks easy proximity to large specialty hospitals, making primary care facilities critically important to healthcare management. We see wheezo, with its ease of use and RPM feature, as well suited for such centres and their patient populations.
As with previous deals, this new contract has been signed for the full-service RPM solution (including patient engagement through Access Telehealth’s cloud-based platform, Remotli, under the supervision of the Hand Family Healthcare clinical team). Respiri will generate revenue from both device sales and monthly fees for RPM. The RPM programme is eligible for reimbursement under the Centers for Medicare and Medicaid Services’ procedural terminology reimbursement codes for RPM (with a typical claim processing time of two months).
wheezo was launched in the US in December 2021 to monetise its potential and leverage the RPM reimbursement infrastructure in the country. Respiri has partnered with two telehealth providers (mTelehealth and Access Telehealth), has six signed client contracts (including Hand Family Healthcare) across six US states and has a robust pipeline of around 120 qualified leads. Management hopes to win more such contracts across primary healthcare practices and larger hospital systems. As patient engagement grows with an increasing number of clients, we expect patient feedback to accelerate sales momentum in the US.
|
|
Research: Healthcare
Shield Therapeutics has announced a co-commercialisation deal for Accrufer in the US with Nasdaq-listed Viatris, which will involve an expanded salesforce and a 55%/45% revenue/cost split between the two companies. Although this is a clear departure from Shield’s stated self-commercialisation strategy in the US, we see merits in the deal, with the combined resources allowing Shield a faster sales ramp-up and quicker time to profitability. The decision coincides with a US$18.5m (£15.1m) equity raise and an additional $10m in funding from its largest shareholder, AOP Heath. We estimate that this raise should be sufficient to take the company to break-even, provided revenue targets are achieved. We have updated our estimates to incorporate the deal economics and fund-raise. Our overall valuation increases to £403.4m (versus £377.0m previously), but our implied per-share valuation declines to 79p/share (versus 146p/share previously) due to the higher post-equity raise share count.
Get access to the very latest content matched to your personal investment style.
