Currency in AUD
Last close As at 17/03/2023
AUD0.06
▲ −0.01 (−9.86%)
Market capitalisation
AUD60m
Research: Healthcare
Respiri has released its Q223 quarterly activity report and provided a business update for the quarter. The second quarter was characterised by improving commercial traction for Respiri, with the company signing three new contracts for wheezo (including Minnesota Lung Center and Arkansas Heart Hospital), taking the total client count to six at the end of the period. Respiri’s wearable device Sorfe also continues to make progress with clinical studies anticipated to commence by March/April 2023. The recent announcement of a A$1.5m capital raise (with the option to increase the offering size based on investors interest) is expected to extend the company’s cash runway to Q423, based on current burn rates. With patient onboarding ongoing at multiple sites, we expect initial cash inflows from device sales and RPM services in the coming months, which should help scale up commercial activities and likely expand the cash runway further.
Respiri |
Trading recap highlights continued market traction |
Quarterly activities update |
Healthcare equipment |
26 January 2023 |
Share price performance Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
Respiri has released its Q223 quarterly activity report and provided a business update for the quarter. The second quarter was characterised by improving commercial traction for Respiri, with the company signing three new contracts for wheezo (including Minnesota Lung Center and Arkansas Heart Hospital), taking the total client count to six at the end of the period. Respiri’s wearable device Sorfe also continues to make progress with clinical studies anticipated to commence by March/April 2023. The recent announcement of a A$1.5m capital raise (with the option to increase the offering size based on investors interest) is expected to extend the company’s cash runway to Q423, based on current burn rates. With patient onboarding ongoing at multiple sites, we expect initial cash inflows from device sales and RPM services in the coming months, which should help scale up commercial activities and likely expand the cash runway further.
Year end |
Revenue (A$m) |
EBITDA* |
PBT* |
EPS* |
P/revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
24.3 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
47.2 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
7.9 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
4.9 |
144 |
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.
During the quarter, Respiri continued to expand its commercial footprint by signing three new customer contracts, including a major deal with the Minnesota Lung Center (a leading private pulmonary practice based in Minneapolis focused on lung diseases, respiratory therapies and diagnostics). The company also announced a deal with Arkansas Heart Hospital (one of the largest privately held cardiovascular disease focused hospitals in the US). These wins are expected to expand wheezo’s customer base and provide access to a broader referral network, with the potential to enhance product awareness and engage key stakeholders in the healthcare community. Respiri also reports a strong sales pipeline, which we believe should translate to further client conversions in the coming months.
In terms of the R&D pipeline, Respiri continues to make progress in developing its wearable device, Sorfe, which is being designed as a continuous monitoring device to capture physiological data to assess asthma/COPD symptoms. Sorfe will be focused on tracking and monitoring nocturnal asthma symptoms and hospital transition care (for recently discharged patients) and should help bolster the wheezo portfolio, if successfully developed and commercialised.
Respiri has focused on cost-optimisation to support its US roll-out plans, which has helped preserve cash (operating cash outflow of A$1.2m in Q223). The period end net cash balance stood at A$0.2m, with further support expected from the recent A$1.5m fund raise through a share purchase plan, expected to close on 10 February. At current burn rates, this financing should fund operations into Q423, but we expect cash inflows from the currently onboarded patients in coming months, which should provide additional operating headroom.
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Research: TMT
discoverIE’s Q323 trading update confirmed continued good momentum, with FY23 underlying earnings tracking ahead of board expectations. The company has completed the previously announced acquisition of Magnasphere, adding a high margin sensor business to the Sensing & Connectivity division. We have upgraded our forecasts to reflect better trading and the accretive acquisition and note that gearing remains below the company’s target range, providing headroom for further M&A.
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