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Currency in AUD
Last close As at 09/06/2023
AUD0.04
— 0.00 (−5.26%)
Market capitalisation
AUD30m
Respiri is an Australia-based medical device and SaaS company focused on respiratory health management through its integrated wheezo platform. Its technology records data such as wheeze rates, breath recordings and other environmental factors and medication usage. Wheezo was launched in the US in December 2021.
Despite the relatively large target patient population (asthma and chronic obstructive pulmonary disease), the key consideration for Respiri’s US push is the established reimbursement infrastructure. The Centers for Medicare and Medicaid Services has established CPT codes for RPM reimbursement coverage. With key technology patents, two telehealth partners and reimbursement arrangements in place, Respiri is well positioned and has a first-mover advantage.
Managing Director - Head of Content, Healthcare
Marjan Mikel
CEO
Nicholas Smedley
Chairman
William Sigsbee
Chief commercial officer
Forecast net cash (A$m)
0.2
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (20.0) | (44.6) | 0.0 |
| Relative | (18.0) | (43.0) | 0.8 |
| 52 week high/low | A$0.1/A$0.0 |
Respiri’s recent investor presentation recapped management’s strategic rationale for and the merits of the company’s proposed acquisition of Access Managed Services, its US remote patient monitoring (RPM) and chronic care management partner. We maintain that the acquisition will provide further impetus to Respiri’s US commercialisation plans for wheezo, diversify the company’s operations and expand the addressable market. Importantly, the post-acquisition RPM monthly annuity will rise to US$70–100 from US$10–20 per patient, allowing break-even to be reached at 9,000 patients (by end-CY24) versus 30,000 patients previously, a target we see as more achievable. The decision to pay out the US$3m deal consideration over three milestone-linked tranches is also sound, tempering the financing risk, in our opinion. We will present our revised estimates and valuation following the deal closure, which we expect by early July 2023.
| Y/E Jun | Revenue (A$m) | EBITDA (A$m) | PBT (A$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 1.4 | (8.4) | (8.5) | (1.22) | N/A | N/A |
| 2022A | 0.8 | (6.2) | (6.3) | (0.87) | N/A | N/A |
| 2023E | 1.7 | (4.2) | (4.2) | (0.51) | N/A | N/A |
| 2024E | 5.9 | (1.1) | (1.1) | (0.13) | N/A | N/A |
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