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Market capitalisation
AUD37m
Research: Healthcare
Respiri continues to expand its commercial footprint in the United States with the signing of another client account, with Minnesota Lung Center (MLC), for an initial three-month pilot study assessing the utility of its wheezo device in a remote patient monitoring (RPM) setting. The pilot study will recruit and monitor 20 patients with asthma and chronic obstructive pulmonary disease over three months, and, if successful, should result in a broader rollout. The deal is the third signed by Respiri in collaboration with Access Telehealth and is especially meaningful given MLC’s core focus on respiratory diseases. As a reminder, Respiri recently announced the first patient enrolment in its wheezo RPM programme in the US, which is eligible for reimbursement under the Centers for Medicare and Medicaid Services’s Current Procedural Terminology reimbursement codes for RPM. We expect feedback from these initial pilot studies (anticipated in Q1 CY23) as crucial to set the path for further commercial progress for wheezo. Our valuation remains unchanged at A$0.24 per share.
Respiri |
Wheezo bags third client win in the US |
Commercialisation update |
Healthcare equipment |
18 November 2022 |
Share price performance Business description
Analysts
Respiri is a research client of Edison Investment Research Limited |
Respiri continues to expand its commercial footprint in the United States with the signing of another client account, with Minnesota Lung Center (MLC), for an initial three-month pilot study assessing the utility of its wheezo device in a remote patient monitoring (RPM) setting. The pilot study will recruit and monitor 20 patients with asthma and chronic obstructive pulmonary disease over three months, and, if successful, should result in a broader rollout. The deal is the third signed by Respiri in collaboration with Access Telehealth and is especially meaningful given MLC’s core focus on respiratory diseases. As a reminder, Respiri recently announced the first patient enrolment in its wheezo RPM programme in the US, which is eligible for reimbursement under the Centers for Medicare and Medicaid Services’s Current Procedural Terminology reimbursement codes for RPM. We expect feedback from these initial pilot studies (anticipated in Q1 CY23) as crucial to set the path for further commercial progress for wheezo. Our valuation remains unchanged at A$0.24 per share.
Year end |
Revenue |
EBITDA* |
PBT* |
EPS |
P/Revenue |
P/E |
06/21 |
1.4 |
(8.4) |
(8.5) |
(1.22) |
21.2 |
N/A |
06/22 |
0.8 |
(6.2) |
(6.3) |
(0.87) |
37.1 |
N/A |
06/23e |
5.0 |
(2.3) |
(2.3) |
(0.29) |
5.9 |
N/A |
06/24e |
8.1 |
0.4 |
0.4 |
0.03 |
3.7 |
123.3 |
Note: *EBITDA, PBT & EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. FY23 & FY24 EPS adjusted for new shares.
MLC is a leading private pulmonary practice based in Minneapolis focused on lung diseases, respiratory therapies and diagnostics. Notably, the centre employs nine pulmonologists (a general hospital would typically have two to three), which we believe provides Respiri with a greater opportunity to broaden awareness and showcase the utility of its flagship wheezo device to relevant stakeholders in the healthcare community.
The contract with MLC was secured by Respiri’s US telehealth partner Access Telehealth for its full-service premium model (including patient engagement through its cloud-based platform, Remotli). We note that the wheezo health portal (which records data such as wheeze rates, breath recordings and other triggering factors such as pollution, pollen and medication usage) is already integrated with the Remotli platform (following the development of an application programming interface by Respiri earlier this year) which should allow the pilot study to be initiated promptly. The three-month pilot period should also permit the RPM programme to integrate with MLC’s systems and can potentially lead to a broader roll-out, should initial data be encouraging.
As a reminder, wheezo was launched in the US in December 2021 to leverage the RPM reimbursement infrastructure in the country. The company has partnered with two telehealth providers (mTelehealth and Access Telehealth), with three client contracts currently signed (including MLC) and a strong sales pipeline (c 120 qualified leads). We expect feedback from the first group of enrolled patients to chart the growth trajectory for the company in the US.
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Research: Healthcare
Sequana Medical reported positive top-line results from its SAHARA Phase IIa study of DSR 1.0, involving 10 evaluable patients with diuretic-resistant heart failure. Results from these patients, who had completed the 16-week follow-up period (the second phase of the study, see our recent outlook note for details on study phases and design) following intensive DSR therapy, were largely consistent with the interim data reported in July. These patients reported a mean 33% reduction in NT-proBNP at this time point versus baseline (indicating improved cardio-renal status) and stable renal function (no significant change in eGFR versus baseline). Importantly, the need for loop diuretics medication was substantially reduced for many (at least six to 15) months following the first phase (intensive DSR therapy) of SAHARA, with nine out of 10 patients having had a reduction of more than 90% of their required dosing. Sequana is now advancing its second-generation DSR 2.0 product, designed to provide improved therapeutic and safety profiles and a longer dwell time. It has successfully dosed the first patient with DSR 2.0 in the Canadian Phase I study (YUKON), and aims to start the multi-centre randomised US MOJAVE Phase I/IIa study in DSR 2.0 in H123.
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