Here’s why the Respiri (ASX:RSH) share price jumped 14% today

The Respiri Ltd (ASX: RSH) share price leapt 14% to 6.5 cents in early trading this morning. This came following the announcement of a distribution and marketing deal with a United States healthcare company.

At the closing bell, Respiri shares had wiggled back down to 5.9 cents apiece, a 3.5% increase from yesterday’s closing price.

Respiri’s telehealth deal

At its core, Respiri is focused on bringing simple respiratory solutions to those living with asthma.

Its primary product, wheezo, assists in the tracking and management of asthmatic symptoms. It also has the ability to share relevant information with doctors and caregivers.

The deal driving the Respiri share price today combines the efforts of US-based remote patient monitoring (RPM) provider mTelehealth, LLC with Respiri.

The partnership entails an initial request from mTelehealth for USD$150,000 (A$208,000) worth of wheezo devices and services to be delivered as early as next month.

Up until now, wheezo products had not been sold in the US.

Respiri also predicts the RPM market will grow by more than 30% by 2026, up to US$85 billion, due to the increase in asthma and chronic diseases.

Therefore, mTelehealth has predicted US$1 million in wheezo sales over the next five years and has agreed to obtain a minimum of 1,000 units every quarter.

This marks the first deal of its kind signed for Respiri.

Respiri CEO pleased with the partnership

Commenting on the news fuelling the Respiri share price today, CEO and managing director Marjan Mikel said:

We are particularly excited about our partnership with mTelehealth, a trusted RPM partner to many healthcare delivery organisations and physicians across the United States.

Marc [Poulshock, president and CEO of mTelehealth] and his team very quickly understood what patient benefits wheezo could provide and imparted invaluable local knowhow to help us better tune our US launch strategy and leverage the existing RPM CPT reimbursement codes available to Respiri.

Poulshock said there was “definitely a need for wheezo in the US” and the company was pleased to have entered the partnership.

Respiri share price snapshot

The Respiri share price has seen a year in red, declining by around 55%.

The company has a market capitalisation of $41.2 million based on its current share price and over 720 million shares issued.

The post Here’s why the Respiri (ASX:RSH) share price jumped 14% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Respiri right now?

Before you consider Respiri, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Respiri wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s