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- ResApp Health (RAP) has released its financial and operational updates for the half year to December 31 2019
- The digital health solutions company reported a net loss of over $3.8 million, which is a higher loss than the previous corresponding period
- ResApp ended the half year with net assets of $4.7 million compared to $7.6 million on June 30 that same year
- While it suffered some losses, it ticked a number of wins for its health solutions
- ResApp’s smartphone tester for respiratory disease was granted a number of approvals
- It also entered an agreement to integrate its smartphone product with a leading telehealth platform
- Additionally, it received approval to test its chronic obstructive pulmonary disease smartphone app where the company will recruit up to 200 Indigenous Australians for the study
- ResApp has ended the day 5.88 per cent down, with shares trading for 16 cents each
ResApp Health (RAP) is down nearly six per cent after releasing its results for the half year to December 31 2019.
The digital health solutions company reported a net loss of $3,820,394 which is almost $500,000 more than the loss reported in the previous corresponding period.
ResApp had total net assets of $4.7 million at the end of the period compared to $7.6 million on June 30 2019.
General and administrative costs were over $1.5 million compared to $822,357 in the previous corresponding period.
While the company suffered greater losses, it had a transformational period for its operations.
Regulatory approvals
ResApp received CE Mark certification for ResAppDx-EU in August last year which saw its share price sky rocket over 40 per cent. ResAppDx-EU is a world-first smartphone diagnostic tester for respiratory disease in adults and children. Receiving this approval indicates the product meets all the requirements and regulations for sale throughout Europe.
Further good news came in October when the smartphone product received Australian Therapeutic Goods Administration (TGA) approval as a Class IIa medical device for children. It wasn’t until February 21 2020 that ResAppDx-EU was granted TGA approval for adult use.
Clinical studies
In September last year, ResApp released positive results for its at-home sleep apnoea study showing that its algorithms, which measure a person’s breathing and snoring sounds, were able to accurately identify obstructive sleep apnoea (OSA).
In December, it announced receiving ethics approval from the Western Australian Aboriginal Health Ethics Committee for a study of its chronic obstructive pulmonary disease (COPD) screening smartphone app.
The study will recruit up to 200 Indigenous Australians for six months at the Geraldton Regional Aboriginal Medical Service.
In November, the company granted Sanofi, a biopharmaceutical company, a licence to expand its smartphone application for respiratory diseases.
Under the agreement, ResApp gave Sanofi the option to acquire exclusive rights to develop and commercialise a respiratory self-assessment application for consumers. It has until March 7 2020 to exercise the option.
Another milestone came when ResApp entered an agreement with Coviu, Australia’s leading telehealth software platform, to integrate ResAppDx-EU into Coviu’s telehealth platform. This will become available to over 5500 clinicians.
Corporate review
In December, ResApp received $1,798,086 million from its Research and Development (R&D) tax incentive claim for the 2019 financial year.
Subsequent events
OnFebruary 18 2020, ResApp completed testing of handheld and wearable prototype devices from its development partners, Avanti Med and OSI Electronics.
This completion satisfies the first of three milestones for device development. The company will pay $500,000 for each device and has chosen to pay in shares.
On February 21, ResApp received commitments to raise $5 million through a placement. On the 26th, the company received the funds which will be used to accelerate European commercialisation and for general working capital.
ResApp has ended the day 5.88 per cent down, with shares trading for 16 cents each.
