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  • ResApp (RAP) reports increases in quarterly cash receipts and net cash outflows over the three months to March 31 2022
  • Company cash receipts jumped 44 per cent to $178,000 across the March quarter, with net cash outflows rising 62 per cent to $1.57 million
  • ResApp ended March with about $1.7 million in the bank but says it expects to receive a $3 million licensing fee from a R&D deal with Pfizer Australia “shortly”
  • Today’s quarterly report follows an announcement from ResApp earlier this month that it had received a $100 million cash takeover offer from Pfizer Australia
  • RAP shares up 2.27 per cent to 11.3 cents

Meditech company ResApp (RAP) has posted increases in quarterly cash receipts and net cash outflows over the three months to March 31 2022, according to its latest financial report.

The company said customer receipts grew 44 per cent to $178,000 across the March quarter compared to the $124,000 tabled in the December 2021 quarter.

ResApp’s net operating cash outflows rose 62 per cent to $1.57 million from $969,000, with lower research and development-related payments – due to the completion of its US and India COVID-19 studies – during the March quarter contributing to the result.

It ended the quarter with a cash balance of about $1.7 million.

ResApp announced earlier this month that it had received a $100 million cash takeover offer from the Australian arm of biotech giant Pfizer.

The two entities have also struck a six-month research and development licensing deal to collaborate on products in the field of COVID-19.

As part of the agreement, Pfizer will pay ResApp a $3 million licensing fee and up to $1 million in milestone payments.

ResApp said it expected to received the $3 million fee shortly.

Managing Director and CEO Dr Tony Keating said the Pfizer takeover offer recognised the years of work ResApp had put into building its smartphone-based respiratory diagnostic tech.

“It represents a great validation of our technology and the benefits it brings to patients and clinicians,” he said.

Dr Keating said the company had achieved “positive” results in the March quarter from its COVID-19 program involving clinical trials of the respiratory diagnostic technology.

“The ability to use a smartphone-based screening test to rapidly rule out COVID-19 infection in large numbers of people would provide many benefits,” he said.

“By reducing the number of rapid antigen or PCR tests required, we may be able to substantially reduce costs, increase reach (identify more positive infections than before) and reduce the environmental impact of traditional testing.”

ResApp said the next steps for the company were to continue to engage with the US Food and Drug Administration to seek approvals for products in its development pipeline.

It was also putting together a scheme booklet for the potential Pfizer takeover to be released to shareholders in mid-May. A scheme meeting for the deal was currently slated for mid-June.

RAP shares were up 2.27 per cent to 11.3 cents at 12:55 pm AEST.

RAP by the numbers
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