Australia Markets close in 2 hrs 29 mins

ResApp share price races 13% higher on telehealth deal

James Mickleboro
healthcare shares concept

In morning trade the ResApp Health Ltd (ASX: RAP) share price is storming higher.

At the time of writing the digital health company’s shares are up 13% to 30.5 cents.

Why is the ResApp share price racing higher?

Investors have been buying ResApp’s shares following an update on its ResAppDx-EU product.

ResAppDx-EU is a software application used by clinicians to diagnose the most common respiratory diseases. This software uses machine learning algorithms to analyse a patient’s cough sounds and diagnose diseases.

According to today’s update, ResApp and Australia’s leading telehealth software platform, Coviu, have entered into a non-binding memorandum of understanding (MOU) to integrate ResAppDx-EU into Coviu’s browser-based telehealth platform.

This integration will see ResAppDx-EU become available to over 5,500 clinicians who currently use the Coviu platform. Clinicians will then have the ability to accurately diagnose respiratory disease in a telehealth setting.

The Coviu telehealth platform, a spinout from CSIRO’s Data61, makes it easy for healthcare providers to offer their services directly to patients via video consultation. It also powers the Australian government-funded healthdirect Video Call.

ResApp’s CEO and Managing Director, Tony Keating, was very excited with the MOU.

He said: “We are excited to be working with Coviu, which has developed a technologically-advanced telehealth platform with one of the largest active deployments in Australia. This is a great opportunity to integrate ResApp’s solution into a leading telehealth provider’s platform and demonstrate the value we deliver in the telehealth setting.”

This sentiment was echoed by Coviu’s CEO, Dr Silvia Pfeiffer.

Dr Pfeiffer said: “At Coviu we are committed to providing the best software for video visits so that doctors can bring the same level of outstanding care that they provide in face-to-face consultations to online consultations. We look forward to being able to provide ResApp’s respiratory diagnostic solutions as a tool for clinicians who use our platform to accurately diagnose and care for patients with respiratory conditions.”

What’s next?

The two parties will work together under a joint development agreement for the next four months to integrate ResAppDx-EU into Coviu’s browser-based telehealth platform.

They will also devise a workflow for directing patients and clinicians towards the use of ResAppDx-EU in appropriate circumstances and prepare a list of actions for clinicians to take after reviewing the test results.

Before the conclusion of the project, ResApp and Coviu will enter into negotiations on the cost model of using ResAppDx-EU on the Coviu platform within Australia.

The post ResApp share price races 13% higher on telehealth deal appeared first on Motley Fool Australia.

I've been impressed with ResApp's recent develops and feel it could be worth keeping an eye on its progress. However, for now, I would sooner buy one of these quality growth shares.

NEW. Five Cheap and Good Stocks to Buy in 2020….

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019