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.”
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.
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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.