ResApp share price races 13% higher on telehealth deal

The ResApp Health Ltd (ASX:RAP) share price is racing higher on Thursday following the announcement of a promising deal with Coviu…

| More on:
asx healthcare shares

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Gainers

health workers shake hands and congratulate each other on good news
Share Gainers

This ASX All Ordindaries healthcare share is ripping 17% higher amid a new contract win

Investors seem to like the contract win from this healthcare player.

Read more »

A boy leaps and flaps his arms as he tries to fly with some birds on the shoreline of the beach.
Share Gainers

5 best ASX All Ordinaries shares in June

Why did these ASX shares fly while the All Ords dropped?

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Share Gainers

Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher

These ASX shares are ending the week strongly...

Read more »

Three rockets heading to space
Share Gainers

These 3 ASX All Ords shares are delivering double-digit gains on Friday

These stocks have each surged more than 20% today.

Read more »

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.

Why is the Northern Star share price more green than gold on Friday?

It's proving a good day so far for the gold miner, despite the price of the yellow metal falling.

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Share Gainers

Why is the Mesoblast share price leaping 19% today?

Mesoblast reverses course today – for now, anyway.

Read more »

a group of young people dance together with their hands in the air, moving to music.
Share Gainers

What’s propelling the MoneyMe share price 28% higher today?

Investors have rewarded the company handsomely today.

Read more »

a man and a woman sitting in a technology related work environment high five each other while the man wears headphones around his heck and the woman sits in front of a laptop.
Share Gainers

Domestic bliss: Praemium share price surges 18% after international business split

The tech company will now focus on the domestic market.

Read more »