The Dorsavi Ltd (ASX: DVL) share price shot 276.92% higher on Thursday following the announcement of a strategic partnership with QBE Insurance Group Ltd (ASX: QBE).
About Dorsavi
Dorsavi is a biotechnology company that develops innovative technologies that offer human body motion analysis for use in clinical applications, elite sports, and occupational health and safety.
Why the Dorsavi share price shoot higher?
Dorsavi announced yesterday that is has entered an agreement with QBE Australia to provide its wearable technology to QBE customers. The goal is to provide data insights that could help in reducing movement risk, injury claims and workers' compensation premiums.
QBE will allocate $250,000 over 12 months to allow new and existing customers to access Dorsavi's equipment. QBE customers will be able to access both ViSafe and myVisafe technologies.
QBE Australia General Manager People Risk, Rob Kosova, stated; "safe work Australia estimates that workplace injury and disease costs around 4% of GDP." Additionally, he stated that over one third of these cases are due to body stressing or manual handling. The executive also stated that "partnering with Dorsavi is one way we can assist more customers prevent these injuries from happening."
The technology to be provided by Dorsavi will include on body sensors that will be used in real time and real work environments. These sensors will measure movement and muscle activity, quantify movement risk and guide decision making on risk mitigating strategies.
CEO of Dorsavi, Dr Andrew Rochi, said;
"We are very excited to be working with QBE Australia to provide their customers with access to cutting edge technology and to profile risk more accurately. One of the goals for insurers is to be able to pro-actively manage risk and have remote visibility on where their potential risks are, allowing insurers and corporate groups to mitigate these risks and prove solutions before they are implemented. We look forward to adding value to the QBE Australia business and to their clients' businesses."
About the Dorsavi share price
Dorsavi released a business update and cash flow report in April for the March quarter. The company's cash balance was down to $1.92 million compared to $2.56 million at 31 December 2019. Net cash flow from operations was $870,000, however, the negative reduction in cashflow was 41% lower than the prior corresponding period. For the first 3 quarters of the 2020 financial year, recurring revenue was $1.16 million. This was a 22% increase on the prior corresponding period.
The business anticipated a challenging period as a result of the coronavirus with many clients of Dorsavi's technology requesting a pause in their subscriptions. All staff agreed to a pay cut of approximately 30% until the end of May 2020 and the company slashed operating expenses by 20% in order to optimise cash reserves.
The Dorsavi share price is up 512.5% from its 52 week low and is currently up 63.3% since the beginning of the year. The Dorsavi share price is down 2% since this time last year.
