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Why the ResApp (ASX:RAP) share price is racing higher today

increase in asx medical software share price represented by doctor making excited hands up gesture
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The ResApp Health Ltd (ASX: RAP) share price soared higher today following the release of a positive market announcement.

During market open, shares in the digital health company surged to an intra-day high of 12 cents. However, a portion of those gains have been given back, with the ResApp share price closeing at 11.5 cents, up 9.5%.

Let’s see what news ResApp updated investors with.

A new software app for Android

ResApp advised that it has now launched its software application ResAppDx on select Android devices.

The smartphone-based acute respiratory diagnostic test has been developed for use by clinics for a range of health issues. These include lower respiratory tract disease, croup, pneumonia, asthma/reactive airway disease exacerbation, COPD exacerbation and bronchiolitis.

It is estimated that there are more than 2.5 billion active Android devices worldwide, thus expanding ResApp’s addressable market. Android users in Australia and Europe number more than 11 million and 450 million, respectively.

The company said the launch followed extensive testing and met high standards identifying respiratory diseases. ResApp will work with its existing partnerships with Coviu and Phenix Health.

The company will now focus its efforts on launching SleepCheck for Android. This will allow users to assess their risk of sleep apnoea on almost all smartphone devices. It is expected the rollout will be in the coming months.

What did management say?

ResApp CEO and managing director Tony Keating said launching ResAppDx on select Android devices was a major achievement for ResApp:

The company has undertaken extensive testing to ensure our offering continues to meet the high standards set by regulative bodies and provides clinicians with a best in class solution to test for respiratory disease during telehealth consultations.

ResApp has established partnerships in the Australian telehealth sector through both Coviu and Phenix Healthcare and we will now pursue the launch of ResAppDx for Android across their respective platforms. Further, we will continue to pursue similar partnerships in Europe, which have the potential to give us access to a much larger and established telehealth market.

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Motley Fool contributor Aaron Teboneras 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.

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