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

The ResApp Health Ltd (ASX: RAP) share price is edging higher today after announcing an update on its prescription-only software application.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published February 10, 2021 4:26 pm AEDT

The ResApp Health Ltd (ASX: RAP) share price is climbing higher today. This comes after the company provided an update of its prescription-only software application with the United States Food and Drug Administration (FDA).

At the time of writing, shares in the digital health company are trading 1.4% higher at 6.8 cents.

What did ResApp announce?

In today's release, ResApp advised it has sent a pre-submission package to the FDA for clearance on its smartphone-based medical software application. The company also requested a meeting with the FDA to discuss how to obtain regulatory approval and any other requirements.

ResApp's latest software application uses machine-learning algorithms to detect cough sounds recorded by a smartphone's inbuilt microphone. This, in turn, will help healthcare professionals identify if a patient is suffering from lower respiratory tract illness.

The company confirmed the benefits of the medical application's technology in its SMARTCOUGH-C-2 and Breathe Easy clinical trials.

If approved, ResApp said the prescription-only software would help users make informed decisions about their healthcare.

Words from the CEO

ResApp CEO and managing director Dr Tony Keating commented:

Submitting this pre-submission package and meeting request is an important first step in our re-engagement with the FDA that will provide a valuable opportunity for the company to discuss the potential pathways for the clearance of our cough-based analysis technology for use in the US.

We expect to have a number of meetings with the agency this year to ensure that the company is well positioned and to provide any additional details that might be required. ResApp looks forward to working cooperatively with the FDA over the coming months to delineate a path forward for its offering.

About the ResApp share price

The ResApp share price has tumbled more than 70% in the past 12 months, making it one of the poorer performers on the All Ordinaries Index (ASX: XAO).

ResApp has a market capitalisation of $51.5 million based on the current share price.

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