The ResApp Health Ltd (ASX: RAP) share price is surging higher after releasing its second announcement in as many days. You can read about the first announcement here.
At the time of writing, the digital health company's shares are up 19% to 6.9 cents.
What did ResApp announce?
This morning ResApp announced that it has secured a one-year, non-exclusive licensing agreement with the Japanese subsidiary of global biopharmaceutical company AstraZeneca. The agreement will see ResApp license its cough counting technology for use in a program to support asthma patients in Japan.
According to the release, under the agreement, ResApp's cough counting technology will be integrated into AstraZeneca's direct-to-consumer asthma management smartphone application. This will then be used to assist patients in monitoring symptoms in the home setting and support them in managing their asthma.
The release notes that AstraZeneca's asthma monitoring application is currently under development and is expected to launch in the coming months. In the meantime, ResApp will work with AstraZeneca on its integration into the smartphone application. This includes refining it to the pharmaceutical giant's specifications for use in the Japanese market.
Management notes that this agreement will be the first time ResApp's cough counting technology is being used outside of a clinical trial setting. It believes this highlights its broad applicability.
Furthermore, as it is the second agreement with AstraZeneca, it feel it provides further validation from an industry-leading pharmaceutical company.
What are the financial terms?
The release explains that AstraZeneca will pay an annual licence fee to ResApp for each patient provided with AstraZeneca's asthma management smartphone application.
However, while sales of ResApp's cough counting technology continue to grow, management does not expect this agreement to have a material impact on the company's operating results.
ResApp's Managing Director and CEO, Dr Tony Keating, commented: "With its Asthma Monitoring App, AstraZeneca is seeking to empower and support patients to help them take control of their asthma. Over one million people in Japan live with asthma and AstraZeneca's app aims to help patients better manage their condition and adhere to their management plans, leading to a better quality of life. We are proud to be an integral part of this initiative and look forward to working with AstraZeneca on the integration process and launch of this important patient support program."
