Could this be why the Whispir (ASX:WSP) share price is up 9% today?

The technology company’s shares are surging higher amid media coverage of a potential new deal with Chemist Warehouse.

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Whispir Ltd (ASX: WSP) shares are having a bumper day on Wednesday. At the time of writing, the Whispir share price is trading 9.2% higher at $2.73.

This comes despite no official news from the communications technology company.

Why is the Whispir share price in focus?

The Whispir share price is well and truly in the green today despite the company not having released any market updates. However, an article was published last night on The Australian website that discussed Whispir and a potential partnership with Chemist Warehouse. So could this be the reason behind today’s gains?

According to The Australian, Chemist Warehouse is reportedly set to link with Whispir as it looks to roll out an e-prescription service. Following the federal government’s funding of telehealth services as a result of the pandemic, the article reported on the increasing demand for contactless medical services.

Whispir chief executive Jeromy Wells was cited by the article explaining how electronic prescriptions would work. According to Wells, prescriptions could be forwarded and fulfilled by pharmacists via Whispir’s automated SMS service. As a result, the Whispir platform could potentially manage all incoming e-prescription requests.

Mr Wells was also quoted as saying, “In terms of it being material in terms of revenue, it’s not insubstantial but it would be impolite to talk about numbers.” He did, however, go on to highlight the additional awareness such a deal could deliver for the Whispir platform.

Whilst the company has not updated the market regarding any deals with the pharmacy chain, investors are driving up the Whispir share price today regardless. Motley Fool has contacted Whispir for comment.

More on the Whispir share price

Whispir is a software-as-a-service (SaaS) communications workflow platform provider. According to the company, its industry-leading software platform allows organisations to deliver services using automated and multi-channel communication workflows. Whispir has more than 750 clients with notable customers including AGL Energy Limited (ASX: AGL), BP, ING and KPMG.

Despite a strong start to 2021, the Whispir share price is now down by around 25% this year. In late April, the company released a promising update for the third quarter highlighting annualised recurring revenue (ARR) of $50.3 million. Despite this, Whispir shares finished that day lower.

Earlier this year, Whispir also successfully completed an institutional placement. The company managed to raise $45.3 million at $3.75 per share with the intention of accelerating its growth strategy in its three key markets of Australia and New Zealand (ANZ), Asia, and North America.

Based on the current Whispir share price, the company commands a market capitalisation of around $317 million.

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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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