Here's why Respiri (ASX:RSH) share price is up 10% today

Shareholders might need to catch their breath on this news…

The Respiri Ltd (ASX: RSH) share price is racing higher today after the company announced the addition of another pharmacy network for the sale of its wheezo product.

Upon the commencement of trade this morning, shares in Respiri increased by as much as 24% to 8.7 cents a share. However, the share price has since pulled back from its intraday high.

At the time of writing, the Respiri share price is fetching 7.7 cents, up 10% for yesterday's close.

man pointing up at a rising red line which represents a growing share price

Image source: Getty Images

Sigma Healthcare to stock wheezo

Investors are buying up shares in the respiratory health management company Respiri.

According to the release, the company's asthma management device wheezo will commence sales across pharmacies within the Sigma Healthcare Ltd (ASX: SIG) network Australia-wide.

Sigma's network includes over 570 pharmacies, across Amcal+, Chemist King, Discount Drug Stores, Guardian, Pharmasave, and Wholelife.

Shareholders would be pleased with today's resultant Respiri share price movement. CEO and Managing Director of Respiri, Mr Marjan Mikel stated:

Sigma is a well-known and trusted pharmacy business whose brands have a long history in the Australian market, that patients frequent when seeking healthcare management advice. We look forward to a long and mutually beneficial partnership with Sigma's retail brands that will deliver better health outcomes for patients with asthma.

The company also noted that it is in active discussions with other pharmacy groups. This 'pharmacy pipeline' represents a footprint of over 2,500 stores across Australia.

Respiri gave fair warning that it will provide further announcements once discussions are finalised.

The Respiri share price still struggling

Despite being busy adding several pharmacy brands for wheezo distribution, the Respiri share price is in the deep red year-to-date.

Since the start of the year, the company's shares have fallen 38%. This might be due to investors being turned off the growth in losses.

At the end of 2019, the company made a $6.79 million loss. Unfortunately for shareholders, this loss increased to $12.23 million for the year ending December 2020.  

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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