Why the ResApp (ASX:RAP) share price is flying 25% higher today

Respiratory illnesses have come under increasing scrutiny during the pandemic.

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The ResApp Health Ltd (ASX: RAP) share price is flying higher today, up 25%.

The company – which provides health care solutions for respiratory diseases via smartphone applications – emerged from Monday’s trading halt this morning.

And investors appear to be driving the ResApp share price higher following 2 separate market announcements. We take a look at those below.

What did ResApp announce?

ResApp’s share price is soaring after the ASX healthcare share reported it has signed a software licence agreement with Indonesian-based telehealth company Alodokter.

Under the agreement, Alodokter, the largest provider of telehealth services in Indonesia, will integrate ResAppDx in its chat and telehealth services.

Alodokter plans to launch ResAppDx, a smartphone-based acute respiratory diagnostic test, on its platform before 1 December. According to the announcement, that platform connects more than 50,000 doctors and 1,500 hospitals and clinics with millions of Indonesian patients.

Commenting on the software licence agreement, Alodokter’s CEO Nathanael Faibis said, “ResApp’s technology will allow us to serve more patients in a remote, telehealth setting and effectively diagnose and treat their respiratory disease.”

Faibis added that his company was “very impressed with the simplicity, ease of use and accuracy of ResAppDx”.

ResApp’s CEO Tony Keating said, “This partnership will create value for ResApp, Alodokter and our collective shareholders and stakeholders.”

The agreement remains subject to approval from Indonesian regulators. ResApp said it expects to obtain that approval this quarter.

What was ResApp’s other news?

The ResApp share price also looks to be getting a lift from a separate licencing announcement this morning.

The company reported it has signed a commercial licence agreement with Medgate AG to use ResAppDx on Medgate’s telehealth platform in Europe and the Philippines.

Medgate provides telehealth services and operates the largest telemedical centre run by doctors in Europe.

Keating commented:

Medgate is a long-standing, global leader in telehealth and we are pleased to enter into a commercial licence agreement that provides ResAppDx for the benefit of their clinicians and patients.

We are delighted to secure our first commercial telehealth license agreement in Europe and receive a positive endorsement of ResAppDx by such a successful leader in the telehealth field.

The agreement is for an initial 1-year term.

ResApp share price snapshot

Despite today’s surge, the ResApp share price remains down 63% over the past 12 months, a period which has seen the All Ordinaries Index (ASX: XAO) gain 26%.

Year-to-date, ResApp’s share price has continued to struggle, down 40%.

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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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