The ResApp Health Ltd (ASX: RAP) share price is on the move again today following yesterday's meteoric rise. The digital health company provided another positive release to the ASX today.
At the time of writing, ResApp shares are fetching for 9.3 cents apiece, up 4.49%. It's worth noting that during early morning trade, its shares reached an intraday high of 10.2 cents.
ResApp secures rebate on COVID-19 study
Investors are pushing ResApp shares higher after the company secured a cashback for its COVID-19 research program.
According to the release, ResApp advised it has received approval from AusIndustry for its application for an Advanced and Overseas Finding. In particular, this is in relation to the expenditure associated with its COVID-19 clinical studies.
The finding covers the financial years between 2021 to 2023, meaning that ResApp will be eligible for a cash rebate. This refers to the company's COVID-19 overseas research and development expenditure, thus receiving a 43.5% cashback from the Australian government.
As such, ResApp estimates that it will collect a rebate of around $820,000 for the financial year that ended 30 June 2021.
In the United States, the company is currently recruiting participants for its upcoming pilot study. The aim is to collect data to train an algorithm in identifying COVID-19 through cough sounds recorded on a smartphone.
The same participants will also be used in a second study to collect further cough sounds and data on disease progression. ResApp hopes to develop algorithms to remotely monitor patients with COVID-19.
ResApp CEO and managing director, Dr Tony Keating commented:
Our COVID-19 research program is looking at developing algorithms for screening for COVID-19 as well as helping healthcare systems better manage patients with COVID-19, including those with long COVID. This finding, recognising the need to collect COVID-19 cough samples internationally, provides us with a high degree of certainty in planning our programs.
We are very grateful to the Federal Government for their commitment to supporting research and development by Australian companies.
ResApp share price summary
Until recently, ResApp shares were trading at multi-year lows, before shooting up in September. The past month alone has netted investors a return of more than 115%, however year-to-date, is up marginally at 14%.
ResApp commands a market capitalisation of about $83.3 million and has 859 million shares on its books.
