This ASX share is defying the odds to crack new 52-week highs

This health share is certainly kicking goals today.

| More on:
four excited doctors with their hands in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX health care index is down more than 2% today 
  • However, ASX health share ResApp is outperforming the index 
  • This company recently received an improved takeover offer from Pfizer 

The S&P/ASX 200 Health Care Index (ASX: XHJ) is in the red today, but this one ASX share is bucking the trend.

The ResApp Health Ltd (ASX: RAP) share price is currently at 17 cents, a 3.03% gain. It comes despite the ASX 200 healthcare index being down 2.11% so far today.

ResApp’s share price is trading at its highest level since 26 June 2020.

Let’s take a look at why ReApp Health is having such a good day.

Why is this ASX share rising?

ResApp shares are climbing a further 3% today after rocketing a massive 50% yesterday.

ResApp is a digital health company that works on smart phone apps to diagnose and manage respiratory disease.

Investors appear to be continuing to snap up Resapp shares today after pharmaceutical giant Pfizer improved its takeover offer for the company.

ResApp had entered a trading halt on 31 May pending the announcement and emerged from the freeze yesterday.

Pfizer has agreed to boost its offer from 11.5 cents per share to 14.6 cents per share or 20.7 cents per share.

ResApp originally announced it had entered an agreement with Pfizer in April. The two companies also entered a research and development licence agreement to work together on COVID-19 products.

ResApp’s CEO and managing director Tony Keating said the revised offer provides an “attractive premium” to the ResApp share price. He added:

We believe that it represents significant value for all shareholders and the ResApp Board strongly recommends shareholders vote in favour of the transaction in the absence of a superior proposal.

The final offer will depend on the results of a clinical validation study on Resapp’s COVID-19 cough detection tool.

The results of this study are expected to be announced on or near 20 June.

Share price snapshot

The ResApp shares price has soared by nearly 55% in the past 12 months while it is up 162% year to date.

In contrast, the S&P/ASX 200 Health Care Index has slipped nearly 15% in the past year and also year to date.

ResApp has a market capitalisation of around $146 million.

Motley Fool contributor Monica O'Shea 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 Scott Phillips.

More on Share Market News

Blue light arrows pointing up, indicating a strong rising share price
Share Market News

Here are the top 10 ASX 200 shares today

These ASX 200 shares bested the rest on Thursday.

Read more »

Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Thursday

Our most traded ASX 200 share of the day was at one stage up 19%...

Read more »

Worker inspecting oil and gas pipeline.
Share Market News

Own Santos shares? Here’s what the company just announced

Santos shares are moving into positive territory today despite a drop off in the sector.

Read more »

A gold bear and bull face off on a share market chart
Share Market News

Equity markets threaten to ‘melt up’ as Nasdaq enters bull market territory

No wonder I’m feeling better about my investments.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin.
Share Market News

5 things to watch on the ASX 200 on Thursday

There are some big results awaiting the ASX 200 on Thursday...

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Market News

3 ASX All Ordinaries shares rocking new 52-week highs on Wednesday

Which All Ords shares have recorded new 12-month highs today?

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
Share Market News

Here are the top 10 ASX 200 shares today

These 10 ASX 200 shares outperformed all others on Wednesday.

Read more »

a group of three people carry a large block to line it up in ascending order with two other blocks nearby.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

Our most traded ASX 200 share today is up 10%.

Read more »