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.
