Successful Capital Raise and Commencement of Trading
Key Clinical Study Progressing Well
- Successful, oversubscribed $4 million capital raise
- Funds raised to accelerate the commercialisation of its mobile applications for the diagnosis and management of respiratory diseases
- ResApp’s technology is based on a machine-learning algorithm that uses sound alone to diagnose and measure the severity of a respiratory condition
- Key clinical study continued at Joondalup Health Campus to further optimise the ResApp technology
- Enrolment of targeted 150 patients for the clinical study completed after end of quarter and initial results expected in Q3 2015
- Strong pipeline of activity expected in coming months, with advanced discussions underway to initiate further studies
- Company enters Q3 2015 well funded and strategically positioned to become a leading provider of telehealth services in diagnosing respiratory conditions
ResApp Health Limited (‘ResApp’ or ‘the Company’), the developer of smart phone medical applications for the diagnosis and management of respiratory disease formerly named Narhex Life Sciences Limited, is pleased to provide its quarterly report for the period ended 30 June 2015.
The Company completed the acquisition of ResApp Diagnostics Pty Ltd and was renamed ResApp Health Limited. As part of the acquisition, the ResApp vendors, which include The University of Queensland’s commercialisation company, UniQuest, received 93,750,000 shares as well as 93,750,000 performance shares. These performance shares convert to shares on ResApp achieving $20m in gross revenue or an acquisition event.
During the quarter, the Company raised $4 million, issuing 200 million shares at $0.02 per share. The capital raise received strong interest and was oversubscribed.
Following the period ended 30 June 2015, ResApp Health’s shares commenced trading on the ASX under the ticker ASX:RAP. The Company also announced the appointment of Dr Roger Aston as Non-Executive Chairman. Dr Aston replaced Mr Adam Sierakowski who oversaw the transition of Narhex Life Sciences to ResApp Health and will remain on the Board as a Non-Executive Director. Dr Aston is both a scientist and a seasoned biotechnology entrepreneur, with a successful track record in both fields.
With a cash balance as at 30 June 2015 of $4.098 million, the Company is fully funded to progress the commercialisation of its products.
During Q1, ResApp commenced a clinical study of its smartphone application for the diagnosis and management of respiratory disease at Joondalup Health Campus (JHC), the largest hospital in Perth’s Northern suburbs. Enrolment in this study continued in Q2. The study will gather data from patients with a variety of respiratory conditions, with the aim of further optimising the ResApp technology for pneumonia and asthma as well as broadening the validation to other common respiratory conditions such as bronchitis, bronchiolitis and upper respiratory tract conditions.
Following the period ended 30 June 2015, the Company announced that enrolment at the Joondalup Health Campus had exceeded 150 patients. The Company plans to continue enrolment at Joondalup as well as increase the enrolment rate by adding a second clinical site in Q3. As the Company’s core technology uses a machine-learning algorithm, additional data from increased enrolment has the potential to further increase the accuracy of the technology as well as broaden the range of respiratory diseases targeted. The Company is now working with The University of Queensland to analyse the data and expects to receive initial preliminary results in Q3 2015.
In the coming quarter the Company is focused on accelerating further clinical studies in Australia and internationally and will be engaging with regulatory consultants to refine the regulatory strategy for submission of the ResApp technology to the US Food and Drug Administration (FDA) and the Australian Therapeutic Goods Administration (TGA). The company is currently in discussions with telehealth providers as well as international aid agencies about partnership opportunities.
About ResApp Health Limited
Founded in 2014, ResApp Health Limited, through an exclusive license it has been granted by the University of Queensland (UQ) is developing smartphone medical application for the diagnosis and management of respiratory disease. The technology is based on a machine-learning algorithm that uses sound alone without the need for additional hardware to diagnose and measure the severity of a respiratory condition. The algorithm has been successfully tested for pneumonia and asthma diagnosis in clinical proof of concept study by UQ through funding from the Bill and Melinda Gates Foundation.
Full Appendix 4C is available on the ASX website.