The Resapp Health Ltd (ASX: RAP) share price has fluctuated in trading today to currently remain unchanged from this morning's opening price of $0.24.
This comes after ResApp made an ASX announcement this morning to state it has completed functional testing of prototype devices it received from two medical companies.
What does ResApp do?
ResApp is a digital health company that develops smartphone applications for the diagnosis and management of respiratory diseases. The company uses sound to diagnose and measure the severity of respiratory conditions without the need for additional hardware.
ResApp's target customer base includes healthcare providers in telehealth, emergency department, urgent care, and primary care settings as well as humanitarian organisations in the developing world.
What did ResApp announce today?
ResApp announced it has successfully completed functional testing of both handheld and wearable device prototypes received from Avanti Med Limited and OSI Electronics, two UK-based medical device companies.
These new prototype devices expand ResApp's product portfolio and will enable it to address specific use cases.
The prototype handheld and wearable devices are Android-based, and will be used as a low-cost option, complementary to smartphones, for using ResApp's respiratory disease diagnosis apps in specific clinical environments for users.
The wearable monitor provides for up to three days of continuous monitoring of patients with chronic diseases such as chronic obstructive pulmonary disease and asthma. The monitor is intended to be CE Marked according to European regulations.
Platform for commercialising new products
Moving forward, ResApp sees the wearable monitor as providing a unique platform for commercialising new products aimed at assessing and predicting respiratory disease progression.
ResApp noted that further clinical, electrical and usability evaluation is currently underway. CE Mark approval is now targeted in the first half of calendar year 2020.
The completion of this functional testing of both the handheld and wearable devices satisfies the first of three requirements under the device development agreement that was announced to the ASX back in May 2019.
Payment for devices
Due to satisfying the first requirement, ResApp will accordingly make a payment of $500,000 for each device.
The company has elected to pay this in shares, with a total of 4,773,068 shares to be issued by ResApp at a deemed price of $0.2095. The shares will be issued under the company's 15% placement capacity.
