Shares in ResApp Health Ltd (ASX: RAP) surged higher on open today after the company announced its wearable device has achieved CE mark certification. In early trade, the ResApp share price leapt 10.53% to 6.3 cents. However, at the time of writing, ResApp shares have retreated back to 5.8 cents, up 1.75% for the day so far.
Let's take a look at what the digital health company announced.
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What caused the ResApp share price to jump?
The ResApp share price was on the rise this morning after the company declared its wearable, cough monitoring device has achieved CE mark certification as a "Class I medical device accessory". A CE mark indicates that a product has conformed with the necessary health, safety and environmental standards to be sold in the European Union market.
According to ResApp:
The device has very high accuracy and precision. It can identify over 93% of coughs events, with less than 1% of identified events being false positives. Unlike existing solutions, it does not require manual review of cough sounds by an analyst, ensuring a less labour-intensive and more rapid approach to monitoring.
ResApp developed the device in conjunction with Avanti Capital Group subsidiary, Avanti Med. The group is a United Kingdom-based venture capital company. ResApp will now issue Avanti with 6.25 million shares with an approximate value of $500,000 under its 15% placement capacity.
Words from the CEO
ResApp managing director and CEO Dr Tony Keating said
Achieving CE Mark is a major achievement, and we are confident that our wearable device will provide a number of commercial opportunities.
Discussions with potential partners, including global pharmaceutical companies, to introduce the wearable device into clinical trial settings have already commenced. The availability of the device provides a strong value proposition to potential partners and allows ResApp another opportunity to commercialise new products aimed at assessing and predicting respiratory disease progression.
ResApp share price snapshot
Despite today's positive news, the ResApp share price has been on the slide of late. Over the past twelve months, ResApp shares have fallen by more than 68% from 18 cents to their current level.
This is in stark contrast to many other ASX healthcare shares than benefitted during the COVID-19 pandemic.
At its current valuation, ResApp has a market capitalisation of around $43.1 million.
