Respiri poised to crack China market

By Trevor Hoey. Published at May 17, 2017, in Biotech

Shares in Respiri (ASX:RSH) surged more than 30% in April in response to news that its Next Generation proprietary AirSonea home monitoring device for symptoms related to asthma and Chronic Obstructive Pulmonary Disease (COPD) had received CE Mark approval.

Of course it should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

There was further positive momentum in late April when management said that it expected to receive written commercial in-confidence approvals by the end of May from at least two potential partners in China.

This would be an extremely beneficial market to enter given that pollution is driving the increase in asthma, COPD and other respiratory diseases. However, it is worth noting that the company’s share price has plateaued out since then, perhaps creating a buying opportunity ahead of the release of such an announcement which appears imminent.

RSH is now in a position where its products have been cleared for use by the US Food and Drug Administration (FDA) body, the European Union CE and the Australian TGA, while the commencement of an approval process for its AirSonea device which would facilitate distribution in Asian markets is in train.

Arguably assisting RSH in gaining approval in new markets such as Asia is the fact that the next generation product was awarded a Class 11a approval, a higher level than the previous Class I approval, validating the substantial improvements and advancements made on the AirSonea device’s software and technology.

Based on management’s comments there is likely to be information released in the next fortnight regarding potential partnerships, a potential share price catalyst given China’s mass-market appeal.

It is also worth noting that any such agreement could provide a platform for RSH to expand into the broader Asian region where medical infrastructure in some areas struggles to keep pace with demand, creating increased need for home devices such as AirSonea.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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