Respiri Share Price Up 22% on the Back of a New Deal

It’s been a big year for respiratory awareness.

COVID-19 has forced the world to pay more attention than ever to their breathing. Whether it be putting on a mask to stay safe, or the use of ventilators to keep victims healthy.

And for those with existing respiratory illnesses, like asthma, it has been an even more challenging time.

Unlike the rest of us, people with existing conditions are at even more risk. Making COVID-19 a far more deadly threat.

Which is precisely why companies like Respiri Ltd [ASX:RSH] and their technology are so important. A fact that one Indian pharmaceutical giant has clearly realised…

Landmark deal breathes new life into Respiri

See, Respiri makes a range of respiratory monitoring devices.

Their leading product ‘wheezo’ is a hand-held device that can easily track how a patient is breathing. All they have to do is simply breathe into it or keep it near them at night.

Then, if the device detects any abnormalities or difficulties, it will report it to users via an app. Giving them time and certainty to respond to a potential asthma attack.

And in time, Respiri plans to add the ability to monitor weather and pollen conditions as well, allowing users to even prepare in the event of adverse conditions.

Cipla Ltd — a Mumbai-based pharmaceutical company will now help Respiri bring wheezo to market. Agreeing to a five-year sales deal, with the option to extend it for a further three.

They will start with an initial order of 2,000 wheezo’s, which Respiri hopes to begin delivering by October. No doubt with the intention of more orders to come in 2021 and beyond.

With a market cap of US$7 billion, Cipla certainly has the money to make larger orders. And in time, if wheezo can achieve the success that both parties hope for, those orders should come. Especially as Cipla are no strangers to the needs and wants of the respiratory market.

As Respiri’s CEO, Marjan Mikel comments:

With a leading respiratory disease franchise in Australia and in all major international markets, Cipla represents an ideal partner for Respiri as the Company executes its transformation program to an eHealth SaaS partner,

The news has seen the RSH share price rise by 22% in trading today. A strong endorsement of the company’s ability to deliver stronger revenue growth moving forward.

More exponential potential to be found

For Respiri, the challenge now is to find a way to build on this momentum. Turning this deal into a trend that could lead to exponential growth.

It certainly is possible, it’s simply a matter of whether or not they can make it happen.

Investors will need to weigh up the risks and rewards on their own though. Because right now, Respiri is still very much a speculative play.

If you’re looking for investment opportunities that are more grounded, then you’ll want to look for more tangible value. Not that that means they have to forsake growth either.

For example, we’ve found four high-value small-caps that are looking primed to keep growing. Companies that any investor should consider when looking at the tinier end of the market.

Check out these four stocks in our latest report, right here.

And keep an eye on Respiri, because while it may be early days, this could be the start of a much bigger story.


Ryan Clarkson-Ledward,
For Money Morning



Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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