Respiri Share Price Jumps on Manufacturing Deal (ASX:RSH)
At time of writing, the Respiri Ltd [ASX:RSH] share price is up 4.55%, trading at 23 cents.
The Melbourne-based biotech company recently announced a manufacturing partner for their new product, wheezo™.
With recent positive clinical study results, the company also completed the search for a manufacturing partner.
What’s happening at Respiri?
Respiri is working on a new product that is showing promising signs of being able to detect wheezing in patients.
The company recently announced positive preliminary results of a clinical study comparing wheezo™ to the standard clinician-based stethoscope measurement of wheezing associated with asthma and chronic obstructive pulmonary disease.
With the encouraging results in hand, the next natural step was to find a manufacturing partner for the new product.
Today, the company announced their search was complete and that they had appointed Entech Electronics as the global manufacturing partner for wheezo™
Entech Electronics are Australian based.
Operating in Devon Park, South Australia, the company has operated offshore production facilities in Shenzhen China since 2006.
Respiri have placed initial orders for manufacturing to begin with 12,000 devices commissioned for delivery in February 2021.
Marjan Mikel, Respiri’s CEO and Managing Director, commented:
‘We are delighted to partner with Entech Electronics as they are well placed to support our global product volume requirements at cost positions that support Respiri’s business model.’
Where to from here for Respiri?
Since May the RSH share price rose significantly. On the back of the most recent news, I would not be surprised if this trend continues — such is the strong upward momentum.
With the RSH share price trading very close to the most recent high at the time of writing, the chart looks bullish, and should the RSH share price keep moving up, then the levels of 24 and 25 cents may come into play.
On the other hand, if the price were to start to fall back, then the levels of 21 and 19 cents may become the focus in the short term.
The current trend in Australia towards medtech could be a major investing theme on the ASX for years to come.
Recent coverage in the Australian Financial Review suggested it is now our largest manufacturing export worth over $8.2 billion annually.
But there are other trends to watch as well, particularly in e-commerce and safety technology.
Get the names of four companies operating across these two trends in this excellent free small-caps report.
It’s a must read.
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