Are Respiri Shares Set for Another Breakout? (ASX:RSH)

As some Money Morning readers may know, Respiri Ltd [ASX:RSH] had a phenomenal 2020.

This tiny MedTech company, Respiri Ltd [ASX:RSH] managed to quadruple its share price from a low 6 cents in March to around 24 cents in mid-October.

Riding high on the back on their incredible momentum and flood of updates. Many of which you can read about here, and here.

However, this success would prove fleeting.

From that October high, Respiri’s share price sunk into a prolonged downward and then sideways trend. With the stock hovering between the 12 and 14 cent mark for roughly three months.

That all changed earlier this month though, with the share price finally breaking out of its lull. Spiking to 16 and 17 cents on 11 and 12 March respectively.

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So, is Respiri primed for yet another breakout?

Key clearance, a new programme, and lofty ambitions

First and foremost, I obviously have to mention what is no doubt behind this stock’s recent rise — a key win that is vital to the ongoing success of this rising MedTech star…

Last Tuesday, Respiri announced that it had received Food and Drug Administration (FDA) clearance. Getting the green light to market their Wheezo device and app in the US. A huge market that they have tirelessly been working to penetrate.

With a lot of red tape now out of the way, Respiri is free to pursue their North American ambitions.

So, investors will want to keep a close eye on any upcoming sales figures. Our first glimpse and insight into just how quickly adoption of these products may be.

After all, we’ve seen MedTech products make quite a splash rather quickly in the past. The kind of immediate success that can send a share price soaring.

Whether Respiri will be able to achieve that, only time will tell.

But it is not as if the US is management’s only focus either.

As the company has announced today, it is set to launch a new Australian programme. Utilising the help of a Respiratory Physician (Dr Kevin Chan) to provide support to asthma patients and promote Wheezo.

More importantly, this venture will also rely on telehealth and remote management systems. Creating a healthcare solution that can reach patients beyond the scope of a clinic.

As Dr Chan comments:

I have many patients who come and see me, describing their wheeze and other respiratory            symptoms that happened weeks prior, which does not paint an accurate or complete picture of          the patient’s respiratory condition.

Through remote digital monitoring and Connected Care consults, I expect to be in a much better position to understand the patient’s progress on a day-to-day basis. This is particularly important for patients with poor asthma control.

So, on top of being a noble pursuit, it could be a profitable one for Respiri. Giving them ability to reach potential customers who otherwise may not have engaged with or known about Wheezo.

Which is a perfect glimpse into the kind of aggressive marketing that will be required for this company to flourish.

Where to next for the Respiri Share Price?

Respiri shareholders should definitely feel optimistic about this company’s situation.

Management has put the business in a good position to succeed. Tackling multiple markets, with multiple strategies, with an FDA-approved product.

A perfect mix that should give them the edge they need to showcase their solution for respiratory healthcare.

Whether it will be as well received by customers though, is another matter entirely — the final hurdle that will likely determine whether the share price moves higher or lower.

Either way though, Respiri has set the stage for explosive growth. Now they just need to seize it as best they can.

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Regards,

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.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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