Great article, lots to look forward too!!
Respiri mulling commercialization options for lead next-generation asthma product - source
19 MAR 2018
Respiri [ASX:RSH], an Australian digital respiratory health technology developer, is mulling commercialization options for its new next-generation lead product, which could include selling direct online or via a distribution, licensing or joint venture partner, said a source familiar with the company.
There is also potential for a spin-off down the track, the source said. He declined to elaborate but noted that nothing is off the table, and the company is happy to hear from global advisors who can introduce potential partners or investors, particularly in the US, UK and Europe, and China.
The catalyst for a commercialization deal is likely to be a finished product, the source added. Respiri expects to have a prototype of its AirSonea Generation II wireless asthma monitor ready by mid-year. It is expected to complete development and have Australian, EU and US regulatory approvals by the end of the year or early in 2019.
The AUD 43m (USD 33m) market capitalization company could also become a takeover target in the connected medical device space or for technology companies active in digital healthcare in about 12 months’ time on the back of the release of the product and with other products in its pipeline, including an overnight asthma monitor, the source added.
Large global medical device companies include
Philips [AMS
HIA],
3M [NYSE:MMM] and
Medtronic [NYSE:MDT], while global tech giants active in digital health include
Apple [NASDAQ:AAPL],
Google[NASDAQ:GOOGL] and
Samsung [KRX: 005930].
Asthma is the last of the three chronic diseases that does not have an industry-recognised digital monitoring device and Respiri offers the opportunity to do for asthma what others have done in the diabetes and cardiac monitoring spaces, the source said.
Respiri’s technology has first-mover advantage in the acoustic respiratory monitoring algorithm space in that it records airway sounds to detect continuous adventitious breath sounds and measure the extent of wheezing caused by airway obstruction, the source said.
Its devices work like a stethoscope, using special contact microphones, or acoustic sensors, to pick up breath sounds from the lungs at the windpipe in home monitoring devices, differentiating themselves from current written paper-based asthma plans or peak flow monitoring solutions, the source added.
Respiri’s products have global scale and address the needs of a huge market, with the global asthma market alone comprising some 330m sufferers. The company will initially focus on children with asthma.
In December 2017, Mario Gattino joined Respiri (known as iSonea until 2015) as CEO to drive commercialization. He released his 100-day CEO review earlier this month (5 March 2018). Respiri currently has some AUD 1.8m in cash and is a recipient of Australia’s R&D rebates.
Respiri declined to comment.
by Louise Weihart in Sydney
