Respiri poised to crack China market
Published 17-MAY-2017 14:47 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
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.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
