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Why the ResApp (ASX:RAP) share price is sinking 5% today

The ResApp (ASX: RAP) share price is sinking today despite a positive announcement made to the ASX market. Here’s the latest.
The post Why the ResApp (ASX:RAP) share price is sinking 5% today appeared first on The Motley Fool Australia. –

falling asx share price represented by woman making sad face

The ResApp Health Ltd (ASX: RAP) share price is sinking today. This comes after the company announced that Medgate had started European trails for ResAppDx, its smartphone-based acute respiratory diagnostic test.

At the time of writing, the digital health company’s shares are down 6.78%, trading at 5.5 cents.

First, a quick take on Medgate

Founded in 1999, Medgate provides telehealth services, bringing physicians to patients where needed via digital health bookings.

The company operates Europe’s largest telemedical centre in Switzerland and employs more than 500 people worldwide. Medgate has a presence in Germany, the Philippines, the United Arab Emirates, and India.

Why is the ResApp share price moving?

In today’s release, ResApp advised that Medgate has begun a 3-month pilot trial of ResAppDx through its telemedicine services in Switzerland. This follows a joint development and pilot agreement the companies signed in November last year.

During the initial phase of the partnership, both companies conducted detailed technical reviews on the ResAppDx technology. This included creating roadmaps for patients with respiratory disease symptoms, usability testing, automated processes, and training material development.

The companies will jointly evaluate the ResAppDx platform rollout across Medigate’s telehealth service. Several key metrics will be applied as a benchmark to test its success.

They will finalise negotiations on the cost model of the integration once ResAppDx passes the pilot trial.

Management commentary

ResApp CEO and managing director, Dr Tony Keating, commented:

…We are very confident that ResAppDx will provide considerable benefits for Medgate patients, physicians and insurers.

Medgate has made a strong commitment to ResApp and both parties remain confident of a successful pilot trial. The company has already significantly benefitted from Medgate’s knowledge and insights into telehealth best practice, and we look forward to continuing this work into the future.

Medgate CEO, Dr Andy Fisher, added:

We are absolutely convinced that the use of new technologies like ResAppDx will enable an advancement of our Digital Health platform. This will benefit our patients by enabling them to be treated conclusively by phone or video in even more cases.

ResApp share price review

The ResApp share price has been a weak performer over the past 12 months, declining more than 65%. The company’s shares hit a multi-year low of 5.2 cents last month and are within striking distance today, at 5.5 cents.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the ResApp (ASX:RAP) share price is sinking 5% today appeared first on The Motley Fool Australia.

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