Respiri eyes maiden 2021 revenue of $6-8m
Health & Biotech
Health & Biotech
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Special Report: Respiri is changing gears from development company to fledged revenue-generating medtech business.
Respiri (ASX:RSH) expects revenue to be in the millions in 2021, after accelerating to a maiden full year revenue figure of $6m-8m.
The eHealth Software as a Service (SaaS) company has spent the last six months signing commercial deals and outreach programs to sell its respiratory health management wheezo device and SaaS subscriptions.
Respiri has closed agreements with Zip Company (ASX:Z1P), a sales deal for Australia and New Zealand with multinational Cipla, and the Pharmacy Guild of Australia (PGA) to develop an online training course on optimising asthma patient management.
The first sales will start in October this year.
Pharmacies are the company’s main sales channel, and the guidance is predicated on these businesses continuing to operate through the COVID-19 pandemic.
“In discussions with our partners it has been apparent that respiratory disease patients such as asthmatics have a heightened level of awareness in effectively managing their disease, and in particular the potential for more serious adverse events from coronavirus (COVID-19) infections,” said Respiri chief Marjan Mikel.
He says the guidance forecast has been based on some hard facts: over 1m asthma patients visit a pharmacy every month and 20 per cent, or 200,000, of those speak with a pharmacist about their condition.
Cipla’s access to 80 per cent of all pharmacies in Australia, and the PGA training program that will ultimately give pharmacists a product they can recommend for managing asthma beyond the clinic and in the real world, means Respiri has opened a number of channels to market.
Mikel says they are also planning an online sales channel.
“In formulating our CY21 guidance the board considered a number of factors, including the resilience of the pharmacy channel from disruption during the COVID-19 pandemic in Australia, owing to its status as an essential service, along with Cipla’s active account management of 4,000 of these pharmacies and strong commercial relationships with the major pharmacy banner groups and chains.
“Equally, GP and other physician management of patients with asthma will continue during these difficult times as we are witnessing with the recruitment of health care practitioners to participate in the wheezo Patient Experiential Program (PEP), which is still moving ahead as planned.”