Respiri raises $12.5 million to commercialise wheezo asthma device
The funding will also support future commercial launches in key offshore markets including the US, Europe and the UK.
eHealth company Respiri (ASX: RSH) has completed a $12.5 million capital raising targeted at the commercial launch of its proprietary wheezo asthma management platform in Australia before year end.
The raising was conducted via the issue of 62.5 million new and fully paid ordinary shares in Respiri to institutional, sophisticated and professional Australian investors at an issue price of $0.20 each.
The price represents a 6.5% discount to the volume weighted average price (VWAP) of the company’s shares in the 30 days to 13 October.
Blue Ocean Equities acted as lead manager and bookrunner for the raising.
Cashflow breakeven
Respiri executive chairman Nicholas Smedley said the oversubscribed placement is expected to fully-fund the company to sustainable cashflow breakeven by the second half of financial year 2022.
“This additional funding also provides Respiri with the financial flexibility to meet our stated corporate objectives, which in the near term supports the commercial launch of wheezo in Australia this quarter under our exclusive pharmacy partnership with Cipla,” he said.
Cipla is a leading pharmaceutical company with a specialty focus in respiratory medicine and owns significant sales and marketing infrastructure covering over 80% of the pharmacy market in Australia.
“In the long term, it supports commercial launches in key offshore markets including the United States, Europe and the United Kingdom,” Mr Smedley said.
Innovative device
Developed in Australia with the support of respiratory specialists and other healthcare professionals, the innovative wheezo device analyses a patient’s breathing for the presence of a wheeze.
The accompanying eHealth app assists with asthma management by tracking symptoms, triggers, medication usage and geo-specific weather conditions.
The wheezo platform has been designed to extend asthma management beyond the clinic, making it easy for patients to share and adjust their asthma action plans in consultation with their doctors.
Respiri believes better active management may lead to better outcomes and improved quality of life for asthma patients.
Last month, the company announced preliminary results of a clinical study that showed the wheezo device is capable of accurately detecting wheeze in patients with chronic respiratory ailments.