Respiri (ASX:RSH) enters US distribution deal with mTelehealth
23 December 2021 14:54 (AEDT)
Respiri (RSH) has entered a non-exclusive distribution and marketing partnership with remote patient monitoring (RPM) and chronic care provider, mTelehealth.
Under the deal, the US-based healthcare company will place an order for Respiri’s wheezo devices and services.
Importantly for Respiri, this marks its first key distribution and marketing deal in the US market.
The wheezo device analyses breath sounds and the eHealth app helps patients with managing their asthma by tracking symptoms, triggers, medicine use and weather conditions.
wheezo is available in pharmacies across Australia and received the tick of approval from the US Food and Drug Administration earlier this year.
Respiri has been focused on commercialising its product in the US market and forming partnerships with Remote Patient Monitoring (RPM) service providers and was pleased to be signing the agreement.
Respiri and mTelehealth will share the Product as a Service (PaaS) monthly fees that will be charged to physicians and other Healthcare Professionals claiming RPM and other Current Procedural Terminology (CPT) reimbursement codes.
Respiri CEO and Managing Director Marjan Mikel is excited about the partnership, praising mTelehealth CEO Marc Poulshock and his team.
“Marc and his team very quickly understood what patient benefits wheezo could provide and imparted invaluable local knowhow to help us better tune our US launch strategy and leverage the existing RPM CPT reimbursement codes available to Respiri. This agreement demonstrates that we are executing on our US strategy.”
The initial order is valued at US$150,000 (A$208,087) however mTelehealth has forecast at least US$1 million (A$1.4 million) in wheezo device sales over the five year term of the agreement. The deal has a contracted minimum quarterly commitments of 1000 wheezo units.
In addition to the initial device sales, Respiri and mTelehealth will share the product-as-a-service monthly fees that will be charged to physicians and other health professionals who claim RPM and other CPT reimbursement codes.
The devices are expected to be delivered in January.
Company shares were up 3.51 per cent and trading at 5.9 cents at 2:11 pm AEDT.