Respiri enters its first 5 year Remote Patient Monitoring (RPM) Distribution/Marketing Agreement in the United States with mTelehealth, LLC
ASX ANNOUNCEMENT
23 December 2021
Respiri enters its first 5 year Remote Patient Monitoring (RPM) Distribution/Marketing Agreement in the United States with mTelehealth, LLC
Highlights:
• Five-year, Non-Exclusive Distribution and Marketing Agreement signed with mTelehealth in the key US
market
• mTelehealth is a premier provider of RPM services based in Florida
• First key distribution and marketing agreement signed in the US market
• Initial US$150,000 order, with minimum forecast sales of US$1 million over the life of the agreement by mTelehealth
• Physicians will be able to claim RPM CPT reimbursement for wheezo® and Respiri will share these monthly recurring revenues in addition to the devices sales
• Further third party agreements anticipated as Respiri builds out US RPM strategy for wheezo®
Respiri Limited (ASX:RSH)(“Respiri” or the “Company”), an eHealth SaaS Company supporting respiratory health management is excited to announce its first non-exclusive distribution/marketing partnership with Remote Patient Monitoring (RPM) and chronic care provider mTelehealth LLC, effective immediately. Under the terms of the Agreement, mTelehealth has placed a significant initial order for wheezo® devices and services, totalling USD$150,000 in December 2021 for delivery in January 2022 and is contracted to . Either party can terminate with 30 days’ notice if there has been a material breach of the Agreement. This Agreement is material, as the Company currently has no US sales for wheezo®. mTelehealth has forecast a minimum of US$1 million in wheezo® device sales over the five years of the Agreement (forecast only) with a contracted minimum quarterly commitment of 1,000
wheezo® units.
In addition to these initial device sales, 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 CPT reimbursement codes.
mTelehealth is a well-respected and known provider of complete turnkey RPM and associated services to physicians and relevant healthcare delivery organisations for over 11 years and is domiciled in Florida, US. mTelehealth’s US footprint is broad and includes the Departments of Health and their County affiliates, payor Health Maintenance Organisations (HMOs), hospitals, Universities, Medical Centres, along with other RPM corporations and institutions. RPM is the use of digital technologies deployed in the collection and analysis of patient physiologic data that are used to develop and manage a treatment plan related to a chronic and/or acute health illness or condition. RPM systems improve patient health and device compliance, which leads to a reduction in hospital admissions and reduced healthcare costs. In parallel, RPM generates new revenue streams for healthcare providers while improving patient care and associated medical information outside the clinic for evaluation and management purposes. In the US, the physician and relevant healthcare physicians are reimbursed directly for providing medical devices to
patients allowing them to provide Remote Patient Monitoring services, which are reimbursed by HMOs and Medicare. Organisations like mTelehealth have built relationships with physicians and relevant medical and reimbursement institutions to deliver devices and services that enable the physician to provide said RPM service enabling them to claim the reimbursement. Respiri has developed a US commercialisation strategy around forging strategic partnerships with such RPM service providers with these existing relationships. The US market is large and fragmented and there is no single company providing national coverage, hence Respiri’s strategy is to execute further agreements to gain broader coverage in the market. Respiri is delighted to have executed an agreement with mTelehealth, as a premier and first partner of the Company.
The overall RPM market is expected to show annual growth exceeding 30% to 2026 to US$85 billion, driven by the increase in the occurrence of chronic diseases (including asthma), demand for wireless and portable systems, the presence of sophisticated reimbursement structures, and a move to more cost effective medical expenditure.1
CEO and Managing Director of Respiri, Mr Marjan Mikel said “We are particularly excited about our partnership with mTelehealth, a trusted RPM partner to many healthcare delivery organisations and physicians across the United States. 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.”
President and CEO of mTelehealth, Mr Marc Poulshock said “We have a long pedigree in providing our customers across the United States with chronic care and remote patient monitoring turnkey solutions and we could see the health benefits that wheezo® could provide patients with asthma where very little, in the form of RPM solutions are available today. Part of our wheezo® due diligence was to discuss the device with physicians, HMOs and local Department of Health authorities and the responses were very positive. This was again reflected in the high level of inquiry that our initial marketing campaign waves generated from very large HMOs to county health departments and we are very confident with our 5 year forecasts for wheezo® sales. There is definitely a need for wheezo® in the US and we are pleased to have partnered with Respiri in this large and growing market.”
The Company is in active discussions with a number of additional RPM/chronic care providers, which should be finalised progressively during 2022.
For further information, investors and media please contact:
Mr Marjan Mikel
CEO & Managing Director
Respiri Limited
P: +61 408 462 873
E: marjan@respiri.co
Mr Nicholas Smedley
Executive Chairman
Respiri Limited
P: +61 447 074 160
E: nicholas@respiri.co
This ASX announcement dated 23 December 2021 has been authorised for release by the Board of Directors of Respiri Limited.
About Respiri Limited
Respiri is an e-Health SaaS company supporting respiratory health management. Its world-first technology detects wheeze, a typical symptom of asthma, COPD and respiratory disease to provide an objective measure of airway limitation. wheezo®, Respiri’s innovative technology, comprises an eHealth app combined with a simple, easy-to-use, handheld device. wheezo® is the first smart device to help improve asthma management by monitoring wheeze and documenting symptoms, signs, triggers, weather conditions and medication use. The asthma management platform also facilitates the sharing of data with caregivers, physicians, and other health care professionals.
1 https://www.businesswire.com/news/home/20210720005704/en/85-Bn-Remote-Patient-Monitoring-Market—Global-Forecasts-from-2021-to-2026—
ResearchAndMarkets.com
Respiri’s mission is to help improve quality of life for hundreds of millions of children and adults around the world and dramatically reduce hospital admissions and the economic burden of asthma. Respiri Limited’s operations are based in Melbourne, Australia.
For additional information about Respiri and its products, please visit www.respiri.co
About wheezo®
Developed in Australia, with the support of respiratory specialists and other healthcare professionals, the innovative wheezo® device analyses breath sounds for wheeze, and the eHealth App assists patients with managing their asthma by tracking symptoms, triggers, medication use and geo-specific weather conditions. The platform has been designed to extend asthma management beyond the clinic and make it easy to share information with doctors and make appropriate adjustments to asthma action plans. Better active management may lead to better outcomes and improved quality of life for the asthma patient.
For further information about wheezo®, follow the online link https://wheezo.com
wheezo® is a registered trademark of Respiri Limited.
About mTelehealth
mTelehealth, LLC, founded in 2010 and based in Delray Beach, FL, United States, is a premier provider of Remote Patient Monitoring (RPM), Remote Therapeutic Monitoring (RTM), Telemedicine, Chronic Care Management (CCM), Virtual Exam, Video Visit, and related Telehealth solutions. mTelehealth’s Remote Health Monitoring System, Powered by a TouchAway™, provides a complete solution to remotely collect, store, and report timely and accurate health information anywhere. The company connect patients with their families and care providers through an easy-to-use, affordable, remote health monitoring kit. For more information about mTelehealth, please visit our website: http://mtelehealth.com.
Forward Looking Statements
Certain statements made in this announcement are forward-looking statements. These forward looking statements are not historical facts but rather are based on Respiri current expectations, estimates and projections about the industry in which Respiri operates, and its beliefs and assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance” and similar expressions are intended to identify forward looking statements and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those risks or uncertainties inherent in the process of developing technology and in the endeavour of building a business around such products and services. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Respiri, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward looking statements. Respiri cautions shareholders and prospective shareholders not to place undue reliance on these forward looking statements, which reflect the view of Respiri only as of the date of this release. The forward looking statements made in this announcement relate only to events as of the date on which the statements are made. Respiri will not undertake any obligation to release publicly any revisions or updates to these forward looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.