The Respiri Ltd (ASX: RSH) share price has today reached 52-weeks highs, following news that the eHealth company signed a merchant services agreement with major payments share Zip Co Ltd (ASX: Z1P). The Respiri share price is currently trading over 17% higher at 17 cents per share.
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What does Respiri do?
Respiri is a medical technology company that develops devices and mobile health applications, with the aim of improving patient self-management of chronic, costly respiratory disorders. Respiri's technology is used in major hospitals in UK, Europe, USA, Japan, Korea and Australia.
The company's flagship device 'wheezo' employs machine learning to provide personalised feedback and education to patients. Its goal is to help improve quality of life for children and adults who suffer from diseases like asthma, diabetes and cardiovascular illness. Furthermore, it aims to dramatically reduce hospital admissions and the economic burden from these diseases.
Respiri's operations are based in Melbourne, Australia.
Why is the Respiri share price storming higher?
The Respiri share price is climbing on the announcement of a merchant services agreement with well known buy now, pay later (BNPL) service provider, Zip.
Respiri CEO Mr Marjan Mikel noted:"Our Agreement with ZIP provides asthmatic patients seeking access to our platform additional financial flexibility when making these important healthcare decisions relating to improvements in the management of their disease."
As recently as last Friday, the company also announced that it had signed an exclusive sales agreement with Cipla Australia for wheezo. Cipla Ltd is a globally recognised pharmaceutical company. The deal saw the Respiri share price jump over 30% on Friday alone.
The agreement with Cipla is for an initial minimum order quantity of 2,000 with delivery in October. It has a 5-year term, with a 3-year renewal option. According to Respiri, Cipla Australia possesses significant sales and marketing infrastructure, covering over 80% of the pharmacy market in Australia.
Foolish takeaway
The Covid-19 crisis has seen a shift toward remote care to try to keep patients out of hospitals, lower costs and improve care. In my view, these factors will encourage greater adoption of Respiri's remote patient monitors, and the company's partnerships with Zip and Cipla will also make it easier for consumers to acquire Respiri's products.
Respiri shares have been storming higher so far this year, as the company sees high demand for its software-as-a-service platform. This demand has seen the Respiri share price rise by more than 70% in 2020.
