The ResApp Health Ltd (ASX: RAP) share price has surged today following a positive announcement on a partnership agreement.
At the time of writing, shares in the digital health company are 10% higher at 11 cents. This compares to the All Ordinaries Index (ASX: XAO) which is flat at 6,399 points.
New partnership
ResApp advised it has signed a 12-month marketing agreement with Australia's largest consumer healthcare network, HealthEngine. The new partnership will see HealthEngine integrate its booking network into ResApp's mobile medical application, SleepCheck.
The easy to use, direct-to-consumer mobile application assesses a person's risk of obstructive sleep apnoea by analysing breathing and snoring. It requires no accessories or hardware other than the user's smartphone to make an assessment.
If SleepCheck identifies a person is at risk of obstructive sleep apnoea, the application will direct them to see a doctor. HealthEngine's integration helps patients find and connect with healthcare service providers through a dedicated landing page.
Under the agreement, ResApp will retain all revenues generated from the app download. In addition, for every new patient referred through the Sleep Check application, ResApp will received a portion of the revenue.
Both companies did not state any forecasted earnings as the partnership is in its early stages. However, ResApp was confident of a significant consumer uptake in SleepCheck, unlocking a new revenue stream.
The new partnership has the flexibility to be extended beyond the 12-month agreement.
What did management say?
ResApp CEO and managing director Tony Keating welcomed the collaboration, saying:
This partnership is a tremendous achievement for ResApp and highlights SleepCheck's potential in the Australian market. The agreement with HealthEngine provides us with access to a trusted and reliable consumer healthcare network, which will further improve our offering by allowing users to immediately progress the treatment journey.
This agreement is further evidence of ResApp's ability to attract large, industry leading partners that it can leverage to drive growth well into the future. The company has a number of partnerships pending, which will provide it with a solid foundation to scale.
ResApp share price summary
Despite the uplift in its share price today, ResApp shares have been on a downhill trend for a rolling 52 weeks. Reaching a low of 5.5 cents in March, the ResApp share price has somewhat recovered, up 100%. But the numbers are still a long way off its share price high of 41.5 cents achieved this time last year.
