The Respiri Ltd Fully Paid Ord. Shrs (ASX: RSH) share price has rocketed 18.2% higher at the market open after an update from the Aussie medical device company.
Image source: Getty Images
Why is the Respiri share price on the charge?
Respiri this morning announced a new agreement with TerryWhite Chemmart. The agreement will see TerryWhite Chemmart stores sell and market wheezo, commencing immediately.
wheezo is Respiri's medical device that records breathing sounds and detects and analyses wheeze. The innovative device helps to identify and manage symptoms associated with asthma.
TerryWhite Chemmart is Australia's largest pharmacy network with over 450 community pharmacies. The Respiri share price rocketed 18.2% at Wednesday's open as investors reacted well to the new deal.
Respiri CEO and Managing Director, Mr Marjan Mikel, said, "Respiri continues to grow wheezo product availability in the pharmacy channel as we recognise the important role that pharmacies play with supporting asthma management and care".
"This agreement with Terry White Chemmart takes the number of pharmacies contracted to stock and sell wheezo to approximately 1,000 stores", he added. That represents an "implied market footprint" of 22% based on the total number of ex-hospital community pharmacies in Australia.
The Respiri share price has once again surged higher this morning on the back of the news. At the time of writing, the Aussie medical device company's shares were up 18.2% for the day and 85.7% in the last 12 months.
Respiri said it remains in active discussions with several other large pharmacy banner groups. Further ASX announcements are expected once those discussions are finalised and initial orders have commenced.
Foolish takeaway
The Respiri share price has rocketed higher today after a new partnership announcement. The deal with TerryWhite Chemmart will expand its network of pharmacies selling the proprietary wheezo device across Australia.
That's been enough for shareholders to snap up the Aussie healthcare share in one of the day's early strong performers.
