The share price of medical technology company Respiri Ltd [ASX:RSH] has pushed higher today thanks to positive results from its latest clinical study.
At the time of writing, RSH shares had pushed 3.23% higher to trade at 1.6 cents.
The RSH share price has grown exponentially after the company announced it had doubled its FY20 revenue last week.
Today’s share price rise puts RSH just shy of its 52-week high of 1.7 cents.
Wheezo successfully detects wheeze
Good news for the development of RSH’s software ‘wheezo’.
The e-health company said the latest clinical study shows a moderate agreement between their technology and physicians in detecting wheeze.
Respiri is an e-health software-as-a-service (SaaS) company that develops devices to assist in respiratory health management.
Its wheezo technology detects wheezing in breathing to provide an objective measure of airway limitation.
Wheeze is a typical symptom of asthma, COPD, and respiratory disease.
Wheezo employs machine learning to provide personalised feedback and education based on the user’s personal health data correlated with environmental factors.
RSH is part of a growing number of AI stocks focusing on healthcare.
Robot doctors: How AI is revolutionising healthcare (FREE REPORT).
In today’s announcement, RSH said their latest study pitted wheezo against the gold standard clinician-based stethoscope measurement of wheeze.
The study results from RSH’s previous algorithm showed that the wheeze rate measured by wheezo correctly detected wheeze 74% of the time and correctly detected no wheeze 83% of the time.
But when the data was reanalysed the algorithm was improved.
Results then showed wheezo correctly detected wheeze in 81% of cases and correctly detected no wheeze in 79% of cases.
When accounting for the subjectivity in physician assessment, wheezo was able to correctly detect wheeze in 89% of cases.
What does this mean for Respiri?
RSH has already announced high hopes for their proprietary technology.
In July this year the company said it is forecasting revenues of $6–8 million by the end of calendar year 2021.
A year and a half away at the time.
Given the doubling of their revenue during the previous financial year, the guidance might not be as ambitious as first thought.
Although FY20 revenue came in at $2.2 million.
Meaning, they’ll need to triple revenue before the end of next year.
What this does suggest is just how much confidence RSH has in their product.
And given the trouble one respiratory disease has caused recently, doctors and patients might be more vigilant.
But RSH isn’t the only AI stock to have made big strides recently. Another ASX-listed AI stock has doubled its share price five times since 2015. If you want to learn more then get yourself a free copy of our report, ‘The Most Exciting AI and Automation Stocks on the ASX’. Download your copy here.
Regards,
Lachlann Tierney,
For Money Morning
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