- eHealth developer Respiri (RSH) has netted an exclusive international sales agreement with Cipla Australia
- The agreement covers Respiri’s wheezo device, an asthma management tool which monitors the user’s respiration
- Under the agreement, Cipla will order at least 2000 wheezo devices from RSH
- Significantly, Respiri anticipates revenue will start to trickle in from the second half of 2020
- Today, Respiri investors have embraced the news, driving the share price up by 15.9 per cent to 12.8 cents per share
eHealth developer Respiri (RSH) has netted an exclusive international sales agreement with Cipla Australia.
The agreement covers Respiri’s wheezo device, an asthma management tool which monitors the user’s respiration.
Source: Respiri
“With a leading respiratory disease franchise in Australia and in all major international markets, Cipla represents an ideal partner for Respiri,” CEO Marjan Mikel explained.
Under the agreement, Cipla, a subsidiary of the Mumbai-based conglomerate of the same name, will order at least 2000 wheezo devices.
The deal comes at a perfect time; Respiri has reportedly streamlined its manufacturing process, reducing the production cost for every unit made.
As a result, RSH believes its gross product revenue margins will land between 30 per cent and 40 per cent from 2021. More importantly, that prediction is forecast to improve as the production volume picks up.
And Respiri says it won’t have to wait long to see the financial upside from the deal; it anticipates revenue will start to trickle in from the second half of 2020.
Who is Cipla?
For Respiri, this agreement represents a significant opportunity. Cipla is globally recognised and recorded US$2.2 billion (around A$3.15 billion) in worldwide revenue back in FY19.
Importantly, its homegrown branch, Cipla Australia, has over 200 formulations registered with the Therapeutic Goods Administration (TGA). Of those, a wide variety include Cipla’s own formulations and those created by its healthcare partners, encompassing both over-the-counter (OTC) and hospital-grade medications.
Additionally, Cipla Australia services over 15,000 GPs and 4000 pharmacies. RSH can use those connections to engage with leading pharmacy chains and even develop a “pharmacist asthma education program.”
Meanwhile, Respiri CEO Marjan Mikel believes the agreement comes at a crucial time.
“Respiratory disease monitoring and management has never been more important with the COVID-19 pandemic posing an increased risk for asthmatic patients within Australia and globally,” he noted.
Today, Respiri investors have embraced the news, driving the share price up by 15.9 per cent to 12.8 cents per share at 12:44 pm AEST.