According to the company’s release, ResApp is planning to provide an update regarding a proposed acquisition by Pfizer Australia. The global biopharmaceutical giant offered to purchase ResApp for 11.5 cents per share in cash. In total, this represents an equity value of around $100 million.
However, certain regulatory approvals need to be met for the deal to go ahead. This includes being given the nod from the Australian Competition and Consumer Commission (ACCC).
Before the market opening, the company requested that trading in its shares be halted while preparing an announcement. Following the proposal, ResApp’s directors unanimously recommended its shareholders vote in favour of the scheme of arrangement. ResApp has requested the trading halt remains in place until Thursday 2 June or when the announcement is made, whichever comes first.
ResApp is a digital health company that specialises in developing smartphone apps for the diagnostics and management of respiratory diseases. Machine learning algorithms use sound to detect and measure a variety of breathing conditions, such as restricted breathing, snoring, and coughing. Its regulatory-approved products include ResAppDx and SleepCheck, which are both approved for sale and marketing in Australia and Europe.
Since this time last year, ResApp shares have more than doubled in value to register a gain of around 110%. In 2022, the company’s shares are 70% higher on the back of the Pfizer takeover offer. Based on valuation grounds, ResApp presides a market capitalisation of roughly $94.5 million.