Respiri Limited (ASX:RSH) Reports Record Patient Enrolment and Revenue Growth
Operating Highlights
Respiri Limited (ASX:RSH) reported significant achievements in its December 2024 quarterly activities. The company reached a record enrolment of 4,063 patient programs, indicating a 67% increase from the September 2024 quarter. Revenues surged to A$529,000 for the December quarter, reflecting a 29% growth compared to the prior quarter.
Acquisition of Orb Health
The company’s strategic acquisition of Orb Health has contributed notably to its growth, generating approximately A$6.7 million in revenue for the calendar year 2024. This acquisition resulted in nearly 2,500 additional patient programs and has already realised US$1.1 million in annualised cost savings.
Clinical Operations and Synergies
Following the acquisition, Respiri has streamlined operations, achieving a 19% reduction in monthly operating costs. The integration allows for enhanced service offerings and the potential for an additional A$2 million in revenue through cross-selling opportunities, particularly in chronic care management.
Revenue Growth Outlook
Respiri anticipates continued revenue growth, driven by both organic growth from existing clients and an active sales pipeline. Significant contracts with major healthcare organisations are expected to close imminently, potentially boosting patient numbers and recurring revenues.
Future Developments
In the coming months, Respiri invites increased opportunities within the expanding remote patient monitoring market. The adjustments made by the American Medical Association to remote monitoring guidelines signal a supportive environment for market expansion. Furthermore, the company’s ongoing wearable device study aims to enhance patient monitoring capabilities and support future regulatory submissions.
Executive Comments
CEO Marjan Mikel expressed optimism regarding the company’s direction, stating, “The acquisition of Orb Health marks a pivotal moment for Respiri as we position ourselves to lead the connected care market in the USA.”
Financial Overview
The company ended the quarter with A$1.25 million in cash and reported a 28% reduction in operating cash outflows.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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