Pfizer has announced it will acquire ResApp Health (ASX:RAP) in an acquisition that values the Australian digital health company at $100 million.
ResApp has developed smartphone applications that support the diagnosis and management of respiratory disease.
Its machine learning algorithms use sound to diagnose and measure the severity of respiratory conditions without the need for additional accessories or hardware.
Its ResAppDx is an approved smartphone-based acute respiratory disease diagnostic test for use in telehealth, emergency department and primary care settings. Its SleepCheck smartphone application allows consumers to self-assess their risk of sleep apnoea.
Under the acquisition agreement, Pfizer Australia will acquire 100 per cent of the shares in ResApp. The acquisition price of $0.115 per share in cash values the Australian company at approximately $100 million.
The companies have also entered an agreement under which they will collaborate on the research and development of products related to COVID-19.
ResApp CEO and managing director Tony Keating said, “We are excited by the prospect of this acquisition by Pfizer, a leading biopharmaceutical company that shares our vision and belief that technology can help transform healthcare and improve patients’ lives.
"The proposed acquisition recognises the years of dedicated work by the ResApp team to build ResApp into a leader in audio-based analysis of respiratory health.
"We believe that the material premium and certainty of an all-cash consideration is an attractive outcome for our shareholders.”
Pfizer's chief digital and technology officer Lidia Fonseca added, “This proposed acquisition and research collaboration add to our growing digital capabilities and bolster our efforts to pave a new era for digital health.”
A spokesperson for the company said, ‘Globally Pfizer has been investing in technology and talent around digital health innovation, and this acquisition is another step in enhancing our expertise in this area. ResApp’s solutions in respiratory health align well with our own therapeutic areas and portfolio of marketed and investigational medicines and vaccines, and will help enhance our expertise in AI."
The acquisition is expected to close in June.