Howdy Blue Lake Investors, what’s been happening? If you answered “staying indoors as much as possible because the weather is shit-house and everything hurts” then today’s post might just cure what ails you. I mean that in a strictly medical sense of course. You’ll see.
ASX:RAP (or Resapp Health) is hands down one of the most thrilling stocks we’ve ever written about, and it’s a damn shame we didn’t do it sooner. The reason for this is that it’s highly speculative, and we like to do our due diligence before putting the globally revered Blue Lake Invest reputation on the line. Also myself and Mick have acquired quite a bit of it recently and thought it might be poor form to shoot our mouths off while the trade was still settling. Well, we’ve been in it for over a month now and the time is still right to talk about arguably the most interesting stock listed on the ASX today. But first props to a mate who told us to have a look at the RAPtor, we like to call him the “PBI” (or Prominent Biotech Investor) as he usually knows what’s up with this kind of thing. Thanks PBI!
So what is RAP? As their name suggests, RAP’s core business is the development of a mobile application that is poised to revolutionise the diagnosis of respiratory conditions. How so? Picture this: you cough into a phone that has the RAP app loaded and it can tell you (with clinically proven accuracy rates of over 90%) what respiratory illness you are afflicted with. I’ll let the chart fill you in. I’d also like to add that these results have already been independently verified and delivered via the current iteration of the application. It seems simple enough, but I’d go as far as to say that this is the first step in truly mobile healthcare, and this point cannot be understated. RAP has developed a technology that can listen to the sound signature of your cough and diagnose you from a list of respiratory conditions based on their proprietary machine learning algorithm. It can do this better than a human doctor can. You might think that this all sounds a little trivial, did a cough ever kill anyone? We’ll get to that, but OECD estimates suggest that over 700 million doctors visits annually stem from a respiratory concern. That’s a massive market to be a part of, and RAP has already created the technology to take on the current clinical model.
Make no mistake, these results are huge. The reasons why RAP is set to significantly alter the global healthcare market are almost too numerous to mention, but I’ll have a crack at keeping it brief using some good old fashioned dot points.
- RAP is looking to achieve FDA approval by the end of 2016, allowing integration with current US e-health providers. Over 75 million “e-visits” are currently held by US doctors every year, with a projected 50%+ annual growth rate and total market size in excess of US $12 billion as it stands today. RAP estimates pricing of around US $10 per e-visit, which would provide an instant annual revenue stream far in excess of the current market capitalisation (more on this soon)
- RAP is the only technology in market clinically proven to be able to accurately diagnose respiratory illnesses remotely
- RAP is developing a consumer strategy for the estimated 1 billion plus smartphone users in Asia, a region where respiratory conditions have generally high incidence rates and the supply of doctors cannot meet demand
- Strongly placed as a remote condition management and monitoring tool for individuals with chronic conditions such as asthma
- For you tech types out there RAP has already developed an API, SDK and SaaS solution. Once the right deals are struck it can be deployed or integrated almost instantly
The best bit? RAP is pre-revenue and trades on a market cap just shy of AUD $200 million. I promise to never again use so much bold formatting in a post, but the opportunity (albeit speculative) is massive. With just 1 or 2 strategic telehealth partnerships in the US alone RAP’s stock price could explode well above the $0.37 close of yesterday. Of course, this relies on a few things (such as FDA approval) however it should also be pointed out that RAP has engaged an FDA approval consultant with a 99% success rate. There’s no accurate way to value RAP given the incredibly broad application of their technology, so I’ll just point out that despite no new market information for the past month the share price has nearly doubled. I get the feeling that something’s brewing….. But as always, do your homework and see if it suits your style. And don’t forget to swing Blue Lake Invest an invite to your yacht party 1 year from now!
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