ResApp Health Limited (ASX:RAP) CEO and Managing Director Dr Tony Keating presents an overview of the company, discussing the addressable market, the benefits of ResAppDx, the effects of COVID-19, growth opportunities and the company's sleep apnoea app, SleepCheck.
Thanks everybody for joining the presentation today. It's a pleasure to be back at the Finance News Network CEO Showcase, and it's a pleasure to be able to tell the ResApp story to new investors and also provide update to our existing investors.
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So at ResApp we're really focused on delivering digital health solutions for respiratory disease. We've now spent the last five and a half years taking these technologies through clinical validation and regulatory approval. So we're now at a very exciting time for the company in that we're at the commercialisation stage. So our focus right now is leveraging that technology that we've developed, forming key partnerships with a number of partners, whether they be telehealth or in pharmaceuticals, to then bring these products into the market and really target very large market opportunities.
We have a pipeline of products. Many of you may know us as around ResAppDX, which is our smartphone based diagnostic test for respiratory disease. But we also have our SleepCheck product, which is looking at diagnosing or screening for sleep apnoea. And we actually have a deep R&D pipeline that's leveraging that audio-based technology, that cough-based technology that we use to look at diseases such as COPD. We're looking at consumer health and wearable devices.
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Just briefly on our corporate snapshot, so we're ASX listed. We have a market cap of around $70 million. We have nearly $6 million cash in the bank, which sees us with cash all the way through to the end of next year.
We have a very experienced board of directors, and I'd just like to point out the recent addition in the last six months of Dr. Michael Stein. Mike is an experienced doctor entrepreneur, and importantly was the founding CEO of Doctor Care Anywhere, one of the UK's leading telehealth providers. So he provides great insights and access into the UK and European telehealth space.
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So just stepping back and looking at respiratory diseases, many of you will go to a visit to your doctor for a cough, a runny nose. These are all respiratory related and
typically it's the most common outcome from a doctor's visit. This can be an upper respiratory tract infection, so your common cold, your pharyngitis, for a more serious condition that affects the lower respiratory tract, things like asthma, pneumonia, or bronchiolitis.
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Today when you talk to clinicians around how they diagnose you when you present with a cough, there's multiple modalities, and multiple tools used. So everything from a stethoscope through to blood and sputum tests. The challenge, the clinical challenge that you have here today is that these are actually time-consuming, expensive, they're subjective, and actually in some of the large clinical studies that we've run here in Australia and the US we've found clinicians to be relatively inaccurate, up to 30% of the time they disagree with one another when trying to differentially diagnose some of these diseases.
So any tools that we can bring can significantly help them make better diagnostic decisions.
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So ResAppDX is our point of care diagnostic test. It uses machine learning technology to analyse signatures in cough sounds. So effectively we look for signatures in cough sounds that match particular respiratory diseases. Cough sound may match pneumonia, or it may match an asthma exacerbation. The key value proposition that we bring to the table here is that we're able to use the smartphone built-in microphone. So we're effectively turning that smartphone that's in everybody's pocket into a tool that your doctor can use to help make a better diagnosis of disease. We've received some key regulatory approvals in Europe and here in Australia. And so we're very excited about what the next stage can be as we commercialise.
So if we can just step through these next few slides, just shows how the device works. We hold the device about an arm's length away from the patient. Next slide, please. We have the patient cough five times. Next slide. We ask a few details, date of birth, gender, next slide, few questions about their symptoms. And then on the next slide we form the analysis screen. So this is what the clinician sees. And in this particular case, it's a diagnosis of pneumonia, which is a lower respiratory tract disease.
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So as I said over the last five and a half years we've been solely focused on the clinical validation. We've run clinical studies here in Australia and the US. I'm not going to go into the details in this presentation, but importantly, this work is now being published in peer-reviewed medical journals.
The Australian children's results were published in Respiratory Research. The adult results were published in JMIR Formative Research, and many of these results have been presented at conferences as well.
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We all know that healthcare is going digital. And part of that is telehealth. So telehealth is when you're seeing your clinician, your doctor, over a Skype call, over a video call. And what we've found is that up to half of those telehealth consultations are for respiratory disease. And why are we seeing healthcare going digital? Well, it's a really large addressable market. Estimates in, for example, in the US estimate that 400 million visits to your GP could be replaced by a virtual visit. And then we're seeing high consumer demand. We're also very used to now ordering an Uber with our phone or now attending investor conferences over a video link.
And so now we want the same from our health care. And so studies in the US are showing that nearly three quarters of people are very interested in using telehealth going forward. So this consumer demand's also in concert with huge cost savings. So in the US they're estimating something like $400 per visit in cost savings, switching from an in-person visit to a virtual visit. And so this is seeing many different laws, many different payers, insurance companies switching to telehealth first, because it satisfies consumers demand, but also saves them cost.
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So we all know that the COVID-19 pandemic over this year has really accelerated technology adoption. And you can see here some of the numbers that have really accelerated telehealth adoption. In the US we're looking at over a billion virtual visits, telehealth visits, predicted for this year alone. And even here in Australia, we're seeing up to a third of all GP visits being performed remotely. And so this is a major opportunity for us and a major tailwind behind our business.
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So how do we fit in with telehealth? So, as I said before, about half of telehealth visits are for respiratory disease. And the problem with telehealth for respiratory disease is that the doctor doesn't have a stethoscope. So if you go into your standard GP with a cough or a runny nose or a sore chest, now the first thing they do is listen to your chest with a stethoscope. They don't have that option in telehealth. And we really provide the only diagnostic tool that is available to those clinicians to help them remotely assess respiratory conditions. We're easily integrated into a software platform because we are just software. There's no need to send out a piece of hardware. It's just a software add-on that goes into the platform. And as I'll get to in a second, we've progressed a number of key partnerships to bring this telehealth package forward.
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So this slide actually hasn't changed since we started ResApp five and a half years ago. So it's really interesting to see how these things have come to fruition. So telehealth was always our main target for ResApp. And as you can see, it's now growing to be a large portion of doctor visits. The key value proposition that we provide there is that we're really the only clinically accurate diagnostic tool that clinicians can use during a telehealth consultation. Our revenue model in this setting is to be paid per test. So on top of that telehealth consultation fee, we get paid between five and ten dollars per test from those telehealth providers. We're also working in the UK and Europe to do some health economic evaluations, which evaluate the use of ResAppDX in the clinic, in the emergency department, to see if we can improve patient flow, we can improve diagnosis, and effectively reduce costs in those EDs.
We're working with Ilara Health in Kenya in the developing world where a million children a year die from pneumonia. And we think that there's a strong value proposition to provide a low-cost, accurate, and I guess usable by non-medical personnel, tool, to help aid agencies and other doctors in those regions help diagnose these diseases. And then finally, one of the really exciting things for me is our work that we're doing with RB, which is bringing this directly to consumers. So this is being able to empower consumers to manage their own health, and then find them the next steps to take once they know what's wrong with them.
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So just over the last six to nine months, we've announced a number of very key partnerships to bring ResApp technology to market. Here in Australia, we've announced partnerships with Coviu, Phenix and WMA, all telehealth providers providing telehealth services here in Australia. The commercial deal is that we get paid five to ten dollars per test, or in the case of WMA, it's a subscription model where we get paid per covered patient. These really give us a strong foundation to then take this experience overseas. And we've done that with Medgate. So Medgate are what I would consider the most experienced telehealth provider in Europe. They were founded roughly 20 years ago in Switzerland, and provide telehealth services in Switzerland, in Germany, as well as in the Middle East and in Asia. Right now, we're working towards a pilot with them, which should start in January. And while that pilot is running, we'll be negotiating commercial terms.
I talked previously about the work with Ilara Health that we're doing in Kenya, and we have a three-month evaluation of ResAppDX running at five medical facilities in Kenya. Finally another exciting project that we have running is with AstraZeneca, AstraZeneca Japan, where we're actually using a portion of our technology, or AstraZeneca is using a portion of that technology to help monitor patients who are undergoing lung cancer therapy. And so we're excited for that validation by someone as prestigious as AstraZeneca choosing our technology. And it also provides a real good case study for taking this technology into a broader application.
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So beyond cough diagnosis, we've also been interested in sleep apnoea. One of the interesting parts of sleep apnoea is that a large portion of patients with sleep apnoea don't know that they have sleep apnoea, and this can be linked to heart disease, stroke, and type 2 diabetes. Next slide please. And the real reason that people don't know that they have sleep apnoea is that to be diagnosed with sleep apnoea, typically you have to be wired up with 10 or 12 cables, go and sleep overnight in a sleep laboratory, and then finally have a diagnosis.
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So our solution to this is SleepCheck. SleepCheck is an easy to use clinically validated app. Simply put the phone on the bedside table, wake up the next morning to a risk assessment that telling you whether you're at a low, medium, high, or very high risk of sleep apnoea.
It's available now on the app store in Europe, in Australia, as well as some Asian countries, and we're moving forward to an Android release shortly.
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So SleepCheck is a slightly different strategy to ResAppDX. SleepCheck is a direct to consumer product. So we really have three channels to expand or grow the SleepCheck market. The first is increasing awareness where we have online and social media marketing campaign launched here in Australia, as well as launched in the UK. We're expanding our availability. We recently met with the USFDA to bring set to the US and we have a really clear pathway to take SleepCheck to the US through our 510(k) submission, which we expect to do next quarter. And then finally, we're also increasing user value.
So we partner with HealthEngine to provide users with an easy option so once the SleepCheck test is done, it provides them with the next steps to book a GP appointment using HealthEngine, which is Australia's largest health care booking system. As part of that, we receive a revenue fee share with HealthEngine. So A, it gives users more value from using the product, but B, it also provides an additional revenue stream for ResApp in addition to the download fee that we get from the patient downloading the app.
So just summarising, where we are heading over the near term, on ResAppDX we have telehealth partnerships, obviously internationally, as well as here in Australia that are ongoing, and we're expecting to update the market when those business development efforts take fruition.
We have a joint development agreement that we hope to enter into with RBs. That's the next stage of the RB, the direct-to-consumer product. We expect that before the end of this year. We're expecting to file our FDA follow-up. So ResAppDX through to the US the end of this quarter or early next year. And then we have the Medgate pilot startup, and the Ilara pilot outcomes early next year. With SleepCheck we're still on track for launching Android before the end of this year, before Christmas. And we're also working towards a SleepCheck FDA submission early next year.
And finally expanding our market by providing customised handheld and wearable devices, the handhelds being very useful in a hospital setting, where you may not want to have a smartphone, and wearable devices moving us towards that 24/7 monitoring of patients. And both of those devices, we're expecting to CE mark them this quarter.
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So just in summary, we've come a very long way from where we started from. ResAppDX was our core technology, or is our core technology around acute respiratory diagnosis. Our focus today is really using those key partnerships. So there's partnerships with Coviu, with Phenix Health, with WMA and with Medgate to expand the availability of ResAppDX onto multiple telehealth platforms.
With SleepCheck we now enter the market as a direct-to-consumer device, we've got a number of partnership opportunities and additional revenue streams that we're developing with SleepCheck. And then in the long-term, we have a very strong pipeline of opportunities around chronic respiratory disease management screening, as well as a handheld and wearable devices.
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And so just in the end there's no time for questions here, but I'd be happy to answer any calls or emails for any follow-up questions that people might have. Thank you very much.Ends