I am convinced mhealth can make a significant difference in health care. I’m so confident I’ve put my money where my mhealth mouth is and bought into two ASX listed mhealth companies: ResApp Health and Simavita.
ResApp Health allows patients and clinicians to “Instantly diagnose and manage respiratory disease using only your smartphone”. No other technology is required, which means testing for respiratory diseases (e.g. pneumonia, croup, bronchiolitis, etc) will be hugely more convenient and lower cost. Respiratory disease is a big, global problem – +700m doctor visits per year globally according to the company. The underlying technology was developed and commercialised by UQ and listed via the back door in July after raising money from a Perth-based HNWI. They’re currently completing randomised controlled trials to prove their technology works. If the results continue to be successful they will apply for regulatory approval (FDA, TGA, etc) and then make money by providing tests direct to the healthcare provider and/or patient, or via a partnership with existing telehealth providers (Teladoc, Dr Now, American Well, etc) or by licensing to device manufacturers/telcos.
Simavita provides “continence management solutions” to aged care facilities, hospitals and the like. We all hear about how the populating is aging and as that happens management of continence will continue to be a big, global problem. Simavita’s technology means staff will know when a resident needs to be changed, which will help avoid complications like urinary tract infections, pressure ulcers and skin damage. Simavita recently announced a contract with Queensland Health to monitor rehabilitation patients in two hospitals.
Above is a chart of how their stock prices have performed since I bought into these companies. There is a lot of volatility in the prices because the market for these shares is relatively illiquid (i.e. low volume of trades moves prices around) and the companies are very small. The latter means that just about any announcement or significant trading activity can move the stock price significantly.
So will these investments work out for me? Obviously I don’t know. So to manage that risk I’ve taken very small positions (<$1,000 each). Given the speculative nature you probably don’t want to invest in these companies, even if you agree with me that mhealth will make a difference and these investments will be successful. For me these small investments are about cheering on these Australian mhealth startups with more than just a passing interest. I’ll post updates when I see interesting developments.