Link to article
Dr Boreham's Crucible: A Pfizer takeover could make Resapp a genuine chestbeater - *
Good snapshot history of ResApp to date is provided in the article.
The concluding paragraph:-
Dr Boreham’s diagnosis:
In relation to Pfizer’s offer, management’s advice is pretty much ‘take the money and run’.
Or in Dr Keating’s more formal phraseology: “We believe the material premium and certainty of an all-cash offer consideration is an attractive outcome for shareholders.”
More broadly, Dr Keating says, Resapp saw the advent of home and remote telehealth well before anyone else.
“The world is shifting to testing at home, whether it’s for ’flu or diabetes … we are leading the field in cough-based analysis.”
Give that, some investors might be wondering whether they’re missing out on much more substantial upside. Apparently, some have voiced their ire on social media to that effect.
Maybe they’re right, but Resapp’s modest revenue and cash position means the full commercialisation path would be a bridge too far without some sort of third-party support.
Pfizer’s line is that the proposed acquisition (and research collaboration) adds to the company’s growing capabilities in a new era of digital health.
But the $US300 billion market cap Pfizer could well be saying: “100 million Aussie dollars is chump change to us, so it’s worth a shot, goddamit.”
Time will tell, but we’re not holding our breath.
We expect the acquisition will be completed without the need for Pfizer to cough-up more dough, and the sun will set on Resapp’s topsy-turvy eight-year ASX adventure.
Well, let's hope the sun will NOT set on ResApp's ASX adventure as we can have a hand in ensuring it will continue. In this poker game, our hand is a Royal Flush, do we give it away to a bluff?
