ResApp have an efficient and scalable solution to help manage a global pandemic via deployment on smartphones. The disruptive technology adds a new dimension for monitoring your daily health and compliments current diagnostic systems such as RAT / PCR and Temperature checks.
So what is it worth to the Australian economy? As a means of early COVID detection it offers Government and its citizens the best of both worlds.
- Individuals can easily test themselves daily via their own smartphone or ipad once deployed.
- The cost of each RAP test will be a fraction of a $10 RAT or $40 - $100 PCR test.
- The 30 second RAP test can eliminate current bottlenecks at COVID testing centres.
- Removes logistical constraints and point of sale price mark ups - eg. at chemists
- The technology can be deployed in remote locations and compliment tele-health diagnosis,
- The technology removes the risk of misdiagnosis when compared to using a stethoscope
- The technology digitally describes your respiratory fitness - we all need to breath!!!!
Best practice workplace testing measures call for Daily Rapid Antigen Testing (RAT) of employees to avoid spreading COVID within the workforce. In an ideal world, if the entire population could be tested for COVID as part of a national disease surveillance & management program then more efficient and targeted control of outbreaks could occur with the limited medical resources society has available.
For simplicity, assuming the Australian population is 25 million and the cost of a RAT is $10 per test, so to test 80% of the population (20 million) it would cost $200 million per day or $73 billion per year. Hence, using RAT's is logistically, environmentally damaging and uneconomic for the economy. Therefore, not a viable option. The ResApp disruptive technology will reduce the cost of COVID testing to a fraction of today's expenses. It is a real game changer!!!!
If a ResApp Health Ltd RAP test cost $1.00 per test then assessment of 80% of the population would be $20 million per day or $7,300 million per year is conceivable, although still a high cost to the Australian economy. A RAP at $0.10 per test is $2 million per day or $730 million per year - an acceptable cost to Australia's health budget, or a RAP at $0.01 per test is $0.2 million per day or $73 million per year - easily acceptable cost to the Australian economy but commercially un-viable.
A sweet spot for the cost of a RAP could be between 10 cents to less than $1.00 per test when mass screening for the whole country via a government program, if initiated.
However, in a commercial setting for workplace testing, it is conceivable each business could allocate up to $1,000 per employee for "Respiratory Fitness" testing on a daily basis. This equates to $4.17 per test per employee (eg. $1,000 pa / 48 weeks / 5 day week). 60% cheaper than a RAT.
The Australian Bureau of Statistics indicates 13.4 million people were employed during Feb 2022. Therefore, RAP testing cost could equate to $56 million per day (13.4m x $4.17) or $13.4 billion per annual for the Australian workforce. Even significantly discounting this to 10% of $13.4 billion annual fee or $0.417 per RAP test then it still costs industry $1.34 billion per year to test the workforce. Note: the Australian workforce only represents 54% of the Australian population, so the non-working population still needs to be tested as well, thus the desire for Government to deploy a national program could be on the radar if full population surveillance to mandated.
Overall, the revenue stream from this new disruptive technology for workplace testing (should it be approved) on a daily basis is easily worth upwards of $1.3 billion to $13.4 billion per year to ResApp's coffers or is that "coughers". This translates to $1.50 per RAP share to $15.60 per RAP share for the Australian market. Also, this is a Price Earning ratio of 1.0, thus further upside is possible as a biotech company. eg. CSL's PE ratio is 33.
Not to forget, the globally market is 315 times Australia's population. (World population is 7,885 million people) - now the revenue dollars begin to flow once deployed globally. Expect further competition, but 8 cents per RAP share is now looking cheap.
