The company has received Therapeutic Goods Administration approval for its paediatric cough diagnostic. This follows CE Mark approval for both children and adults which allows the company to market the device across Europe.
The bigger prize, achieving US FDA approval, is expected late in 2019 or early 2020. Morgans continues to fully risk commercial outcomes until there is insight into initial reception across Europe and Australia.
There have also been positive results in the company’s sleep apnoea study, showing high rates of accuracy when compared with at-home comprehensive sleep studies.
Speculative Buy (Add) maintained. Target is raised to $0.32 from $0.28.
Sector: Health Care Equipment & Services.
Target price is $0.32.Current Price is $0.27. Difference: $0.05 – (brackets indicate current price is over target). If RAP meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
