ResApp crashes on study results

Shares in medical tech company ResApp Health plummeted 77 per cent today on disappointing results of a clinical study on its ResAppDx technology.

In a statement today, ResApp chief executive Tony Keating said the study revealed many issues in the quality of cough recordings, and was not what the company had expected.

“It is obvious that a large number of tests have been affected by procedural anomalies and we now need to go through each case one by one to fully understand the results,” he said.

“I am confident that we can add another layer of detail to the next set of study protocols to deliver robust results and that we have adequate funding to complete a second US paediatric pivotal clinical study this US winter as well as continue and complete our adult program, including our US adult pivotal study which is also set to begin this US winter.”

Following the announcement, shares in the Perth-based company fell 77.4 per cent to 7 cents by the close of trade.

In the data review, the company said it had identified at least two issues with the clinical data from the ‘Smartcough’ study.

“Contrary to instructions and training, a high number of patients were treated before clinical research staff recorded their cough sounds,” it said.

“A high number of recordings were also found to contain a second person’s cough sounds or an unacceptable amount of background noise or interference.

“These issues are known to affect cough sound analysis and their presence has skewered these preliminary results.

“A preliminary analysis indicates that the study is unlikely to meet its pre-defined end points for diagnosis of childhood respiratory disease.”