Pfizer Australia again revises share offer on back of ResApp COVID cough test fail

Pfizer Australia’s ongoing pursuit of WA-founded ResApp Health has had its fourth price adjustment with the suitor now lifting its offer, taking it to 20.8¢-a-share, up from 14.6¢.

In a statement to the ASX on Wednesday, the digital health company said the proposed revision would match the preferred valuation range of 14.6¢ to 27.9¢ by BDO Corporate.

Pfizer’s initial 20.7¢ a share offer was revised down to 14.6¢-a-share after the target company failed to repeat the success of its smartphone-based COVID screening test when it detected the virus in nine out of 10 infected patients by recording cough sounds.

ResApp said in its quarterly report to June 30 that while it remained confident the virus had a unique signature that can be found in the audio of cough sounds, further research would need to be carried out to increase its algorithm performance.

Customer receipts for the quarter totalled $4.2 million — up from $178,000 in the previous quarter — and were driven by $4m of receipts as part of a Pfizer research and development licence agreement.

ResApp directors have unanimously recommended shareholders vote in favour of the revision because it was in their “best interests”.

Shares in ResApp were up 54.17 per cent at 18¢ at 11:00am.