- Following an independent expert report suggesting that Australia-based ResApp Health Limited's current share price was undervalued, Pfizer Inc PFE bolstered its takeover bid.
- According to a Market Herald report, Pfizer will now offer 20.7 cents/share for ResApp if it can repeat the success of its cough-based COVID-19 detection test as per its pilot study in March.
- If not, Pfizer will drop its offer to 14.6 cents/share. The new bid is higher than Pfizer's initial offer of 11.5 cents/ResApp share, supported by ResApp's board.
- The revised takeover bid comes after an independent expert review valued ResApp shares at between 14.6 cents - 27.7 cents, with a preferred value of 20.7 cents.
- The top end of the new offer values ResApp at almost $180 million, almost double Pfizer's initial $100 million valuation.
- Results read-out for ResApp's cough test is slated for around June 20.
- Market Herald writes that ResApp is expected to dispatch the scheme booklet for the Pfizer takeover in July, with the deal to be implemented by mid to late August.
- In March, ResApp announced positive results for a new cough audio-based COVID-19 screening test that only requires a smartphone.
- In a pilot trial of 741 patients (446 COVID-19 positive), ResApp's screening test was found to correctly detect COVID-19 in 92% of people with the infection.
- The test uses machine learning to analyze the sound of a patient's cough.
- Price Action: PFE shares are down 0.27% at $47.78 during the premarket session on the last check Tuesday.
- Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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