Australia's ResApp Takeover Bid Undervalued - Read What Pfizer Did - Pfizer (NYSE:PFE)

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

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