Shares in ResApp Health, the Australian company developing a smartphone app for the diagnosis and management of respiratory diseases, took off in early trade.
A short time ago, they were up more than 23% to $0.083.
ResApp has been under pressure since a study into the app in the US came back with negative results earlier this month.
However, today the company announced that further analysis of the data confirms that the study was not a representative evaluation of the app.
ResApp plans to restart the study in the US winter.
“Having completed a review with all relevant parties it is clear that the first US study was not a reliable evaluation of ResApp’s algorithms and that the top line results do not reflect the actual performance of ResApp’s technology,” says CEO Tony Keating.
“The environment and the clinical diagnostic procedures in busy US hospitals differed more than expected from those encountered during our Australian studies.
“We are confident that the next study will be robust.”
The Perth-based company, formerly called Narhex Life Sciences, raised $4 million in 2015 to develop technology at the University of Queensland funded by the Bill and Melinda Gates Foundation.
Doctors usually rely on hearing a signature sound through a stethoscope. Diagnosis via smartphones means doctors can consult online or over the phone.
ResApp holds the exclusive license to develop and commercialise the intellectual property which uses machine-learning technology.