Insights

Atomo (ASX:AT1) share price rockets 10% on new agreement

The Atomo Diagnostics Ltd (ASX: AT1) share price has surged up after a deal was announced to distribute its COVID-19 test kit in India.
The post Atomo (ASX:AT1) share price rockets 10% on new agreement appeared first on Motley Fool Australia. –

boy dressed in business suit with rocket wings attached looking skyward

The Atomo Diagnostics Ltd (ASX: AT1) share price is up after a deal was announced to distribute its COVID-19 test kit in India. The news has sent the Atomo share price rocketing 10% higher to 38 cents at the time of writing.

What does Atomo do?

Atomo Diagnostics is an Australian medical device company that supplies rapid diagnostics tests (RDTs) and devices to the global diagnostics market. Atomo’s devices are intended to simplify testing procedures and usability for professional and untrained users.

The company has supply agreements in place for tests targeting a range of infectious diseases. These include HIV, COVID-19, and viral vs bacterial differentiation.

New sales agreement

Atomo announced a deal with DIVOC Laboratories, an Indian specialist diagnostic company, to launch its AtomoRapid COVID-19 antibody test in India.

Under the agreement, Atomo will provide 77,000 antibody test kits upon DIVOC obtaining product registration approval for professional use. DIVOC is expected to receive approval in Q2 FY21.

DIVOC will distribute the test kits on a non-exclusive basis to government, corporate, and India’s established home-visit network.

The agreement will be terminated should DIVOC fail to order one million units in the 12 months following regulatory approval. In return, Atomo will receive a fixed transfer price per unit and a percentage of revenues on final product sales.

The non-exclusive sale of its COVID-19 rapid test in India is a further expansion of its agreement with NG Biotech.

Atomo co-founder and managing director John Kelly was pleased with Atomo’s global reach. He said:

We are delighted to be able to offer our antibody rapid test in another large international market. Rapid testing forms a significant pillar of India’s response to managing the COVID-19 pandemic with the numbers of daily rapid tests increasing significantly in recent months.

Our Indian partner is a high-quality provider of diagnostic services, being one of the few laboratories in India that has been able to secure NABL accreditation. We are confident of their ability to roll out the AtomoRapid COVID-19 antibody testing across a number of high value channels in India in the coming months.

Is the Atomo share price good value?

I think Atomo has seized an opportunity that could expand its revenue significantly in the coming months. India has a high ranking for daily COVID-19 infections, hitting more than 90,000 cases in a day this month, and 5.65 million cases in total.

The new agreement is another milestone for the company which listed on the ASX in April this year. At a market capitalisation of $213 million, the Atomo share price has moved little since its Q4 update in June. But that could change in future depending on the success of its agreements.

I would encourgae investors to add Atomo to their watchlist and monitor its ongoing developments.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Atomo (ASX:AT1) share price rockets 10% on new agreement appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!