Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today

Atomo is cementing its presence across key markets.
The post Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today appeared first on The Motley Fool Australia. –

Key points

Atomo shares accelerate on back of New Zealand approval for its antigen test
Businesses and pharmacies allowed to supply COVID kit for sale
Atomo has secured up to 20 million units for Australia and New Zealand

The Atomo Diagnostics Ltd (ASX: AT1) share price is racing higher during Thursday trade. This comes after the company announced it has received approval to expand its product into another key geographical market.

At the time of writing, the medical device company’s shares are up 17.5% to 23.5 cents apiece. However, in early trade they were up 25% at 25 cents before partially retreating.

Atomo expands geographical presence

Investors are driving up the Atomo share price after digesting the company’s latest positive news.

In a statement to the ASX, Atomo advised its COVID-19 antigen test has been approved for use in New Zealand.

The green light was given by the New Zealand Ministry of Health under the New Zealand COVID-19 public health response.

The country is currently on ‘red alert’ status after the Omicron variant continued to accelerate across key cities.

This follows one of the most significant turning points of New Zealand’s pandemic, with the government accepting the virus. The suppression strategy is a major psychological shift from the previous pathway of aiming to achieve COVID zero.

The COVID-19 antigen test can be used by professionals such as healthcare workers and government agencies or for self-test use.

New Zealand-based businesses and pharmacies are all permitted to supply, distribute, and sell the Atomo COVID-19 antigen test.

To support demand, Atomo secured up to 20 million COVID-19 rapid antigen tests for Australia and New Zealand in 2022.

The company revealed it renegotiated its supply agreement with United States manufacturer, Access Bio, last August.

Commenting on the news driving the Atomo share price higher, managing director John Kelly said:

We are excited the Atomo antigen test has received approval for use in New Zealand and we have now commenced commercial discussions related to supply of the product to the New Zealand market.

Atomo share price summary

Over the past 12 months, the Atomo share price has moved on a rollercoaster ride to post a loss of almost 20%.

It’s worth noting that despite today’s strong gains, the company’s shares are down by more than 21% in 2022.

Based on today’s price, Atomo has a market capitalisation of roughly $100.13 million, with approximately 408.69 million shares on issue.

The post Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Atomo right now?

Before you consider Atomo, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Atomo wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Why has the Atomo Diagnostics (ASX: AT1) share price surged 50% since Christmas?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!