Why the AnteoTech (ASX:ADO) share price is rocketing 28% higher

The AnteoTech Ltd (ASX: ADO) share price is rocketing higher today after announcing a design freeze on its COVID-19 Antigen Rapid Test (ART).
The post Why the AnteoTech (ASX:ADO) share price is rocketing 28% higher appeared first on Motley Fool Australia. –

rising asx share price represented by covid masks hanging in front of rising red arrow

The AnteoTech Ltd (ASX: ADO) share price is rocketing higher today. This comes after the company announced a design freeze on its COVID-19 Antigen Rapid Test (ART) following successful results. At the time of writing, the Anteotech share price is up 28.21% to 10 cents.

What’s driving the AnteoTech share price?

The AnteoTech share price is having a stellar day today after the company advised it has completed the final design of its COVID-19 ART.

According to the release, the company completed its development processes for the product within time and budget constraints. While traditional methods of testing COVID-19 is done through a nasal swab, AnteoTech conducted successful testing on human saliva.

Undertaken in a laboratory, the company took artificial mucus and placed inactivated SARS-CoV-2 virus within it. The test simulated real-world examples with seven different viral loads used. To ensure consistency within the results, each viral load was tested six times. The process of taking a sample on the COVID-19 ART took 15 minutes with less than one minute to produce a result on the reader.

Contract news

AnteoTech revealed that it has signed key supply agreements to manufacture its products at multiple sites. Tapping into the overseas market, the company signed a memorandum of understanding (MOU) with Spain’s Operon for a detailed manufacturing contract. It is anticipated the agreement will be signed in 2021.

In addition, discussions have commenced with Ellume to manufacture its products in Brisbane, Australia. As talks are ongoing, it’s expected that the prior work completed with Operon will support planning requirements with Ellume.

Lastly, AnteoTech stated that the Therapeutic Goods Administration (TGA) in Australia has approved clinical trials for its COVID-19 ART. Talks are progressing with the Victorian Infectious Diseases Reference Laboratory (VIDRL), with the study expected to begin in December.

What did management say?

AnteoTech CEO, Mr Derek Thomson, commented on the positive achievement and further developments, saying:

This is an exciting and timely development in the rollout of our COVID-19 Antigen Rapid Test. A saliva test is a less invasive and more comfortable test for patients, and only a few have been successfully developed and commercialised.

The next phase is to validate our results in a clinical trial, and we are now seeking trial sites and collaboration partners for this step. If the results of the saliva trial are favourable and available in time, we are aiming to submit an approval application to the Therapeutic Goods Administration for a COVID-19 ART test capable of using either/or saliva and nasopharyngeal swab samples.

AnteoTech market outlook

As pharmaceutical companies advance their development for a COVID-19 vaccine, AnteoTech believes rapid testing will still be needed. This is on the basis that, while a vaccine may prevent community transmission, the future is unknown regarding its effectiveness.

In light of this, the company predicts population screening in commercial and social gatherings could become mandatory. It states that testing will likely become the norm for people to travel across countries, whether it be for business or leisure.

Where to invest $1,000 right now

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.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

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 Why the AnteoTech (ASX:ADO) share price is rocketing 28% higher 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!