Why the Rhinomed (ASX:RNO) share price is soaring 20% today

The company’s shares hit a multi-year high in morning trade…
The post Why the Rhinomed (ASX:RNO) share price is soaring 20% today appeared first on The Motley Fool Australia. –

The Rhinomed Ltd (ASX: RNO) share price is on the move during mid-morning trade. This comes after the medical device company provided the market with a positive release in regards to its Rhinoswab product.

At the time of writing, Rhinomed shares are up 20% to 45 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) has travelled 0.60% higher to 7,704 points.

What did Rhinomed announce?

Investors are fighting to get a hold of Rhinomed shares after the company announced a deal with the Victorian government.

According to the release, Rhinomed advised the Victorian Department of Health has made an initial purchase order for 1 million Rhinoswabs.

Pleasingly, this follows the recent New South Wales Health Pathology order of one million Rhinoswabs on 11 August.

Rhinomed’s Rhinoswab technology is stated to be more comfortable and easier to use than the standard nasal swab. The medical product is able to capture a larger sample, and can quickly process the data, thus reducing queues and waiting times.

As a result of the orders, Rhinomed is ramping up its manufacturing capabilities to accommodate the growing demand.

The Rhinoswab is registered with the United States Food and Drug Administration (FDA), Australian Therapeutic Goods Administration (TGA) and has a European CE mark.

Rhinomed CEO, Michael Johnson commented:

We are pleased to receive further validation of the Rhinoswab from the Victorian Government.

The Rhinoswab can make a meaningful impact on the SARS-CoV-2 testing process and enable more people to be tested quickly and easily. With well over 2 billion SARS- CoV-2 tests having been carried out globally over the past 18 months (close to 26 million in Australia alone), there is a major opportunity for Rhinoswab to radically improve the testing process, clinical outcomes and user experience…

The Victorian government order represents approximately 35% to 45% of unaudited FY21 revenues of $3.9 million.

About the Rhinomed share price

Since this time last year, Rhinomed shares have accelerated 450%, with year-to-date gains above 175%. The company’s share price reached a multi-year high of 48.5 cents today before some profit-taking took place.

Rhinomed presides a market capitalisation of roughly $111.6 million and has around 253 million shares on its books.

The post Why the Rhinomed (ASX:RNO) share price is soaring 20% today appeared first on The Motley Fool Australia.

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

Before you consider Rhinomed, 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 Rhinomed wasn’t one of them.

The online investing service he’s run for nearly 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 August 16th 2021

More reading

Why the Rhinomed (ASX:RNO) share price is rocketing 23% today
Why Core Lithium, IRESS, Lake Resources, & Rhinomed are storming higher

Why the Rhinomed (ASX:RNO) share price is rocketing 90% higher today

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.

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!