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.
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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.
