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).

| More on:
rising asx share price represented by covid masks hanging in front of rising red arrow

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a strong start to the trading week for the ASX 200 this Monday.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Morgans says these ASX shares can rise 20% to 45%

Let's see why the broker is bullish on these shares.

Read more »

Workers inspecting a gas pipeline.
Broker Notes

What's Macquarie's price target for Origin Energy shares?

Could Origin be primed for a turnaround?

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A happy couple looking at an iPad feeling great as they watch the Challenger share price rise
Share Market News

Good news for Aussie super funds: US to abandon 'revenge tax'

Australian investors might dodge this tax bullet after all.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why BHP, Lynas, Newmont, and Virgin Australia shares are falling today

These shares are starting the week in the red. But why?

Read more »

Bank building in a financial district.
Bank Shares

Which is the only ASX 200 bank stock Macquarie expects to outperform in FY 2026?

Macquarie forecasts a tough year ahead for the ASX 200 banks, with only one expected to outperform.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why GenusPlus, NIB, Superloop, and Titomic shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »