Why the AnteoTech (ASX:ADO) share price is advancing 9% today

The company is set to enter new geographical markets…

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The AnteoTech Ltd (ASX: ADO) share price is accelerating to a 2-month high today. This comes after the surface chemistry company announced a distribution agreement for its EuGeni Rapid Diagnostic Platform.

At the time of writing, AnteoTech shares are swapping hands for 23 cents apiece, up 9.52%.

asx 200 share investor climbing up stairs of an upward trending red arrow into the sky and clouds

Image source: Getty Images

AnteoTech expands market presence

According to its release, AnteoTech advised it has signed an exclusive distribution agreement with Ramma Dental. This will see the EuGeni Reader platform and COVID-19 Antigen Rapid Diagnostic Test dispersed in both Greece and Cyprus.

The deal will come into effect from 1 October and be valid for an initial term of 3 years. A further 2 years can be extended by mutual agreement.

Both companies will assess large enterprise opportunities on a case-by-case basis.

Following the latest partnership, AnteoTech has secured distribution agreements across 13 countries. These include Australia, the United Kingdom, New Zealand, Thailand, Malaysia, Singapore, Philippines, Vietnam, Indonesia, Turkey, Myanmar, Greece and Cyprus.

AnteoTech is now recruiting experienced candidates based in Australia and internationally to strengthen and support its sales and marketing activities.

Furthermore, the company is working with certain distributors to complete the regulatory requirements to register the EuGeni reader and test. It noted that once the process has been completed, the distributors can commence selling the EuGeni platform in their markets.

AnteoTech CEO, Derek Thomson said:

AnteoTech is aggressively growing the sales pipeline for the EuGeni reader by locking in distribution agreements that allow us to rapidly scale-up the platform's roll-out. Similar agreements to the one we have announced today with Ramma Dental are pending which will further expand our geographical footprint and we look forward to reporting these.

Mr Thomson went on to add:

Concurrently, we are advancing regulatory approvals as quickly as possible in multiple markets. This is a critical pillar in establishing a sustainable business over the longer-term, and ensures that the EuGeni platform is recognised as the preferred and most dependable rapid test in these markets.

AnteoTech share price summary

Over the past 12 months, AnteoTech shares have jumped almost 280%, with year-to-date closing in on a 120% gain.

AnteoTech commands a market capitalisation of roughly $453.1 million and has approximately 2 billion shares on its registry.

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.

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