AnteoTech (ASX:ADO) share price gains 42% in a week amid RAT race

The demand for rapid antigen tests appear to be pushing the company's shares higher.

| More on:
Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

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

Key points

  • The AnteoTech share price soared again today, taking its gains over the past week to 42%
  • Demand for rapid antigen tests is increasing
  • The company's CEO is hitting media headlines this week

The AnteoTech Ltd (ASX: ADO) share price has been skyrocketing amid momentum for COVID-19 rapid antigen tests.

Shares in the company soared 7.25% on Thursday to close at 37 cents apiece. That's a 42% gain on last Thursday's closing price.

Let's take a look at what may be impacting AnteoTech shares.

What is happening at AnteoTech?

The AnteoTech share price is surging amid the rising demand for rapid antigen tests in Australia. In fact, the company has been hitting media headlines in recent days as it seeks approval for local production.

CEO Derek Thomson told the Courier Mail he has been seeking permission to manufacture the tests for nearly two years. He said:

We could supply millions now, it's a good volume and it would certainly make a dent in the Queensland need at the moment.

The company has been producing rapid antigen tests in the European market including Spain while it waits for approval from Australia's Therapeutic Goods Administration.

My Foolish colleague James noted on Friday the company plans to ramp up local production in the near future, and sales in 2022 could rocket due to RAT shortages. The AnteoTech share price jumped on the news.

Speaking on the pending TGA approval, Thomson told the Courier Mail:

We're supplying them some more information, we've continued to do that and we believe that we're in the final stages of our of our processing.

We would have liked it to go quicker but we understand that they have a responsibility and we're working with them as best we possibly can.

Thomson also appeared on the Today Show on Thursday morning, where he said he believes the company will get through the TGA approval process "soon".

Rapid antigen tests have been dominating media headlines in recent weeks, with other Australian companies also awaiting approval on the tests.

Among these are Lumos Diagnostics Holdings Ltd (ASX: LDX) and unlisted Brisbane-based diagnostics developer Ellume.

AnteoTech share price snapshot

The AnteoTech share price has returned 221% in the past year. This year to date, it has gained around 21%, while it has soared almost 95% in the past month.

Meanwhile, the S&P/ASX 200 index (ASX: XJO)'s has returned 8.45% in the past year.

Motley Fool contributor Monica O'Shea 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.

More on Share Gainers

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »

Woman holding gold bar and cheering.
Gold

Why are ASX gold shares rebounding today?

ASX investors are going for gold today.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

Why Meteoric Resources, Resolute Mining, Sonic Healthcare, and TechnologyOne shares are roaring higher

Let's see why investors are getting excited about these shares on Tuesday.

Read more »

Two kids in superhero capes.
Small Cap Shares

Guess which 2 ASX small-cap shares just rocketed 50%+ on big news!

Investors are sending these two ASX small-cap stocks through the roof on Tuesday.

Read more »