Rats! How have AnteoTech (ASX:ADO) shares already gained 30% in February?

AnteoTech is riding on the back of RATs in February…

| More on:
Woman holding a rapid antigen test.

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

  • AnteoTech shares are up 30% in February after a disastrous January
  • Multiple announcements regarding changes to COVID-19 tests could be fuelling the excitement
  • Rapid antigen tests (RATs) are now compulsory when seeking entry to hospitals in Western Australia

The AnteoTech Ltd (ASX: ADO) share price embraced February with arms wide open.

So far, the new month has treated the biotechnology company much better than January. A month that saw AnteoTech shares plunge 36% as the Therapeutic Goods Administration (TGA) sought more information from the company for its EuGeni Reader and COVID-19 Rapid Diagnostic Test (RDT).

Since the beginning of February, the AnteoTech share price has climbed 30%. For context, the S&P/ASX 200 Index (ASX: XJO) is only up 3.1% over the same period.

At market close, ASX-listed AnteoTech finished the day up 13.04% to 26 cents apiece.

Although, investors might be scratching their heads wondering what could be behind this recovery. It's time to take a closer inspection of what's been happening.

ASX investors' change directions on AnteoTech

Market sentiment towards AnteoTech was impacted in January. The disruptions to the company's study timeline created by the Omicron outbreak depressed the share price.

In addition, the market was unimpressed with its quarterly business update. Upon the release of its update, AnteoTech shares continued to sell-off.

Fortunately, AnteoTech shareholders have been treated to a few news items that have been well received this month. Firstly, reports suggested the Federal Government might allow the use of unapproved rapid antigen tests for personal use in Australia.

Secondly, the government unveiled it would make COVID-19 tests tax-deductible. Several ASX-listed companies, including AnteoTech, experienced a jump in share prices on the news. A caveat is that the deduction only applies to COVID-19 tests used for work-related purposes.

Lastly, rapid antigen tests (RATs) are now compulsory for anyone arriving at Western Australia hospitals as of yesterday. Health Minister Amber-Jade Sanderson revealed that the screening process will be a requirement before entering hospitals.

Perhaps AnteoTech investors are viewing this as a positive for RAT demand.

AnteoTech share price snapshot

ASX-listed AnteoTech has been riding a rollercoaster over the past 12 months. In fact, shareholders have needed to grit their teeth through violent swings between 50 cents and 16 cents. Nonetheless, AnteoTech shares have provided a 49% return over the last year.

Despite the rise to prominence, the company continues to be a loss-making operation. Additionally, AnteoTech's revenue for the trailing 12-months as of 30 June 2021 was $2.3 million. This is typically considered to not be a meaningful amount.

Motley Fool contributor Mitchell Lawler 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 Healthcare Shares

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Healthcare Shares

Broker says this ASX 200 biotech stock is a top buy

Let's see what Bell Potter is saying about this biotech.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why CSL shares are a buy today despite the looming Trump tariffs

A leading expert believes CSL shares are still trading for a bargain today. Here's why.

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Healthcare Shares

Why did the Telix share price just crash 16%?

Investors are sending the Telix share price plunging today. But why?

Read more »

Broker analysing the share price.
Healthcare Shares

Expert: 2 ASX healthcare stocks to avoid before reporting season

Not all healthcare stocks are created equal.

Read more »

A group of people in a corporate setting do a collective high five.
Healthcare Shares

Should I buy Pro Medicus or CSL shares ahead of earnings season?

The ASX healthcare sector may be currently undervalued.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Why Mesoblast shares can keep storming higher

More big returns could be on the way for buyers of this high risk stock according to Bell Potter.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

couple having a happy discussion with a banker
Healthcare Shares

Expert: 4 ASX healthcare stocks to buy ahead of reporting season

Could these ASX healthcare stocks be good additions to your portfolio?

Read more »