Rhinomed (ASX:RNO) share price tries following Starpharma’s path to COVID glory

The Rhinomed Ltd (ASX: RNO) share price surged to a six-month high as it takes a leaf out of the Starpharma Holdings Limited (ASX: SPL) playbook.

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The Rhinomed Ltd (ASX: RNO) share price surged to a six-month high as it takes a leaf out of the Starpharma Holdings Limited (ASX: SPL) playbook.

The Rhinomed share price rallied 84% ahead of the market close to $0.14 after management said it was developing a COVID-19 nasal swab.

In contrast, the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are flip flopping on both sides of breakeven.

Rhinomed share price charges higher on COVID test

Any company involved in a coronavirus test or treatment have seen their share price rocket. The Starpharama share price has also been on a tear after it revealed plans for a nasal spray that works against the virus that causes COVID-19.

Rhinomed’s “high yielding” swab that can collect samples from the nose to test for the presence of upper respiratory tract diseases, including influenza and coronavirus strains.

While there are plenty of swabs that are currently available on the market, Rhinomed believes its expertise in making anti-snoring and sleep improvement nasal devices will help it create a superior product.

A better mousetrap?

The company is designing a swab that will be more comfortable to use than standard swabs and can be self-administered.

The new swab will also collect samples from both nostrils at the same time and over a greater surface area.

“The vast majority of existing nasal swabs require a healthcare worker to collect the sample, which places the healthcare worker at a real risk of infection,” said the company in its ASX statement.

“The use of healthcare workers and the requisite personal protection equipment (PPE) also comes with significant cost.”

Next steps

Rhinomed is exploring manufacturing options. This could include 3D printing solutions, existing offshore manufacturing resources and local manufacturing alternatives.

The swab will be registered in Australia, US and in the European Union as a Class 1 medical device. The company has begun defining the protocol for a clinical trial to be carried out at a leading Melbourne hospital.

RNO share price up investors’ nose

But even with the big gain in the stock today, the stock is still nursing a 40% loss in value over the past year.

In contrast, other medical device stocks have performed much better. The RESMED/IDR UNRESTR (ASX:RMD) share price gained 23% while the Somnomed Limited (ASX: SOM) and Nanosonics Ltd. (ASX: NAN) share price dipped around 8% each.

Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and Starpharma Holdings Limited. The Motley Fool Australia has recommended Nanosonics Limited, ResMed Inc., and Starpharma Holdings Limited. 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.

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