The Atomo Diagnostics Ltd (ASX: AT1) share price has risen today following its annual general meeting presentation to investors.
During midday trade, shares in the medical diagnostics company are up 3% to 34 cents. In comparison, the All Ordinaries Index (ASX: XAO) has dropped 0.8% to 6,213 points.
So, let's take a look at what Atomos said in its AGM.
Key AGM highlights
- Revenue grew to $5.37 million, representing an increase of 10 times FY19's annual sales. This was driven by the acceleration of the HIV rollout via Mylan, and the significant demand for COVID-19 test kits.
- Earnings before interest, tax, depreciation and amortisation (EBITDA) recorded a loss of $2.38, down from $4.08 million in FY19.
- Cash receipts in Q1 FY21 were $3 million, underpinned by sales from its COVID-19 antibody OEM business.
- Q1 sales reached approximately $2.5 million.
- Cash outflows are primarily related to building inventory levels, supply chain replenishment, investment in manufacturing, and research and development.
- The company reported $26.3 million in cash for the end of the September period.
How is Atomo progressing for FY21
Atomo advised it has completed a deal with Access Bio for its COVID-19 antibody testing devices. The agreement with the United States-based company will see an initial order of 250,000 units, supporting pending product launch.
Across the Pacific, DIVOC received an import permit for the Indian market, where evaluation for the product has been submitted. Product registration is anticipated to be achieved sometime in the current quarter.
In Australia, the Therapeutics Goods Administration (TGA) has approved the COVID-19 antibody test. Distribution agreements were signed with Health Solutions Group Australia for rapid deployment. Production capacity increased to 750,000 devices per month.
What's next for Atomo?
The company listed its strategic priorities in continuing the expansion of its device sales via new OEM contracts. In completing this objective, Atomo appointed a US-based business development resource and started an OEM engagement program.
Launching new finished products in high value segments is also a major key milestone the company wishes to achieve. Atomo is negotiating with its partners on a number of potential products for existing markets.
Non-blood rapid testing is also seen as a huge avenue for growth. Emerging diagnostic technologies are predicted to compliment the current portfolio, leading to additional revenue streams.
How has the Atomo share price performed?
The Atomo share price isn't far off its all-time low of 28 cents reached in June this year. Positive developments did leave the company's share momentarily higher until late August. However, investor confidence has recently been slightly weak.
Only time will tell if Atomo can reach its all-time high of 63 cents from listing on the ASX back in April.
