The AnteoTech Ltd (ASX: ADO) share price has rocketed more than 15% higher this morning.
Shares in the Aussie biotech are on the charge after an update on its rapid COVID-19 test.
Why is the AnteoTech share price surging?
The strong upswing comes after a positive update on AnteoTech's rapid COVID-19 test. The Brisbane-based biotech reported the outcome of the COVID-19 Antigen Rapid Test (ART), conducted and reviewed by the Victorian Infectious Diseases Reference Laboratory (VIDRL). The VIDRL forms part of the highly respected Peter Doherty Institute for Infection and Immunity.
AnteoTech is seeking to develop an innovative point of care rapid COVID-19 test. The AnteoTech share price previously surged in February after a major customer, Ellume, secured a US$231.8 million contract with the US Department of Defense.
The VIDRL study included validation of the analytical analysis and clinical study to assess the test's accuracy and performance. Overall COVID-19 ART sensitivity was recorded at 97.3%, with 179 of 184 positive samples identified.
Specificity came in at 99.6%, with 259 of 260 negative samples identified. The study also did not find any cross-reactivity across other common coronaviruses such as MERS, Flu A, and Flu B. Today's announcement reported that the test is "very specific" based on this lack of false positives.
The AnteoTech share price has surged higher on the study update news this morning. AnteoTech CEO Derek Thomson was upbeat in today's market announcement.
We are delighted to have achieved this significant milestone in the development of AnteoTech's first COVID-19 ART. The study enables us to be compliant with WHO guidelines for market use of our COVID-19 ART.
As at Friday's close, AnteoTech boasted a market capitalisation of $421.6 million. The AnteoTech share price has jumped to $0.26 per share at the time of writing, up 18% from Friday's $0.22 closing price.
Foolish takeaway
The AnteoTech share price has surged higher this morning on its latest rapid COVID-19 test update. This follows February's share price surge on the back of Ellume's major contract with the US Department of Defense.
The Aussie biotech share's addition to the All Ordinaries Index (ASX: XAO) also comes into effect today.
