Why the Dotz Nano (ASX:DTZ) share price is up 11%

The Dotz Nano Ltd (ASX: DTZ) share price is up 10.91% after good regulatory news for the company's COVID-19 testing kits. Here's the lowdown.

| More on:
A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition

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

Dotz Nano Ltd (ASX: DTZ) shares are on the rise today after the company announced its saliva-based COVID-19 testing kit has received approval for use in the European Union (EU). At the time of writing, the Dotz Nano share price is trading 10.91% higher at 30.5 cents.

By comparison, the All Ordinaries Index (ASX: XAO) is up 0.42%.

Let's take a closer look at what the company announced.

Approval to sell testing kits in Europe

The Dotz Nano share price is racing today after the company advised the EU has granted it permission to use the CE Mark on its COVID-19 saliva testing kits.

The CE Mark is a requirement to sell medical products in the EU. Some EU countries will also have additional regulatory hurdles to clear. The pan-European governmental organisation previously granted Dotz Nano the right to use the CE Mark for its nasal swab testing kit.

With the company's saliva-based kit, a sample of saliva is swabbed from the inside of a person's mouth. After no longer than 17 minutes, the kit will indicate whether or not the test subject is carrying the novel coronavirus. This is much less intrusive than the nasal swab test, which involves one swab in each nostril, up to the sinus, and a swab of the recipient's throat. The results are also many times faster than the nasal swab test. Nasal swabs must be sent to a lab for processing and can take up to 48 hours to deliver results. 

According to Dotz Nano, the kit has a 0% false-negative rate for saliva samples containing a viral load of at least 1,250 copies per millilitre (mL). Samples containing as few as 313 virus copies per mL will induce a false-negative rate of 30%.

The test does not produce false-positive results, according to the statement.

Europe is entering a third wave

The approval of the testing kit could not come at a better time for European citizens. According to the New York Times, Europe is entering a third wave of coronavirus infections. The rise in COVID cases comes at the same time many European nations suspended the use of the AstraZeneca vaccine over blood clotting fears.

France, Germany, Italy, Poland, Greece, Czechia, Spain, Belgium, Ireland, and many other EU nations are tightening restrictions on gatherings, businesses, and general movement in response to the increasing cases.

The testing kits may also be music to the ears of many Australians still stranded in Europe. It is currently a requirement of the Australian Government that anyone flying into the country must test negative to the virus at least 72 hours before departing.

Dotz Nano share price snapshot

Over the last 12-months, the Dotz Nano share price has increased a remarkable 662.5%. Today's share price high is only half a cent off from the company's 52-week record.

Dotz Nano has a market capitalisation of around $103 million.

Motley Fool contributor Marc Sidarous 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 Market News

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Good news has these businesspeople cheering for joy, partying in a board room.
Bank Shares

2 uniquely Australian reasons why ASX 200 bank shares are outperforming global peers

Three of the Big Four ASX 200 bank shares hit new price milestones today.

Read more »

A group of friends party and dance in the desert with colourful confetti all around them.

ASX 200 to finish 2024 higher than expected: AMP

AMP says there were 3 factors that drove the ASX 200 to its new record high above 8,000 points this…

Read more »

a line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.

Why did the ASX 200 dip on the latest unemployment figures?

The labour market remains stubbornly resilient with only a minute increase in unemployment last month.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Share Market News

Buy these top ASX ETFs for income in FY 2025

These ETFs could be worth a look if you're searching for income.

Read more »

A woman ponders over what to buy as she looks at the shelves of a supermarket.
Consumer Staples & Discretionary Shares

Have ASX investors missed their chance to buy Woolworths shares?

After a sharp recovery, Woolworths shares might not be on sale anymore...

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.

DroneShield shares taught me a $29,612 lesson. Stick to your guns

If only I knew what I know now, I'd be $29,612 better off.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »