The Anteotech Ltd (ASX: ADO) share price surged 8% higher at the open after a key update on European regulation for its rapid COVID-19 test.
At the time of writing, the AnteoTech share price is trading at 27 cents, up 6%.
Why is the AnteoTech share price surging?
AnteoTech announced that it had received Conformite Europeenne (CE) Mark registration for its EuGeni Reader and in vitro rapid diagnostic test, COVID-19 Antigen Rapid Test (ART).
The EuGeni COVID-19 ART is a single-use rapid test for health professionals to test for suspected COVID-19 infection. The proprietary test has an overall sensitivity of 97.3% and specificity of 99.6%, according to AnteoTech.
The CE Mark registration means the EuGeni Reader and the COVID-19 ART conform with health and safety standards for the European Economic Area (EE) and the United Kingdom. It's an important step forward for the Queensland-based Aussie biotech company.
That's been reflected in the AnteoTech share price surge we've seen this morning. Thanks to the CE Mark registration news, shares in the biotech company have rocketed 8% higher at the open.
What it means
With the latest approvals, AnteoTech can now sell its EuGeni Reader and COVID-19 ART. The company hopes to "deliver a high performing and high sensitivity test".
AnteoTech CEO Derek Thomson said the company was "delighted to have achieved this significant milestone in our strategy to become a legal manufacturer of rapid tests". There are also other strategic plans in the works. AnteoTech hopes to support sales with a "saliva use case and new COVID-19/Flu A/Flu B Multiplex test".
The AnteoTech share price has continued to search higher amid the pandemic. Before Monday's open, shares in the Aussie biotech had surged 1,228.9% higher to $0.25 per share. That includes a 31.6% surge in the last month amid strong testing results for its proprietary detection tests.
Foolish takeaway
The AnteoTech share price has been surging higher to start the year. This morning is no exception on the back of receiving approvals for its EuGeni COVID-19 ART for sale in Europe and the United Kingdom.
