The AnteoTech Ltd (ASX: ADO) share price is bouncing around today with above-average trading volume. This comes as Ellume secures further approvals from the United States Food and Drug Administration (FDA) for its COVID-19 rapid antigen home test.
At the time of writing, the AnteoTech share price is up 4.17% to 25 cents. Meanwhile, the trading volume is around 4.3 million shares. This represents around 91% of the company's average volume for a whole month.
Let's look at the latest news and why AnteoTech shares are returning a positive reading today.
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More tests to fly out the door
For those unaware, AnteoTech is connected to Ellume by providing its 'AnteoBind' technology for Ellume's at-home tests.
According to recent reports, Brisbane-based Ellume is ramping up its rollout of the tests across the United States. This follows the local company receiving approval from the FDA to sell COVID tests to point-of-care providers. Such providers include doctors, pharmacists, and commercial venues.
While millions of at-home COVID tests are flying off the shelves, Australia can't say the same. Due to Australian legislation, over-the-counter test kits are currently banned locally.
Additionally, in an interview with The Australian Financial Review, Ellume founder and CEO Mr Sean Parsons said:
Right now, the TGA [Therapeutic Goods Administration] are not able to review a submission we make for a home COVID test because there is a piece of legislation that is prohibiting them. Their hands are tied. The law was written when pandemics weren't really imagined and they wanted to force people to record how many of those illnesses [went] through the health system. I don't think it really makes sense now
The statement is timely given the current situation faced by the New South Wales Government. A further 98 local COVID-19 cases were recorded by the state overnight.
ASX-listed AnteoTech rides the Ellume buzz
The Anteotech share price has had a cracking 12 months, with shares gaining around 650% over the period. Incidentally, AnteoTech is possibly benefitting from the fact that Ellume is not a publically listed company. With Ellume being an AnteoTech customer, investors might consider the ASX-listed company to be the next best thing.
Finally, the AnteoTech share price was the best performing ASX-listed healthcare share in FY21. The company now holds a market capitalisation of around $478.5 million.
