Here’s why the Atomo (ASX:AT1) share price is soaring 10%

Personal rapid COVID-19 tests are in the news today, and the Atomo share price is benefitting.

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The Atomo Diagnostics Ltd (ASX: AT1) share price is soaring today amid calls for the Australian government to approve rapid COVID-19 tests for personal use.

Atomo Diagnostics has partnered with Access Bio to create a rapid COVID-19 test. The test, named CareStart EZ COVID-19 test, has been approved for emergency use in the United States.

Right now, the Atomo Diagnostic share price is up 10%. The medical device company’s shares are trading for 23 cents apiece.

Let’s take a closer look at the news making headlines today.

Push for personal rapid COVID-19 tests

The Atomo Diagnostic share price is gaining amid reports state and federal governments are being lobbied to approve rapid COVID-19 tests for personal use.

According to reporting by News.com.au, the Victorian Transport Association’s CEO Peter Anderson is pushing for personal rapid tests to be available to allow truck drivers to travel freely between states.

Anderson is also calling for more testing stations to be created on the border between NSW and Victoria.

Currently, truck drivers entering Victoria must receive a COVID-19 test every 3 days despite the results sometimes taking 3 days to be returned.

Additionally, ABC Radio reported this morning that the New South Wales government will soon announce a roadmap for Sydney’s next 4 weeks of lockdown, which may include personal rapid COVID-19 tests.

Numerous publications have reported NSW year 12 students might be among those using personal rapid COVID-19 tests.

However, the Royal College of Pathologists of Australasia has criticised the idea, saying they’re not accurate enough to be useful.

Finally, according to ABC News, Australia’s Health Department stated the tests aren’t useful when there are low rates of COVID-19 circulating.

Market watchers might be particularly excited about the Atomo Diagnostic share price today. That’s because the company’s rapid COVID-19 test has already been approved for use in Australian aged care homes.

Atomo Diagnostics share price snapshot

Despite today’s boost, the Atomo Diagnostic share price is still firmly in the red.

Right now, the Atomo Diagnostics share price is down 29% year to date.

The company has a market capitalisation of around $113 million, with approximately 586 million shares outstanding.

Should you invest $1,000 in Atomo Diagnostics right now?

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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