Here’s why the Atomo (ASX: AT1) share price flew 4% higher today

The rapid COVID-19 test provider has been in the spotlight today.

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Woman prepares to insert a swab in her nose to test for COVID-19 at home.

Image source: Getty Images

The Atomo Diagnostics Ltd (ASX: AT1) share price bolted more than 8% at one point during today’s session.

The medical device company finished the day up 4.55% at 23 cents.

Atomo shares have seen greater interest as Australia battles to control a new wave of COVID-19 infections.

Here’s why the Atomo share price is getting extra attention today.

Atomo share price up on COVID-19 rapid testing

The Atomo share price has come under the spotlight as the COVID-19 pandemic threatens to get out of hand in Australia.

Although Atomo has not released any price-sensitive news today, an article in The Australian could explain why shares in the biotech are racing higher.

The article highlighted the benefit of rapid antigen testing for COVID-19, as the outbreak in Australia worsens.

Australia has largely relied on pathology testing to detect positive cases and assist contact tracers.

However, given the rapid spread of the recent COVID-19 outbreaks, the need for rapid antigen testing has grown.

According to the article, rapid antigen tests can detect COVID-19 in as little as 10 minutes. By comparison, pathology testing can take up to three days to deliver a result.

In particular, the article highlighted the rapid COVID-19 test produced by Atomo.

The article noted that Atomo’s rapid tests have been supplied to various Olympic and sporting teams.

The tests have also been supplied to aged care providers.

The article also highlighted that Atomo has been supplying tests to the Australian Defence Force and mining and oil companies.

In the article, Atomo’s Chief Executive John Kelly said:

“And the problem is exacerbated by the fact that to get a product accepted in the state healthcare systems it really needs to be reimbursed. It’s been extremely difficult, nigh impossible, for point-of-care diagnostics to get reimbursement in Australia.”

More on the Atomo share price

Atomo is a medical device company that supplies rapid diagnostic test devices to the global diagnostic market. The company’s patented devices simplify testing procedures and enhance useability for professional users.

Of particular interest is Atomo’s CareStart EZ COVID-19 test.

CareStart EZ COVID-19 is a rapid antibody test, developed by Atomo in conjunction with its partner Access Bio.

Most recently, the Atomo share price received a boost after announcing that Access Bio received Emergency Use Authorisation (EUA) from the U.S. Food and Drug Administration (FDA) for point-of-care use of its CareStart EZ COVID-19 test.

Shares in the medical device company hit an intraday high of 24 cents today.

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