The Atomo Diagnostics Ltd (ASX: AT1) share price has gone berserk in the past week.
In the last 7 days, shares in the medical device company have soared more than 30%.
Let's take a look at why the Atomo share price is flying.
Demand for rapid testing fuelling Atomo share price
In the past week, Atomo has not released any price-sensitive news that could explain the bullish price action.
As a result, various other catalysts could be fuelling investor demand for the company's shares.
With the Delta outbreak threatening to get out of hand in Australia, there has been increasing demand for rapid testing solutions.
Australia has largely relied on pathology testing in fighting the COVID-19 pandemic.
However, various sources have reflected concern on their turnaround time for results.
Pathology testing can take up to three days to deliver a result, by comparison, rapid antigen tests can detect COVID-19 in as little as 10 minutes.
Atomo is one of the few listed companies in Australia that has produced rapid COVID-19 testing.
Of particular interest is the company's rapid antibody test CareStart EZ COVID-19, which was developed in conjunction with its partner Access Bio.
Earlier this year, 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.
The biotech has supplied its CareStart EZ COVID-19 test to various Olympic and sporting teams, whilst also supplying aged care providers.
More on Atomo
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.
The biotech recently published its full-year results for FY21, which was highlighted by a 25.1% increase in revenue to $6.72 million.
Other highlights from Atomo's report included;
- Cost of sales up 52% to $3.3 million
- Gross profit up 7% to $3.42 million
- Underlying operating loss widened 101% to $4.79 million
- Cash balance of ~$18 million
According to Atomo, revenue was largely driven by consumer demand in Europe and North America for its COVID-19 antibody tests.
At the time of writing, shares in Atomo are trading slightly lower for the day at 28 cents.
