Why is the Atomo Diagnostics (ASX:AT1) share price wobbling on Thursday?

It’s been a busy week so far for the medical devices company

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The Atomo Diagnostics Ltd (ASX: AT1) share price has been struggling to gain traction today. It is currently trading flat at 30.5 cents — the same price it closed at yesterday.

It’s been a similar story for most of the day, with the shares hitting a high of 32 cents earlier before retreating.

There has been no market-sensitive information out of the medical devices company today. However, the company has released a slew of price-sensitive information in the past few days.

Further – while not likely to have a meaningful impact on the Atomo Diagnostics share price – the company has also released its AGM address today.

Let’s investigate further.

What’s been happening with Atomo Diagnostics?

Atomo released its Q1 FY22 activities and earnings report on 25 October. In it, the company recognised a significant increase in revenue to $2.4 million, up 260% from the previous quarter.

Cash receipts totalled $2.2 million for the quarter, also a 206% gain from the last quarter.

Much of the growth in income stemmed from a “significant increase in Covid-19 rapid antigen test sales”. The company sold more than 100,000 units compared to just 5,000 in FY21.

The company also signed an agreement with Access Bio for US$1.72 million to secure “up to 20 million Covid-19 rapid antigen tests”.

The following day, Atomo released a key update regarding its HIV self-test. It said the Therapeutic Goods Administration (TGA) has “broadened the organisations to whom the HIV self-test can be applied”.

This enables the company to supply its HIV self-test to any business, organisation, or institution (including a pharmacy) that has the proper training. Curiously, the varied conditions also allow the company to sell the test on pharmacy websites.

The decision also enables Atomo to advertise its HIV self-test in any form of media to be marketed in Australia.

Before these changes, Atomo said it was unable to advertise or promote its HIV self-test website or the HIV self-test product itself.

Despite these apparently positive changes, investors haven’t piled into Atomo shares. Since its quarterly update on Monday night and HIV self-test announcement on Tuesday morning, the Atomo Diagnostics share price has sunk by around 13%.

News from the AGM

One other point worth mentioning is that Atomo also released the presentations from its AGM today. While not price-sensitive, investors were able to peer into the company’s operations, its progress in FY21, and its future outlook.

In the report, Atomo explained it has “an opportunity to sell up to 20 million antigen tests during FY22–23”.

It also sees itself capitalising on local Covid-19 opportunities, including a self-test product in this category as well.

Atomo Diagnositcs share price snapshot

It’s been a difficult year to date for the Atomo Diagnostics share price, falling by 1.6%. It has also slumped by around 21% since the company listed on the ASX in April 2020.

For comparison, the S&P/ASX 200 index (ASX: XJO) has gained around 11% since the start of the year.

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The author Zach Bristow has no positions 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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