The Atomo Diagnostics Ltd (ASX: AT1) share price has surged through the festive period. It's gained 50% since the ASX closed on Christmas Eve.
The stock's recent boost could be due to its involvement with COVID-19 rapid tests. Rapid tests have been the talk of the town lately as Australia faces a record wave of COVID-19 cases.
At the time of writing, the Atomo Diagnostic share price is 31.5 cents, 5% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 1.3% right now.
Let's take a closer look at what might be driving the company's stock lately.
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Atomo Diagnostics share price particularly festive
The Atomo Diagnostics share price has been on a roll lately. The company's shares surged 26% on Wednesday, triggering the ASX to issue a 'please explain'.
In its response, the company noted increased media attention on the topic of COVID rapid antigen tests. Indeed, rapid tests have been on many minds lately, including those of the country's decision-makers.
The same day the Atomo Diagnostics share price experienced its major leap, Prime Minister Scott Morrison announced the federal government was bringing forward a national cabinet meeting to discuss implications of the Omicron outbreak, including testing arrangements.
That meeting occurred on 30 December. It led to the introduction of new orders stating rapid antigen tests will become the go-to COVID-19 test for most Australians, with PCR tests restricted to those with symptoms and close contacts.
Additionally, Atomo Diagnostics pointed to an article published by the Sydney Morning Herald the previous day as a potential catalyst for its shares' gains.
The article discussed increasing demand from consumers and state governments for COVID-19 rapid tests.
In October, the company announced new terms to its supply agreement for COVID-19 rapid tests.
It can now purchase up to 10 million rapid tests to be used in professional settings in Australia and New Zealand and another 10 million to be sold commercially.
While the Atomo Diagnostics share price initially dived 11.7% on the new terms, the prospect of supplying more tests could be what's got the market excited about the company.
However, despite the stock's Christmas gains, the company's share price is only 1.6% higher than it was this time last year.
