Key points
- The AnteoTech share price is up 4% in early morning trade.
- The gain may relate to reports AnteoTech's boss is hopeful its RAT device is in the final stages of TGA approval
- The company's reportedly preparing to ramp up production in Australia on the back of the regulator's green light
The AnteoTech Ltd (ASX: ADO) share price is in the green this morning.
The gain comes amid reports AnteoTech plans to ramp up Australian production of its point-of-care rapid testing device as it awaits the Therapeutic Goods Administration's (TGA's) tick of approval.
At the time of writing, the AnteoTech share price is trading at 26.5 cents, 3.92% higher than its previous close.
AnteoTech shares climb as it readies for Australian approval
The AnteoTech share price is gaining after the company's CEO Derek Thomson told ABC News it's getting ready to hit the ground running as soon as its RAT is given the green light for use in Australia.
The Australia-based company is also reportedly prepared to push some of its tests produced in Spain into its home country until domestic manufacturing gets on its feet.
The ABC quoted Thomson as saying:
We can manufacture, currently, a small volume of tests here…
Our plan now, as Australian governments have indicated that RATs are going to be a frontline tool for the pandemic, is to scale up manufacturing here in Brisbane significantly over the next 9 to 12 months.
AnteoTech's RAT works through its EuGeni Rapid Diagnostic Platform. It's a point-of-care platform – meaning it can be operated by healthcare professionals. The company's COVID-19 RAT is the first test to be used with EuGeni.
Thomson said AnteoTech had put an order in for equipment that could see it producing 12 million RAT strips annually in Australia. It expects production to start in the second quarter of 2022.
Additionally, he told the publication AnteoTech would be able to make more than that 12 million over the next 12 months, providing "a real sovereign manufacturing capability for the Australian market".
Finally, Thomson noted the company's tests could be in the final stages of TGA approval. He said AnteoTech was planning to supply more information to the regulator next week.
Spotlight on RATs
There's plenty of other news likely putting the focus on RAT developers today.
Overnight, United States President Joe Biden announced the government will soon hand out 1 billion at-home RATs – meaning they'll be out shopping for an additional 500 million tests.
Meanwhile, controversy surrounding the Australian Federal Government's acquisition of RATs hit headlines today. If reports are correct, demand for RATs at retail outlets may well increase.
According to yesterday's reporting by SBS, retailers claim the government seized their RAT orders at the point of import. The Department of Health has denied diverting supplies.
AnteoTech share price snapshot
The AnteoTech share price has had a rough start to 2022. Prior to today's open, it had fallen 17% since the final close of last year.
However, shares in the company are currently trading 120% higher than this time last year.
