Why is Ellume hitting headlines today?

Brisbane-based diagnostics developer Ellume is back in the headlines.

Rapid Antigen Test taking place.

Image source: Getty iMAGES

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Key points

  • Ellume is in the spotlight as the United States Government looks to buy another 500 million RATs
  • Additionally, the company has reportedly started working to get approval to sell its tests in Australia
  • There's still no word of Ellume listing on the ASX

Brisbane-based diagnostics developer Ellume is back in the headlines as demand for rapid antigen tests (RATs) continues to hit Australia and the world.

However – while there has been speculation – there's been no word as to whether we'll see shares in the company on our home-spun market.

Ellume isn't listed on the ASX. In fact, there's still nowhere for investors to publicly buy shares in the company.

Let's take a closer look at what's got many excited about the company this morning.

What's got ASX-watchers excited about Ellume on Friday?

The first news that might have put the spotlight on Ellume this morning came from its major market, the United States.

While most Australians slept last night, President Joe Biden announced that the United States Government will be handing out 1 billion free tests to citizens – 500 million more than previously promised. That means the government will be off to the shops looking to snap up the extra RATs.

Ellume's test was the first over the counter at-home RAT to be approved by the country's Food and Drug Administration back in December 2020. Since then, the United States Government has snapped up millions of them.

That likely leaves many wondering if its products could once again be in the government's cart.  

Back home, the ABC today reported it understands that Ellume has begun the journey of receiving Therapeutic Goods Administration (TGA) approval for its RAT tests.

If given the green light by the regulator, the tests will be allowed to be purchased by Australian consumers. Though, that doesn't mean they'll be on shelves any time soon.

Previously, Brisbane Times reported, while Ellume planned to submit its product for TGA approval early this year, the company stated it can't supply Australia with RATs until mid-2022.

However, the scramble for RATs that has likely put focus on Ellume also seems to have boosted the share price of its ASX-listed peers.

Right now, the AnteoTech Ltd (ASX: ADO) share price is up 3.92%. Meanwhile, that of Lumos Diagnostic Holdings Ltd (ASX: LDX) has gained 2.5%. Both companies are selling their RATs overseas while they await TGA clearance.

Motley Fool contributor Brooke Cooper has no position 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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