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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Share Market News

Two people comparing and analysing material.

Should you buy Metcash or Wesfarmers stock now?

I like the impressive hardware divisions of both of these businesses.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards for owners of these shares according to analysts.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fiducian Group, Northern Star, Paradigm, and Santos shares are charging higher

These shares are avoiding the market selloff.

Read more »