AnteoTech (ASX:ADO) share price gains 42% in a week amid RAT race

The demand for rapid antigen tests appear to be pushing the company's shares higher.

| More on:

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

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

Image source: Getty Images

Key points

  • The AnteoTech share price soared again today, taking its gains over the past week to 42%
  • Demand for rapid antigen tests is increasing
  • The company's CEO is hitting media headlines this week

The AnteoTech Ltd (ASX: ADO) share price has been skyrocketing amid momentum for COVID-19 rapid antigen tests.

Shares in the company soared 7.25% on Thursday to close at 37 cents apiece. That's a 42% gain on last Thursday's closing price.

Let's take a look at what may be impacting AnteoTech shares.

What is happening at AnteoTech?

The AnteoTech share price is surging amid the rising demand for rapid antigen tests in Australia. In fact, the company has been hitting media headlines in recent days as it seeks approval for local production.

CEO Derek Thomson told the Courier Mail he has been seeking permission to manufacture the tests for nearly two years. He said:

We could supply millions now, it's a good volume and it would certainly make a dent in the Queensland need at the moment.

The company has been producing rapid antigen tests in the European market including Spain while it waits for approval from Australia's Therapeutic Goods Administration.

My Foolish colleague James noted on Friday the company plans to ramp up local production in the near future, and sales in 2022 could rocket due to RAT shortages. The AnteoTech share price jumped on the news.

Speaking on the pending TGA approval, Thomson told the Courier Mail:

We're supplying them some more information, we've continued to do that and we believe that we're in the final stages of our of our processing.

We would have liked it to go quicker but we understand that they have a responsibility and we're working with them as best we possibly can.

Thomson also appeared on the Today Show on Thursday morning, where he said he believes the company will get through the TGA approval process "soon".

Rapid antigen tests have been dominating media headlines in recent weeks, with other Australian companies also awaiting approval on the tests.

Among these are Lumos Diagnostics Holdings Ltd (ASX: LDX) and unlisted Brisbane-based diagnostics developer Ellume.

AnteoTech share price snapshot

The AnteoTech share price has returned 221% in the past year. This year to date, it has gained around 21%, while it has soared almost 95% in the past month.

Meanwhile, the S&P/ASX 200 index (ASX: XJO)'s has returned 8.45% in the past year.

Motley Fool contributor Monica O'Shea 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 Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy hump day for ASX investors.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today

These shares are having a good time on hump day. But why?

Read more »

A young man wearing glasses and a denim shirt sits at his desk and raises his fists and screams with delight.
Share Gainers

Up 223% in a year, guess which ASX All Ords mining stock is rocketing again today on big news

Investors are piling into this ASX critical minerals miner on Wednesday. But why?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another rough day on the markets.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Share Gainers

Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today

These shares are having a strong session on Tuesday. What's going on?

Read more »

Two hikers high five each other having climbed to the top pinnacle of the mountain.
Share Gainers

Up 1,700% and more, what's next for these ASX 200 shares?

The market's biggest winners face their next test.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre start to the trading week today.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Share Gainers

Why A2 Milk, Lindian Resources, Perenti, and SGH shares are pushing higher today

These shares are starting the week in a positive fashion. But why?

Read more »