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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.
