Key points
- Atomo shares accelerate on back of New Zealand approval for its antigen test
- Businesses and pharmacies allowed to supply COVID kit for sale
- Atomo has secured up to 20 million units for Australia and New Zealand
The Atomo Diagnostics Ltd (ASX: AT1) share price is racing higher during Thursday trade. This comes after the company announced it has received approval to expand its product into another key geographical market.
At the time of writing, the medical device company's shares are up 17.5% to 23.5 cents apiece. However, in early trade they were up 25% at 25 cents before partially retreating.
Atomo expands geographical presence
Investors are driving up the Atomo share price after digesting the company's latest positive news.
In a statement to the ASX, Atomo advised its COVID-19 antigen test has been approved for use in New Zealand.
The green light was given by the New Zealand Ministry of Health under the New Zealand COVID-19 public health response.
The country is currently on 'red alert' status after the Omicron variant continued to accelerate across key cities.
This follows one of the most significant turning points of New Zealand's pandemic, with the government accepting the virus. The suppression strategy is a major psychological shift from the previous pathway of aiming to achieve COVID zero.
The COVID-19 antigen test can be used by professionals such as healthcare workers and government agencies or for self-test use.
New Zealand-based businesses and pharmacies are all permitted to supply, distribute, and sell the Atomo COVID-19 antigen test.
To support demand, Atomo secured up to 20 million COVID-19 rapid antigen tests for Australia and New Zealand in 2022.
The company revealed it renegotiated its supply agreement with United States manufacturer, Access Bio, last August.
Commenting on the news driving the Atomo share price higher, managing director John Kelly said:
We are excited the Atomo antigen test has received approval for use in New Zealand and we have now commenced commercial discussions related to supply of the product to the New Zealand market.
Atomo share price summary
Over the past 12 months, the Atomo share price has moved on a rollercoaster ride to post a loss of almost 20%.
It's worth noting that despite today's strong gains, the company's shares are down by more than 21% in 2022.
Based on today's price, Atomo has a market capitalisation of roughly $100.13 million, with approximately 408.69 million shares on issue.
