Why the AnteoTech (ASX:ADO) share price is plummeting 23% on Friday

The company’s shares can’t seem to catch a break.

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Key Points

  • AnteoTech shares sink on additional request for information by the TGA
  • The company submitted a performance report last week to the TGA
  • Study timeline date impacted by Omicron outbreak and staff shortage across healthcare system

The AnteoTech Ltd (ASX: ADO) share price is freefalling today regardless of the All Ordinaries (ASX: XAO) edging higher.

At the time of writing, the nanotechnology company’s shares are down 23.81% to 24 cents. This brings its week’s losses to a tad over 35% for shareholders.

In comparison, the broader ASX index is up 0.19% to 7,128.2 points.

AnteoTech receives additional request information

Investors are selling AnteoTech shares after digesting the company’s update regarding its EuGeni Reader and COVID-19 Rapid Diagnostic Test (RDT).

In its release, AnteoTech received a request for further information for its COVID-19 RDT by the Therapeutic Goods Administration (TGA). This relates to the collection of additional clinical data, together with other aspects of information.

The latest update follows the company’s submission last week providing a performance report of the RDT’s detection of SARS-CoV-2 variants.

Currently, the TGA is collaborating with AnteoTech on how best to address the clinical data requirements.

Late last year, the company supplemented its EuGeni studies by conducting a prospective clinical trial at the Alfred Hospital and Burnet Institute in Melbourne. This was conducted through a prospective clinical trial to further evaluate the performance of the EuGeni SARS- CoV-2 Ag RDT.

AnteoTech stated that the trial could provide further data in which the TGA may need to meet the clinical data requirements.

However, due to the current Omicron outbreak and healthcare staff shortage, the study timeline has been pushed back.

About the AnteoTech share price

Despite today’s heavy losses, the AnteoTech share price has advanced by more than 120% over the past 12 months.

The company’s shares reached an 8-month high of 41.5 cents last week, before crashing back down.

Based on today’s price, AnteoTech has a market capitalisation of roughly $473.78 million, with more than 1.97 billion shares outstanding.

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Motley Fool contributor Aaron Teboneras 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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