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Key points
- The AnteoTech share price shot 15% higher today
- It follows media speculation RATs not approved by the TGA may be imported into Australia
- Yesterday, the company's shares fell 13%
The AnteoTech Ltd (ASX: ADO) share price surged today in a massive turnaround from its plummet yesterday.
The scientific research company's shares finished the day at 22.5 cents, a 15.38% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) closed up 0.49% today.
Let's take a look at what might have impacted the AnteoTech share price today.
What's happening at AnteoTech?
AnteoTech has developed a COVID-19 rapid antigen test (RAT) for its EuGeni Reader diagnostic platform. However, the company is still awaiting approval from the Therapeutic Goods Administration for its use in Australia.
Now speculation is mounting that RATs not currently approved by the TGA could be allowed into Australia.
The Guardian reported today the federal government has "quietly agreed" to allow unapproved rapid antigen tests into the country for personal use.
AnteoTech's share price has surged today after a 13% fall yesterday.
As my Foolish colleague Aaron reported, the company is continuing to engage with the TGA on regulatory approval for its RAT test. AnteoTech also received $1.96 million from the federal government's Research and Development tax incentive scheme.
The regulator has asked the company to supply more clinical data. Chief executive officer Derek Thomson said:
The TGA has advised us we must add prospective clinical data to support our test performance claims generated using stored samples to align our technical data with the [Medical Device Coordination Group] MDCG guidelines.
We are currently collecting this data via trials in Australia and Europe, which will also provide the required data set for entry to the EU Common List and [In Vitro Diagnostic Regulation] IVDR registration.
The company's application for TGA approval was submitted in September. The Australian reported that although the RATS are not approved for use in Australia, they are made in Eight Miles Plains in Queensland and shipped offshore.
Meanwhile, federal opposition leader Anthony Albanese pledged on Sunday to prioritise locally-manufactured RAT tests if elected, The Canberra Times reported.
Share price snapshot
The AnteoTech share price has skyrocketed 125% in the past year. However, it's dropped around 26% in the past month and is down 39% in the past week alone.
In contrast, the broader ASX 200 Index has returned about 5% in the past 52 weeks.
AnteoTech has a market capitalisation of $444 million based on its current share price.
