The Lumos Diagnostics (ASX:LDX) share price is soaring another 8% today. Here’s why

The company’s shares are continuing their positive run in February.

| More on:
a group of young people dance together with their hands in the air, moving to music.

Image source: Getty Images

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

Key points

  • The Lumos Diagnostics share price is up 8% today, and 22% in the last 3 days
  • RAT supply shortages soon coming to an end
  • Victorian government’s investment in Lumos Diagnostics has excited investors

The Lumos Diagnostics Holdings Ltd (ASX: LDX) share price is again on the move today. This comes after news broke that rapid antigen test (RAT) shortages have started to ease over the past few days.

During afternoon trade, the medical diagnostics company’s shares are up 7.92% to $1.09 apiece, having earlier been as high as $1.26. This means that since the end of January — the close of trade on Monday — Lumos Diagnostics shares are up by more than 22%.

RAT supply concerns almost a thing in the past

Investors are pushing up the Lumos Diagnostics share price following the Federal Health Minister’s comments today regarding RATs.

According to an article published by, Australia’s supply shortage of RATs could soon be at an end.

Health Minister Greg Hunt said he received a positive message from Chemist Warehouse boss Mario Verrocchi on Wednesday morning.

“The message from the CEO … was that they have very significant supplies,” Hunt said.

On January 24, the government launched a scheme to provide free RATs for pensioners and concession cardholders.

Around 3.1 million RATs have been handed out under the scheme, which is available to roughly 6 million Australians.

Chemist Warehouse, Australia’s largest pharmacy chain, revealed it has handed out two-thirds of free RATs to eligible users. This equates to about 2 million free RATs.

The news follows Lumos Diagnostics’ release yesterday in which it advised the Victorian government intends to support a diagnostics manufacturing facility and innovation hub.

The Andrews government plans to invest $17.2 million in Lumos Diagnostics to establish capability for manufacturing RATs in Victoria.

However, this is subject to the company meeting a number of requirements such as securing approval from the Australian Therapeutic Goods Administration (TGA) for its RATs.

Lumos Diagnostics believes if it is granted these rights, production can begin as early as the second quarter of 2022.

Once the facility is set up, up to 1 million RATs will be initially produced each year. This is expected to increase to up to 50 million RATs a year through the introduction of greater automation and expanding production lines.

Furthermore, the RATs can also be modified to be used for influenza, infectious diseases, reproductive health, and chronic disease management.

About the Lumos Diagnostics share price

Since being listed in July last year, the Lumos Diagnostics share price is down around 12%. However, with this week’s gains, it is up around 13% year to date.

Lumos Diagnostics has a market capitalisation of about $152 million.

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.

More on Healthcare Shares

Female doctor with a mask holds out hand in a stop gesture.
Capital Raising

Up 90% in 2 weeks, here’s why the Paradigm share price has been halted

The biopharmaceutical company is planning a capital raise.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Broker Notes

Goldman Sachs gives its verdict on the CSL share price

Where next for CSL's shares?

Read more »

Healthcare Shares

Mayne Pharma share price rockets 25% on $680 million payday

It's been a good day for the ASX pharmaceutical company.

Read more »

Two researchers discussing results of a study with each other.
Healthcare Shares

What’s with the Polynovo share price on Wednesday?

Shares in the ASX medical devices company hit their year to date high today before retreating again.

Read more »

A man in a wheelchair stretches both arms into the air in success.
Healthcare Shares

Imugene share price lifts 11% on clinical trial update

Imugene shares are flying higher today.

Read more »

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

Why is the Polynovo share price powering 6% on Tuesday?

A government grant is set to boost the medical devices company's production capability.

Read more »

A young woman slumped in her chair while looking at her laptop
Healthcare Shares

Mesoblast share price slides 8% following $65m capital injection

Mesoblast took a hit early in the session today.

Read more »

Medical technicians wearing white medical coats conduct a test in a laboratory.
Healthcare Shares

CSL share price climbs as $16 billion Vifor acquisition becomes effective

CSL shares are in the green on Tuesday...

Read more »