The AnteoTech Ltd (ASX: ADO) share price embraced February with arms wide open.
So far, the new month has treated the biotechnology company much better than January. A month that saw AnteoTech shares plunge 36% as the Therapeutic Goods Administration (TGA) sought more information from the company for its EuGeni Reader and COVID-19 Rapid Diagnostic Test (RDT).
Since the beginning of February, the AnteoTech share price has climbed 30%. For context, the S&P/ASX 200 Index (ASX: XJO) is only up 3.1% over the same period.
At market close, ASX-listed AnteoTech finished the day up 13.04% to 26 cents apiece.
Although, investors might be scratching their heads wondering what could be behind this recovery. It's time to take a closer inspection of what's been happening.
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ASX investors' change directions on AnteoTech
Market sentiment towards AnteoTech was impacted in January. The disruptions to the company's study timeline created by the Omicron outbreak depressed the share price.
In addition, the market was unimpressed with its quarterly business update. Upon the release of its update, AnteoTech shares continued to sell-off.
Fortunately, AnteoTech shareholders have been treated to a few news items that have been well received this month. Firstly, reports suggested the Federal Government might allow the use of unapproved rapid antigen tests for personal use in Australia.
Secondly, the government unveiled it would make COVID-19 tests tax-deductible. Several ASX-listed companies, including AnteoTech, experienced a jump in share prices on the news. A caveat is that the deduction only applies to COVID-19 tests used for work-related purposes.
Lastly, rapid antigen tests (RATs) are now compulsory for anyone arriving at Western Australia hospitals as of yesterday. Health Minister Amber-Jade Sanderson revealed that the screening process will be a requirement before entering hospitals.
Perhaps AnteoTech investors are viewing this as a positive for RAT demand.
AnteoTech share price snapshot
ASX-listed AnteoTech has been riding a rollercoaster over the past 12 months. In fact, shareholders have needed to grit their teeth through violent swings between 50 cents and 16 cents. Nonetheless, AnteoTech shares have provided a 49% return over the last year.
Despite the rise to prominence, the company continues to be a loss-making operation. Additionally, AnteoTech's revenue for the trailing 12-months as of 30 June 2021 was $2.3 million. This is typically considered to not be a meaningful amount.
