Green-light for AnteoTech COVID-19 Test Sends Shares Up (ASX:ADO)

It’s a case of back-to-back wins for nanotech stock AnteoTech Ltd [ASX:ADO].

On Friday, I discussed the company’s latest inclusion in a new battery venture. An undertaking that could fast track the development of AnteoTech’s novel particle chemistry.

You can read all about that, right here.

Today though, the ADO share price is rising for a different reason. With the ongoing efforts of a novel COVID-19 test responsible for the upbeat outlooks. Especially now that AnteoTech has received CE Mark registration for it.

Let’s discuss further…

Approved and ready for rollout

If you’re wondering what a CE Mark is, well it is simply a regulatory approval for sale in Europe. Much in the same way that products sold in Australia have to meet Australian Consumer Law (ACL) standards.

So, the fact that AnteoTech’s EuGeni reader is now approved, is a huge development.

One that they’ve been working towards for months now. As we’ve previously reported on, here.

As management notes, getting approval opens up the potential for a brand-new revenue stream for the company. Focusing initially on their COVID-19 Antigen Rapid Test (ART), but with the possibility to expand far beyond into other infectious testing capabilities.

For instance, AnteoTech already has plans to provide a quantitative test for Sepsis: a natural, but life-threatening response to infection from within the body that is time critical.

So, by offering a more robust testing methodology, AnteoTech may be able to offer better patient outcomes. Helping save lives, and keeping all of us healthier in a timely manner.

All of which they can now market and sell thanks to overcoming this regulatory hurdle.

As CEO Derek Thomson put it:

We are delighted to have achieved this significant milestone in our strategy to become a legal manufacturer of rapid tests. It is a transformative moment, the culmination of twelve months of intensive effort.

CE Mark for the COVID-19 ART prodives us with an opportunity to capture some of the large and growing European antigen rapid test market. We believe we have a superior test with high sensitivity and specificity based on our unique AnteoBind technology. We will soon enhance this offering with a saliva use case and new COVID-19/Flu A/Flu B Multiplex test, which will give us a very strong competitive advantage over other products currently on the market.’

What does this mean for AnteoTech shareholders?

Again, just like Friday’s battery news, this all sounds like a fantastic development.

The kind of progress that investors have no doubt been holding out for.

However, once again, with no metrics to gauge how well this technology and the tests will resonate with customers, it is hard to tell how beneficial, financially, any of this will be.

Until we get some initial sales data, we won’t really know how disruptive AnteoTech’s products may be.

Granted, if management’s assessments are to be trusted, they could be revolutionary. Because as Thomson states, they are hoping for a ‘very strong competitive advantage’.

Hopefully that will translate into a strong bottom-line result too…

If you’re feeling speculative, then AnteoTech is certainly one stock worth looking into.

But, if you’re after small-caps with a bit more substance to them, then you might want to think about value. Such as our latest list of four small stocks that we believe have been travelling under the radar of most investors.

You can read all about them in our free report, right here.


Ryan Clarkson-Ledward
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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