Materials science company, AnteoTech Ltd [ASX:ADO], shares are on the up today. The stock is currently trading 8.89% higher, thanks to some good news regarding an ongoing product rollout.
As we’ve talked about previously in Money Morning, ADO has been busy developing its novel COVID-19 testing solution. A fast and effective alternative for screening at-risk patients.
And with its own custom reader, EuGeni, ADO plans to roll it out to as many nations as possible. Which, with today’s distribution deal, is one step closer to becoming possible.
Let’s take a closer look…
UK deal to ignite ongoing efforts
ADO has announced this morning that it has reached a distribution agreement with Apacor, a UK-based manufacturer who will work with ADO to market the EuGeni reader and COVID rapid diagnostic tests (RDT).
Crucially, with a long history, Apacor is renowned for its experience working with government tenders. Something that ADO is certainly keen to achieve and realise for its own products.
With a one-year team, and optional two-year extension, ADO and Apacor will certainly have time to explore their options. Naturally though, the former will be hoping for long-term success.
As CEO, Derek Thomson comments:
‘We are very pleased to be signing our first European distributor agreement, with Apacor for the UK. The UK has a strong history of deploying antigen rapid testing in the battle against COVID-19. To control the spread of COVID-19 the UK’s NHS has procured large volumes of rapid tests and deployed them across Britain. We believe that in the future the NHS’s strategy for pandemic control will include ongoing screening and testing, which the UK has already rolled out through a number of programs, such as the recently announced Daily Contact Testing Pilot Scheme.
‘Apacor has a strong track record and experience in securing government tenders for diagnostic products, and we look forward to working with them to introduce the high sensitivity reader based EuGeni platform as a primary tool in control of COVID-19 to the private and public sector in the UK.’
Time will tell if these tenders come to fruition.
But at the very least, ADO has put itself in a position to potentially capitalise upon them, should they come.
What’s next for ADO?
As for what comes next, well, the obvious answer is hopefully sales.
The agreement commences from 1 August, just a few days from now. So what ADO will really be hoping for is some market traction. Something that investors are clearly waiting for.
Beyond this, the long-term goals are a little harder to pinpoint.
Sales, though, are what this company needs, and soon. Management can’t afford to keep chewing through capital without some sort of reward to show for it.
So fingers crossed for investors that they will start to see some progress. After all, this is a very risky and speculative stock, but one that could yield some big returns.
For that reason, ADO could be a hidden small-cap gem…
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