The Rhinomed Ltd (ASX: RNO) share price is on the move during mid-morning trade. This comes after the medical device company provided the market with a positive release in regards to its Rhinoswab product.
At the time of writing, Rhinomed shares are up 20% to 45 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) has travelled 0.60% higher to 7,704 points.
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What did Rhinomed announce?
Investors are fighting to get a hold of Rhinomed shares after the company announced a deal with the Victorian government.
According to the release, Rhinomed advised the Victorian Department of Health has made an initial purchase order for 1 million Rhinoswabs.
Pleasingly, this follows the recent New South Wales Health Pathology order of one million Rhinoswabs on 11 August.
Rhinomed's Rhinoswab technology is stated to be more comfortable and easier to use than the standard nasal swab. The medical product is able to capture a larger sample, and can quickly process the data, thus reducing queues and waiting times.
As a result of the orders, Rhinomed is ramping up its manufacturing capabilities to accommodate the growing demand.
The Rhinoswab is registered with the United States Food and Drug Administration (FDA), Australian Therapeutic Goods Administration (TGA) and has a European CE mark.
Rhinomed CEO, Michael Johnson commented:
We are pleased to receive further validation of the Rhinoswab from the Victorian Government.
The Rhinoswab can make a meaningful impact on the SARS-CoV-2 testing process and enable more people to be tested quickly and easily. With well over 2 billion SARS- CoV-2 tests having been carried out globally over the past 18 months (close to 26 million in Australia alone), there is a major opportunity for Rhinoswab to radically improve the testing process, clinical outcomes and user experience…
The Victorian government order represents approximately 35% to 45% of unaudited FY21 revenues of $3.9 million.
About the Rhinomed share price
Since this time last year, Rhinomed shares have accelerated 450%, with year-to-date gains above 175%. The company's share price reached a multi-year high of 48.5 cents today before some profit-taking took place.
Rhinomed presides a market capitalisation of roughly $111.6 million and has around 253 million shares on its books.
