Why is the Atomo Diagnostics (ASX:AT1) share price halted?

Atomo shares currently sit in a requested trading halt. Read on for more details.

| More on:

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

The Atomo Diagnostics Ltd (ASX: AT1) share price has stepped into the green today.

Atomo shares are currently in a requested trading halt, however, just prior to this announcement, were trading 1.5% higher on the day at 34 cents apiece.

Read on for more details.

woman sitting at desk holding hand up in stop motion

Image source: Getty Images

Why is the Atomo Diagnostics share price halted?

Atomo advised just after lunchtime that trading of its shares is halted "pending a market update announcement (from the company) regarding its commercial arrangements with Access Bio Inc".

The trading halt will remain in effect until 6 October, unless Atomo decides to make the announcement prior to this.

Access Bio is a manufacturer of test-tube diagnostic tests, with specialties in rapid diagnostic tests for malaria and pregnancy.

Recall that Atomo had announced agreements with Access Bio last year to commercialise its rapid antigen COVID-19 tests in the Australian and North American markets.

It has since received regulatory approval in Australia and the US, using Atomo's Galileo platform to produce a test called CareStart EZ Covid-19 IgM/IgG.

In Q1 of this year, Atomo entered a partnership with Access for the company's rapid diagnostic COVID-19 tests in the North American Market, with the first product to be delivered in Q3 FY21.

So far the company has sold 1.1 million testing units to Access Bio and other partners for both the European and North American markets under this arrangement.

With the demand for rapid antibody testing for COVID-19 increasing markedly in the last few months, the company is positioned on the supply side in order to match this surge.

As it stands, more than 50 countries are using Atomo's antigen tests across a broad range of public and private sectors, according to the company.

There is yet to be any word on when Atomo will make its announcement, if or when before the 6 October.

Atomo Diagnostics share price snapshot

The Atomo Diagnostics share price has had a choppy year to date, posting a return of 11.5% since January 1.

It's rallied 58% this past month and is up a further 17% in the last week.

Despite this, Atomo shares are 9% in the red over the past 12 months, well behind the S&P/ASX 200 index (ASX: XJO)'s climb of about 25% in this time.

The author Zach Bristow has no positions 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

A cool white-bearded man holds his hand up signalling you should halt.
Healthcare Shares

ASX 300 cannabis stock Incannex suspended ahead of 'material update'

The Incannex share price is frozen at 14 cents for now.

Read more »

a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.
Healthcare Shares

Guess which ASX All Ords stock is rocketing 27% on a new FDA approval

Rett Syndrome has finally got an approved treatment.

Read more »

Five healthcare workers standing together and smiling.
Healthcare Shares

Buy these excellent ASX 200 healthcare shares: Goldman Sachs

Goldman has spoken very positively about these healthcare shares this week.

Read more »

medical asx share price represented by doctor giving thumbs up
Healthcare Shares

Guess which ASX biotech stock just rocketed 29% on big FDA news

The ASX healthcare share is attracting investor interest following FDA approval for its targeted cancer therapy compound.

Read more »

A doctor in a white coat sits at her computer with finger on mouth thinking about something in her office with medical equipment in the background.
Healthcare Shares

Should I buy CSL shares while they're under $300?

Can investors make a healthy return with this biotech?

Read more »

A man wearing a white coat holds his hands up and mouth open with joy.
Healthcare Shares

Mesoblast share price rockets 23% on FDA news

Mesoblast has received some good news for the US FDA this morning.

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Healthcare Shares

Owners of this ASX 200 share are soon going to receive a bigger dividend

Investors in this healthcare company are about to get a healthy cash boost.

Read more »

an older couple look happy as they sit at a laptop computer in their home.
Healthcare Shares

Hoping to collect the latest CSL dividend? Here's how

The next CSL dividend is fast approaching.

Read more »