Shares in Brisbane-based nanotechnology company AnteoTech (ASX: ADO) have risen by more than 70 per cent today on the news that customer Ellume bagged a $304 million US Government contract.
As announced in October last year, Ellume is a customer of AnteoTech and integrates the 'AnteoBind' technology in its at-home COVID-19 diagnostics platform.
As a result, ADO shares are riding high today on Ellume's announcement that it will be establishing a US-based manufacturing facility to produce 8.5 million more COVID-19 home tests as part of a $304 million contract. AnteoTech went into a trading halt yesterday pending today's announcement.
The AnteoBind tech is also used in AnteoTech's own COVID-19 Antigen Rapid Test, currently in development, and several other diagnostic tools marketed globally.
According to AnteoTech CEO Derek Thomson, Ellume's announcement is a "welcome event", demonstrating ADO's importance in delivering key diagnostic products to global markets.
"We are delighted to be involved with Ellume's success and we congratulate the company on their announcement," says Thomson.
"Ellume was the original seed customer in AnteoTech's strategy to demonstrate the value that AnteoBind can bring to assay development and it is pleasing to see that strategy now delivering market recognition.
"We look forward to continuing our close relationship with Ellume and expanding on the opportunities that our relationship is generating."
AnteoTech says it has been working with Ellume closely over recent months to ensure supply of AnteoBind, and the company is confident it has the capacity to fulfil the increased requirements.
"We expect that Ellume's requirement for AnteoBind will increase modestly over coming months as they begin to supply the US markets," says AnteoTech.
Shares in ADO are up 70 per cent to $0.17 per share at 12.34pm AEDT - the highest they've been in the last 12 months.
The share price is even higher than the group's most recent spike in October 2020 when AnteoTech announced positive results from a trial of its COVID-19 rapid test.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support