The medical device company experienced a huge growth in revenue in FY20.
Atomo Diagnostics Ltd’s [ASX:AT1] boost is primarily driven by the acceleration of HIV rollout via Mylan.
This saw the AT1 share price move up 3.03% to 34 cents at the time of writing.
Source: Optuma
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What’s happening at Atomo Diagnostics?
2020, the year of COVID-19, this is the ultimate focus for nearly all businesses in the current climate.
For Atomo Diagnostics their usual business is the design of medical devices for blood-based rapid testing for professional testing and self-testing.
The experience in this field allowed the company to pivot quickly to focus on solutions needed to tackle the COVID-19 pandemic.
In a recent announcement the company mentioned:
- COVID-19 antibody test deal with US company Access Bio completed for North America
- Initial order received from Access Bio for two containers (~250,000 devices) for production builds to support pending product launch in the US
- Import permit received by DIVOC for Indian evaluation with product now submitted, evaluation and product registration anticipated this quarter
- Atomo COVID-19 antibody test approved by TGA
This coupled the acceleration of HIV rollout via Mylan.
Where to from here for Atomo Diagnostics?
Revenue for FY20 was recorded at $5.37 million along with:
- Gross Profit of $3.19 million; Gross Margin of 60% (up from 18%)
- EBITDA loss of $2.38 million (down from $4.08 million in FY19)
While this looks good, it’s still a bit early to say where the stock will go as the company was only listed in April 2020.
The first year after an IPO can traditionally be a bit up and down, more so in a year like 2020.
In the short term:
Source: Optuma
At the time of writing, the price sat in line with the resistance level of 34 cents. Should it fall back, then the level of 32 cents may provide future support, although the recent move of two days down took place in declined volume, indicating the sellers may not be committed to the move.
Should the price move up, then the level of 36 cents may provide future resistance.
Regards,
Carl Wittkopp,
For Money Morning
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