The Atomo Diagnostics Ltd (ASX: AT1) share price is charging higher this morning after expanding its COVID-19 testing partnership with a French biotech company.

Atomo Diagnostics is a medical device company that supplies rapid diagnostic test (RDT) devices to the global diagnostic market. Its RDT platforms simplify testing procedures and enhance usability for both professional users and untrained self-testers. The company has supply agreements in place for tests targeting infectious diseases such as HIV and COVID-19.

Atomo Diagnostics shares are fresh on the ASX scene after listing on 16 April 2020 at an issue price of 20 cents per share. At the time of writing, Atomo Diagnostics shares are changing hands at 34.5 cents per share – 9.52% higher for the day and 72.5% higher than the IPO price. The company’s market capitalisation is currently sitting just below $200 million.

What did Atomo Diagnostics announce?

After the market closed yesterday, Atomo revealed it has expanded its COVID-19 rapid test partnership with NG Biotech.

Under the existing agreement, Atomo has been supplying NG Biotech with its Galileo rapid test device for use in NG Biotech’s COVID-19 antibody tests. The initial order under the agreement was for 397,200 devices, with NG Biotech having the right to purchase up to 2.465 million devices.

To date, NG Biotech has ordered more than 1.5 million Galileo devices for testing in France. NG Biotech’s test has been CE Marked for professional use in Europe and results are obtained from a drop of blood in 15 minutes.

Under the expansion of the partnership, Atomo now has exclusive rights to market and distribute the COVID-19 antibody test in Australia, New Zealand, and a number of countries in South East Asia – subject to obtaining regulatory approvals in each jurisdiction. The test will be marketed and distributed under the brand ‘AtomoRapid COVID-19 (IgG/IgM)’ and Atomo will be the listed manufacturer.

The pricing arrangements with NG Biotech are limited to a price payable per unit only and do not include any license fees or royalties.

Atomo noted that the period of exclusivity is not currently limited and it is in the process of negotiating a definitive long-term supply agreement with NG Biotech.

What now?

Atomo will now progress regulatory applications within the relevant jurisdictions in the coming months. Based on an assessment of regulatory pathways, the company’s initial focus will be Australia, the Philippines, Hong Kong and Taiwan.

Commenting on the partnership expansion, Atomo’s co-founder and managing director John Kelly said:

“Atomo is delighted to have secured exclusive rights to market, as the listed manufacturer, the COVID19 test which NG Biotech has successfully launched in Europe with initial sales to the French Ministry of the Armies (Defence) and a number of public hospitals, following strong results in independent French clinical studies.”

More reading

• Is the Westpac share price too high?
• The Xero share price just hit a record high: Is it too late to invest?
• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares
• Qantas share price soars on plans to increase domestic flights

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Atomo Diagnostics share price charges higher on expanded COVID-19 testing partnership appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gXTYwo

The Westpac Banking Corp (ASX: WBC) share price had another strong day yesterday, surging 1.28% to $18.18 per share.

While the S&P/ASX 200 Index (ASX: XJO) edged 0.84% higher, Westpac was one of the ASX 200 shares leading the way.

At the time of writing, shares in the Aussie bank were up 5.57% this week, but are they overvalued today?

Is the Westpac share price overvalued?

The ASX bank shares have been on a rollercoaster ride in 2020. The Westpac share price slumped as low as $13.47 in mid-March amid the bear market.

There’s been a strong rebound since, despite weak economic data and Australia heading towards a recession. But Westpac may no longer be the bargain buy it once was. 

Many, including Westpac, announced billions of dollars of impairments in April and May due to COVID-19. However, loan quality may not deteriorate if the economy bounces back quicker than expected.

But all of this seems to ignore the impending recession and its impact on the Aussie economy. The share market is inherently forward-looking but I don’t think all economic impacts are fully priced in.

There’s a lot of cash flying around in markets right now. With interest rates sitting as little as 0.25%, not many people like the idea of savings accounts or bonds for a strong return.

That means you could look towards ASX shares. The Westpac share price is still a long way down from its $30.05 52-week high. It’s been a big 12 months for the Aussie bank highlighted by its AUSTRAC scandal and the subsequent fallout.

Foolish takeaway

I still think the Westpac share price could climb higher and surpass $20 per share in 2020. There could be more volatility ahead, but that’s not necessarily a bad thing if you’re a long-term investor who is willing to buy and hold.

More reading

• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%, travel shares fly higher
• This ASX 200 stock is well placed to beat earnings expectations

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Westpac share price too high? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dMv417