Fund Manager note on AT1

December 2021 - Ellerston Capital note on AT1:

Atomo Diagnostics (AT1 AU) delivered a 33% return in December. AT1 is a medical device company focused on the supply of rapid test products, notably having a commercial agreement for the supply of COVID-19 Rapid Antigen Tests (RATs) into the Australian market. AT1 has TGA approval for the supply of RATs for professional settings, and has an application submitted to the TGA for its self-test product. Fortuitously, AT1 announced in October 2021 that is had locked in a commercial supply agreement for 10 million professional-use RATs, as well as the right to purchase an additional 10 million self-test RATs should TGA approval be granted. A key concern across Australia relates to shortages of these tests and therefore there is a significant revenue and valuation opportunity should AT1 attain TGA approvals. We remain positive on AT1.