The only positive coming out of the Covid situation in NSW is the recognition and acceptance of Rapid Antigen Testing as opposed to PCR testing. Along with vaccinations, RATs will assist in managing Covid. In my opinion, if and when Australia reaches 80% vaccinations, free PCR testing will no longer be provided. The government has spent too much on testing, vaccinations and financial support. There has to be a limit and the onus will then fall on businesses and individuals to keep their businesses and families safe. Covid is here to stay and vaccinations have shown that they reduce the severity of the infections but not entirely. There will still be deaths and hospitalisation from Covid.
Rapid Antigen Testing will become the norm for testing because it will be easy and cheaper than PCR testing. Big business and medical practitioners will rely on RATs because of the quick turn around of results. Most of the bigger companies will employ their own health professional that are qualified to carry out the testing. Places like Nursing homes and other vulnerable areas will require a RAT before entry for staff and visitors despite the vaccination rate. Vaccination Certificates are not going to be enough on their own to prevent the spread. Testing and isolation will still be required.
This is where the Eugeni platform will be used and because it requires a Health care professional to use it, it will become the alternative to PCR testing. The home test is not Anteotech's market.
Until TGA approval is given, it will not be available in Australia. Australia is such a small market compared to the rest of the world, so TGA approval is not that relevant at the moment. The larger volume of sales will come from Asia and Europe.
It is going to take time for large volume sales to be generated because of the time lag required for manufacture and market penetration. ADO has not missed the boat because of the so called delay for TGA approval because it was not high on the agenda for Anteotech as the target market is overseas. The journey has a long way to go and the company is following its strategy and vision.
The current share price has settled from its hype and the market is aware of the time frame required but as the company grows so will the share price.
All IMHO.
ADO Price at posting:
17.3¢ Sentiment: Buy Disclosure: Held
