Aussie medical device company Atomo Diagnostics (ASX: AT1), which provides rapid diagnostic tests, witnessed strong growth in revenue and margins across its business ventures, especially its HIV Self-Test business. Thanks to improved awareness and accessibility, the self-test sold over 130,000 units in Q2 FY24, ending December 2023. The sales were primarily in high-value developed markets in Europe and Australia. The test was successfully launched in TESCO supermarkets in the UK.
December also saw the launch of the HIV Self-Test in Germany through pharmacy chain MePro.
FH-Handels GmbH, with displays now in pharmacies across the country. Further expansion into other retail outlets and across other markets in the EU will roll out in 2024.
An order for an additional 220,000 units was received from UK partner Newfoundland, aiming to support product expansion in the UK and Germany and facilitate the launch into new European markets.
Furthermore, significant revenue growth in Australia was observed in December following the formal adoption of HIV Self-Testing into government policy on World AIDS Day. In Australia, Atomo partners with NAPWHA (National Association of People with HIV Australia) and Grindr to boost awareness and access to HIV Self-Tests. The Company also supports existing vending machine programs and plans to expand these initiatives with State governments to enhance brand awareness for future test products.
Besides HIV tests, the Company is seeing a resurgence in demand for its Point-of-Care (POC) Technology Original Equipment Manufacturer (OEM) products following the aftermath of the COVID-19 pandemic.
It has reported the sale of over 50,000 units to existing customers during the specified period, accompanied by an additional order exceeding 50,000 units in January. The approval of Pascal—its rapid diagnostic testing platform—by the US FDA and successful penetration in Over-The-Counter (OTC) channels earlier in FY24 have contributed to increased inquiries for Atomo’s products and technology.
Moreover, Atomo has recently secured an inaugural purchase order from a global diagnostic company, focusing on assessing Atomo cassettes for potential integration with a diagnostic reader system. This resurgence indicates a positive trajectory for Atomo Diagnostics in the evolving landscape of POC technology demand.
In the blood-based Pregnancy Testing space, Atomo and NG Biotech (NGB) are making significant strides. They are in the final stages of responding to data requests from the Therapeutic Goods Administration (TGA). NGB has secured a contract with TOWA Pharmaceutical, covering Italy, Spain, and Portugal. Additionally, a crucial pre-submission meeting with the US FDA was conducted in December, and both companies are now revising clinical plans to support product approvals in the United States.
Overall, its revenue for the quarter stood at $710k (unaudited), contributing to a total product sales revenue of $1.9 million for H1 FY24. This marks a significant increase compared to the product revenues of $1 million (excluding COVID) in the first half of FY23, showing a growth of 98% year over year.
Cash received during the quarter amounted to $1.9 million, with $1.1 million from customers and $761,000 from a Government R&D rebate. The total cash receipts for the first half of FY24 reached $2.8 million.
Atomo concluded the quarter without any debt and held a cash balance of $6.5 million.
Alinda is a Business Reporter for The Sentiment
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