ASX Health Stocks: Atomo up over 20pc on Budget boost for HIV self-test kits

Atomo says Budget will boost its business

Atomo Diagnostics (ASX:AT1) says the just announced Federal Budget will significantly support HIV Self-Testing in the country, and will be a big tailwind for its business.

The Government announced on Tuesday that people with or at risk of HIV will receive unprecedented support of $43.9 million through better prevention, testing, workforce training and information.

This means that more people in at-risk groups will get free HIV self-test kits through the expanded national HIV self-test mail-out program.

The Government also intends to expand the South Australia-based HIV testing vending machine pilot to every state and territory, meaning that more people around Australia will get wider access to HIV testing.

The boost in funding comes after the Government’s HIV Taskforce finally acknowledged last November how crucial self-testing is for Australia to hit its HIV goal – which is full eradication by 2030.

Atomo has the only HIV Self-Test that’s legit on the Australian Register of Therapeutic Goods (ARTG).

The company says it will now stay committed to keeping this momentum going, working with the government and other stakeholders to make sure everyone can access quality HIV self-tests without any roadblocks, helping to reach the 2030 target.

Atomo CEO John Kelly said he was excited to see the Government fund the rapid expansion of the national HIV self-test mail-out program, and the HIV self-test vending machine pilots.

“Both have proven extremely successful in increasing testing rates among groups not currently testing via healthcare facility-based services,” said Kelly.

Atomo’s HIV Self Kit

The Atomo HIV Self Test is designed to detect antibodies in human blood to determine HIV infection. This is a single-use screening test that gives a result in 15 minutes.

In April, the company secured significant purchase orders from Viatris Healthcare for approximately $570k worth of HIV Self-Tests, manufactured by Atomo under the Mylan brand for supply to several Low- and Middle-Income Countries (LMICs).

Atomo considered the revenue from these orders to be material.

Currently, there is no cure for HIV, or AIDS, but with correct medical treatment it can be managed as a non-life threatening condition.

With early diagnosis and treatment, the life expectancy for someone with HIV can be similar to that of someone who does not have HIV.

The Atomo stock price rose by over +20% today.