ASX Health Stocks: Atomo pops 90pc after purchase order; AdAlta up 20pc on Phase 1 results

Atomo jumps 90pc after reporting a significant sales order
AdAlta up 20pc after revealing key results from Phase 1 study
Race Oncology’s drug shows potent anticancer activity

Atomo up 90pc on HIV kit sales

Atomo Diagnostics (ASX:AT1) rocketed by as much as 90% this morning after announcing that it has secured a significant order for its HIV Self-Tests.

Atomo said it secured purchase orders from US-based Viatris Healthcare for approximately $970k worth of HIV Self-Tests, manufactured by Atomo under the Mylan brand, for supply to a number of Low- and Middle-Income Countries (LMICs).

Atomo considers the revenue from these orders to be material.

“We have seen growing demand during FY24 for the Atomo HIV Self-Test here in Australia, as well as across branded versions supplied to international markets,” said Atomo CEO, John Kelly.

“Following significant increases in sales to Europe and in Australia, it is good to now see emergent demand across LMIC markets from our global health partner for HIV testing, Viatris.”

What does Atomo do?

Atomo’s HIV self-test kit provides results rapidly, typically within minutes.

The product is known for its ease of use and accuracy, and was recently launched in Tesco supermarkets across the UK, as well as in pharmacy stores across Germany.

In Africa, the Test Kit continues to be promoted under the brand Mylan.

Apart from HIV test kits, Atomo also owns a portfolio of patents and device development that improve swab and saliva rapid testing.

The company’s AtomoRapid ‘Pascal’ RDT platform meanwhile was designed to make rapid testing easier and more accessible.

The handheld platform includes a unique integrated buffer delivery mechanism that delivers the required quantity of chase buffer at the touch of a button.

AdAlta says drug could be progressed to Phase 2

In other news, AdAlta (ASX:1AD) jumped 20% this morning after announcing key results from its Phase 1 extension study of lead asset AD-214, a drug for fibrotic diseases.

AdAlta says the results have positively answered key partnering discussion questions to support progressing AD-214 to Phase II clinical studies in Idiopathic Pulmonary Fibrosis (IPF).

In the Phase 1 study, AD-214 was well tolerated, confirming the excellent safety profile of the molecule.

AD-214’s engagement with its target receptor, pharmacodynamics – PD – was consistent with prior studies and consistent across all four doses.

Results from Phase 1 also showed no evidence of antidrug effects, or other effects that might detract from efficacy after extended use in diseases such as IPF.

These results are now being shared with existing pipeline of potential partners, with a view to progressing a licensing or financing transaction in the near term.

Race Oncology’s potential new drug for leukemia

Meanwhile, Race Oncology (ASX:RAC) says its bisantrene drug shows potent anticancer activity in diverse cell and animal models of Acute Myeloid Leukemia (AML).

In particular, the combination of bisantrene and decitabine exhibits robust anticancer synergy in both cell and mouse AML models.

Race has just presented results from its pre-clinical studies exploring the combination of bisantrene and decitabine as a new treatment for AML at the New Directions in Leukaemia Research conference in Adelaide (March 4-6, 2024).

Data from this study is expected to be submitted for publication in a high-impact peer reviewed journal in 2024.