Biocurious: Five years post-pandemic, the Covid ‘hero’ stocks forge a new path

• The life sciences stocks that boomed during the pandemic have applied their experience to fresh approaches 
• Self-test Covid assay developers are finding success with other indications  
• While far from the ‘good ol’ days’, the pandemic taught biotechs to ‘think on their feet’

After the share market’s precipitous plunge in the early months of the pandemic, investors realised the plague sweeping the globe presented unprecedented opportunities for many ASX biotechs.

Our Covid-era heroes duly saluted, rolling out their corona-armoury in areas such as as rapid diagnostic testing, vaccine making, personal protective equipment, hand sanitisers and – for the most ambitious – proposed cure.

What became of them five years later?

As with a class reunion, the passage of time has been kinder to some rather than others. Most have pivoted – the vogue word of the era – into something else.

For some, Covid 19 (the SARS-CoV-2 virus, strictly speaking) still presents opportunities.

News flash: it hasn’t disappeared.

Biotron: ahead of its time

Antiviral drug developer Biotron’s (ASX:BIT) claim to fame was being the first company to mention the term ‘coronavirus’ in a presentation.

That was in 2019, when we all thought Corona was a type of Toyota, or a beer brand.

(That one was amusing back then, for about two seconds).

Biotron stock doubled in the early months of 2020 and then had a second wind in late 2023 on the back of positive HIV and Covid trials.

Last month Biotron reported June quarter cash outflows of $600,000, taking available cash to $932,000.

Biotron is focusing on its hepatitis B program, which completed the first stage of an animal safety study in June.

The company has engaged US mob C14 Consulting to guide on partnering strategies.

These days the market values Biotron at an ungenerous $2 million – but at least it’s still kicking.

Zoono’s ‘sanitised’ story

If any stock best exemplifies the pandemic market zeitgeist, it’s Kiwi-based germ buster Zoono Group (ASX:ZNO).

In 2020 Zoono shares went ballistic after the company declared its hand sanitisers were “99.9%” effective against Covid.

Pity the poor 0.01%, though.

This was at a time when the virus was thought to be contracted from  urfaces, rather than airborne transmission.

Zoono reported revenue of NZ$38 million for the year to June 2020 and an astonishing $16.7 million net profit.

Fast forward to the June 2025 quarter: Zoono recorded receipts of NZ$351,000 and a cash balance of NZ$51,000.

The company also has stock inventory of NZ$5 million, which it hopes to monetise.

Zoono’s direction now lies with food safety. In league with UK mob OSY Group, the company is carrying out 45 separate trials across four continents.

In August 2020 Zoono shares peaked at $2, now they’re worth just over three cents.

Genetic Signatures’ box of tricks

With its portfolio of molecular based (PCR) tests, Genetic Signatures (ASX:GSS) was made for the times.

The company wasted no time getting its rapid Covid test approved locally, in March 2021.

On the back of this, Genetic chalked up sales revenue of $28.3 million in the year to June 30, 2021, 150% higher.

The market then shifted from the PCR tests – which needed to be sent to the lab – to the personal assays.

Luckily Genetic had other tricks up its sleeve: a portfolio of tests for gastro-enteric strains, flavivirus/alphavirus, antibiotic resistant bugs and sexually transmitted infections.

Last year, the US Food & Drug Administration approved Genetic’s Easycreen test.

The assay distinguishes itself from rival tests in that it can detect eight of the most common gastrointestinal pathogens in the one go.

On Monday Genetic announced revenue of $15.9 million, up 63% and narrowed its loss from $17.6 million previously to a $12.7 million deficit.

Lumos shines with Febridx

Lateral flow test maker Lumos Diagnostics (ASX:LDX) listed in July 2021, raising a chunky $63 million on the back of its Covidx Covid test.

Lumos’s fortunes now revolve around Febridx, a finger-prick blood test that can distinguish between bacterial and viral infections (including Covid) within 10 minutes.

In July 2023 the FDA approved Febridx.

Lumos is now in the process of seeking a so-called Clinical Laboratory Improvement Amendment (CLIA) waiver, which means the test can be used by less trained staff such as nurses and receptionists.

In mid-July Lumos shares vaulted 133% after the company entered an exclusive six-year distribution agreement with Phase Scientific, valued at US$317 million (A$487 million).

This is to distribute Febridx in the US.

This is subject to Lumos achieving the CLIA waiver. The company is in the process of recruiting 500 to 800 patients for a requisite trial, across six sites.

Lumos reported June quarter revenue of $2.6 million, mainly from a tie-up with women’s health group Hologic.

Of course, the Febridx revenues are yet to flow from a market opportunity valued at more than US$1 billion a year.

Atomo booms on Lumos deal 

Luck’s a fortune.

Atomo Diagnostics (ASX:AT1) already had a rapid blood-based diagnostic device for HIV, the only self-administered one to be approved by the local Therapeutic Goods Administration.

Naturally, management wasted no time converting this to a Covid test.

Atomo rode the way until “significant commoditisation” of rapid lateral flow tests set in.

These days, Atomo is about providing its single use Pascal cassettes – the hardware that holds the test – to other parties.

Atomo recently secured a US$410,000 deal to supply its cassettes to Lumos.

Following an “exceptional performance” of the devices during Lumos’ CLIA waiver trials, the deal was expanded to a guaranteed US$3.4 million of orders over six years.

But based on the volumes implied by the Lumos/Phase deal, Atomo expects revenue of up to US$6.9 million over the first three years.

Atomo also has other supply agreements in place for testing applications targeting infectious diseases including HIV, syphilis and detecting pregnancy early.

Argent does the ARDS yards

It’s been a while since we heard the term Acute Respiratory Distress Syndrome – ARDS – but Argent Biopharma (ASX:RGT) hasn’t forgotten.

ARDS is the body’s immune reaction to Covid and other viruses, resulting a ‘cytokine storm’ of potentially fatal inflammation.

Argent this week said a US in vivo (mouse model) study of its cannabinoid-based drug candidate showed up to 85% improvement in the viral inflammatory mouse model, relative to the control group.

The University of South Florida carried out the study, without funding or direction from the company.

Argent’s agent, Artemic is an unlicensed drug brand of the company’s lead therapy Cimetra.

Not all fond memories

Nostalgia is not what it used to be.

The human suffering aside, the plague severely disrupted the business of many health stocks – without the upside.

A recurring issue was access to hospitals for trial purposes or to get salespeople through the door.

Even some of high and mighty slipped up, such as global vaccine leader CSL (ASX:CSL).

CSL produced vaccines for Astra Zeneca at its local facilities, but also backed a promising University of Queensland prophylactic.

In 2023 the company canned the program after it emerged the candidate could result in false positive HIV results.

Stem cell developer Mesoblast (ASX:MSB) copped a class action over claims it misrepresented the results of a large trial for ventilator-dependent patients.

Collaboration partner Novartis cut ties with the company.

Mesoblast eventually settled the claim. In December last year the company finally won FDA approval for is paediatric graft-versus-host disease therapy.

Hopefully we all learned something along the way and are at least vaguely ready for the next pandemic.

In the words of Fierce Biotech: “Covid forced biotechs to think on their feet”.