Atomo Diagnostics reports a robust Q2 FY25 with $1.2 million revenue driven by HIV self-test sales and a significant $2.44 million government grant for syphilis test development. The company advances its market footprint in Australia and New Zealand while maintaining a strong cash position.
- Q2 FY25 revenue of $1.2 million, H1 total approximately $2.1 million
- Secured $2.44 million CRC-P government grant for novel syphilis test development
- Received $440k order for HIV self-tests in Australia via government-funded program
- Expanded Australian pharmacy network and preparing New Zealand market launch
- Operating costs reduced by 7%, ended quarter debt-free with $2.9 million cash
Strong Revenue Growth and Market Expansion
Atomo Diagnostics Limited (ASX: AT1) has delivered a solid quarterly performance for Q2 FY25, reporting unaudited revenue of $1.2 million and a half-year total of approximately $2.1 million. This growth is primarily driven by increased sales of its HIV self-test kits, particularly in developed markets such as Australia, where margins have improved compared to earlier global health market deployments.
The company secured a notable $440,000 order for HIV self-tests to be distributed through the National Association of People with HIV Australia (NAPWHA) online portal, a government-funded initiative aimed at expanding access to free testing. This order underscores the growing acceptance of self-testing within public health procurement policies.
Government Grant Accelerates Syphilis Test Development
Atomo also announced the execution of a $2.44 million Cooperative Research Centres Projects (CRC-P) grant with the Australian Federal Government. This funding supports the completion of a novel rapid syphilis test developed on Atomo’s proprietary Pascal cassette platform. The test’s design allows for both self-testing and clinical use, potentially broadening its market reach significantly.
The initial grant payment of $485,000 was received in December 2024, enabling Atomo to progress development in partnership with the Burnet Institute and IDE Group. The company anticipates finalising a commercialisation agreement with the Burnet Institute shortly, positioning the syphilis test for global market opportunities.
Strategic Partnerships and Market Development
During the quarter, Atomo expanded its Australian pharmacy network by onboarding 41 new outlets and is preparing for a commercial launch in New Zealand through a leading national pharmacy chain scheduled for April 2025. The company is also supporting state-level partners to scale access to free HIV tests via vending machines, with a significant increase in orders expected as these machines become operational.
Post-quarter, Atomo renegotiated its European partnership with Newfoundland Diagnostics, securing a long-term agreement valued at A$5.44 million through to mid-2030. This deal strengthens Atomo’s presence in the rapidly growing pharmacy and retail rapid test market across the UK and Europe, leveraging Newfoundland’s established channels including Boots and Tesco.
Financial Discipline and Cash Position
Atomo reported a 7% reduction in operating costs for the first half of FY25 compared to the prior year, reflecting disciplined cost management. Cash receipts during the quarter totalled approximately $3 million, including customer payments, government R&D rebates, and the initial syphilis grant payment. The company ended the quarter debt-free with $2.9 million in cash, up from $2.6 million at the previous quarter-end.
Innovation Pipeline and Future Priorities
Beyond infectious disease testing, Atomo is advancing new product initiatives such as the Florey clip-in blood test device and a standalone blood transfer device designed to improve sample accuracy and usability. These developments aim to expand Atomo’s rapid test technology into adjacent markets with lower regulatory barriers.
Looking ahead, Atomo’s key priorities for 2025 include growing HIV sales channels internationally, progressing the Pascal syphilis test through clinical trials and regulatory approvals, and expanding OEM sales channels, particularly in the US market pending regulatory clearances.
Bottom Line?
Atomo’s blend of government-backed innovation and expanding commercial footprint sets the stage for accelerated growth, but regulatory milestones and market adoption remain critical to watch.
Questions in the middle?
- How will Atomo navigate regulatory approvals for the syphilis test in key markets like the US and LMICs?
- What impact will the expanded European partnership have on Atomo’s revenue diversification and margins?
- Can Atomo sustain its cost discipline while scaling new product development and market launches?