Rhinomed shares (ASX: RNO), which are now trading at 82%, have increased their price after the wearable nose and respiratory technology company received orders from the NSW Government to purchase its self-administered nasal strips.
As part of a program supporting testing capability, the group began supplying NSW Health Pathology an initial 1 million Rhinoswabs.
These orders will be fulfilled in the coming weeks. Rhinomed is currently expanding its manufacturing capabilities to meet growing demand domestically and internationally for its innovative technology.
These are the company’s strengths: The ease and comfort of the swabs and the ability to capture larger samples and speed up the collection process. This significantly reduces waiting times.
It works with existing polymerase chains reaction (PCR) pathology workflows. The technology is comparable in cost and quality to standard care nasopharyngeal samples from the US and Europe.
Rhinomed CEO Michael Johnson said, “We are delighted to receive this support für this Australian innovation.”
The Rhinoswab is able to make a significant impact on the SARS/CoV-2 testing process, and allow more people to be tested quickly.
“With nearly two billion SARS-CoV-2 test performed worldwide in the past 18 months, including close to 26 million* in Australia, there’s a huge opportunity for Rhinoswab. This will allow them to dramatically improve the testing process and clinical outcomes.
This announcement contrasts sharply with where Rhinomed was in August 2020. Its shares had fallen by three quarters the previous year. Rhinomed had placed its hopes on a vaporizer for medicinal cannabis, despite the fact that Pronto Sleep was being commercialized in the United States. This was a declining market.
Just as the company’s leadership had taken advantage of the booming medical cannabis market in 2018, it announced in September 2020 the realization of a logical COVID pivot; not only an intention but also the declaration of advanced technology for a nasal swab that can take samples from the nose to determine if there are any upper respiratory tract diseases. The shares rose 50 per cent in one day from 8cps and 12cps.
Johnson stated that Johnson was proving the point that mass, high-frequency testing could prove to be an important tool for managing epidemics, pandemics, and other infectious disease outbreaks.
“Rhinomed believes a simple, effective and comfortable nasal swab, that anyone can use every day, could be a key to achieving this goal.”
He stated that the company was quickly looking for manufacturing solutions and would soon register the device in Australia and the USA. All these goals were achieved in less than a year. Rhinoswab has been registered with the US Food and Drug Administration, the Australian Therapeutic Goods Association and a European CE (Conformite Europaenne) mark.
Today’s news brought RNO shares to $0.365 per share. Revenue from the initial order is expected to represent 25-35% of FY21 unaudited revenues of $3.9million. The company’s market capitalisation stands at over $92 million as of the writing. This is a clear sign that investors believe profits will follow.
The interim results of a comparison study with 204 participants at CWZ, Radboud University Medical Center and a leading teaching hospital Nijmegen, the Netherlands, were in line with previous user study results. Participants showed a strong preference for Rhinoswab over the traditional nasal swab.
- 98% of respondents preferred Rhinoswab over the Nasopharyngeal Swab
- 98% of Rhinoswab users felt no pain, compared to 48% with Nasopharyngeal Swab.
- 98% of respondents said they needed very little to no guidance while using Rhinoswab.