Atomo Diagnostics (ASX: AT1) has marked another milestone in expanding Australia’s public health infrastructure, with a significant new order for HIV self-testing kits valued at approximately $440,000. The order comes from the National Association of People with HIV Australia (NAPWHA) for its HIV Self-Test mail-out initiative, a program now backed by federal government funding to increase accessible testing nationwide.
The order represents not only an important contract for Atomo but also highlights a shift in public health strategies, with increased focus on decentralised, accessible self-testing. Through the NAPWHA program, these kits are available free of charge, aiming to encourage more Australians to test for HIV conveniently from their homes. The project is further supported by Grindr, the global social networking platform for the LGBTIQ+ community, which facilitates access and awareness by linking users to testing resources.
John Kelly, CEO of Atomo, expressed satisfaction with the program’s growth and the rising emphasis on self-testing as an effective public health tool. “We are delighted to see HIV self-testing continue to be an increasingly important public health channel for delivering decentralised HIV testing,” Kelly noted, underlining Atomo’s commitment to expanding testing access and privacy in collaboration with public health bodies like NAPWHA.
A Broader Market and Funding Base
This latest order for the HIV Self-Test is part of a broader trend towards self-administered health solutions, boosted by government backing. Under the new public HIV health policy announced in the May federal budget, Australia is expanding funding for programs that provide accessible, at-home testing. For Atomo, which holds the distinction of supplying the only HIV Self-Test registered with the Australian Register of Therapeutic Goods (ARTG), this policy shift translates into substantial demand and validation of its product in the domestic market.
The HIV Self-Test segment has already demonstrated strong demand growth. In its recent Q1 FY25 results, Atomo reported a notable increase in HIV test sales to $635,000, driven in part by orders through NAPWHA's mail-out program. The company also expanded its reach beyond Australia, shipping its first order for an Eastern European variant, due to be released in November, following successful entries in the UK and German retail markets.
Strategic Health Partnerships and Future Developments
The federal support for the HIV Self-Test project aligns with Atomo’s ongoing partnerships with health-focused organisations. Beyond HIV, the company is advancing a world-first rapid test for active syphilis in collaboration with the Burnet Institute, backed by a $2.44 million CRC-P grant from the Australian government. This syphilis test, being developed on Atomo’s Pascal platform, aims to help address Australia’s rising syphilis rates, which have tripled over the past decade according to the Kirby Institute.
Atomo's venture into other testing areas, such as liver function monitoring, adds to its growing portfolio of rapid diagnostic tests. This diversified approach not only broadens Atomo’s product line but strategically positions the company within both public health and consumer retail markets, with implications for long-term revenue growth.
Financial Health and Market Position
Financially, Atomo ended Q1 FY25 with $2.61 million in cash reserves, supplemented by a recent $753,000 ATO rebate for its R&D investments. The company has significantly cut operational costs by 18% compared to Q1 FY24, positioning itself in a leaner operational structure as it scales production and distribution. With the EU’s new In Vitro Diagnostic Regulation (IVDR) requirements approaching, Atomo’s successful first audit in South Africa and upcoming November audit in Sydney underscore the company’s readiness for continued European market access.
With its streamlined operations, government-backed partnerships, and an expanding product line tailored to emerging health concerns, Atomo looks set to maintain its growth trajectory in Australia and abroad. The NAPWHA partnership exemplifies how Atomo is integrating into federal health initiatives, marking a promising pathway for sustained relevance in the increasingly vital at-home testing sector.
