It seems like Rhythm Biosciences Ltd (ASX: RHY) can do no wrong by investors at the moment. Today, the company's shares have risen to another all-time high record following the update on the initial manufacturing of ColoSTAT.
During early morning trade, the Rhythm share price rose to an intraday high of $1.38. However, some profit taking have led its share to slightly retreat to, at the time of writing, $1.35, up 7.14%.
What's driving the Rhythm share price to new highs?
The Rhythm share price is breaking new highs as investors are fighting to get a hold of its shares.
In its announcement, Rhythm advised that its global manufacturer, Biotem, has completed initial ColoSTAT prototype test kits. The small-scale production of ColoSTAT devices commenced in December, with delivery fulfilled ahead of schedule later that month.
Having received the first prototype units, Rhythm began testing the performance of ColoSTAT test kits with cancerous and healthy blood samples. The company noted that full testing is underway and will form Study 6, due to be completed by March 2021.
Rhythm noted that early quality assurance and performance test work is consistent with its own prototype test results.
Room for improvement
In addition to the assembly of ColoSTAT, the company stated that it has continued its efforts in advancing the technology behind the test kit. The current version, which is considered far superior than the current market standard faecal test, is undergoing improvements.
Rhythm advised it has allocated extra resources to its algorithm and software development division to enhance the existing technology on offer. As more samples arrive, it will use this to create a larger dataset to assess any performance changes made. New developments will be applied to study 7 and onward.
CEO commentary
Rhythm CEO, Mr Glenn Gilbert, hailed the milestone achievement, saying:
The objective of design transfer of the core ColoSTAT technology to our global manufacturer, Biotem, is to demonstrate that they are able to produce, in a commercial setting, the same consistent and high performing ColoSTAT test kit that Rhythm had achieved in lab.
The early view on the performance of the test kits manufactured by Biotem provides further confidence on our underlying technology that will drive the success of ColoSTAT into the future.
