What's happening with the Rhythm (ASX:RHY) share price today?

The Rhythm Biosciences Ltd (ASX: RHY) share price is sinking today, despite announcing a positive update to its ColoSTAT trial program.

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The Rhythm Biosciences Ltd (ASX: RHY) share price is sinking today, despite announcing an additional site to its ColoSTAT clinical trial program.

During the first hour of open, shares in the medical device company fell to an intraday low of $1.435. However, some bargain hunter swopped in on the opportunity, rebounding the price to $1.44, down 7.4% in afternoon trade.

What did Rhythm announce?

The Rhythm share price is on the move in the opposite direction after announcing a positive update.

According to its release, Rhythm advised that the Sunshine Coast University Hospital in Queensland will participate in the ColoSTAT trial. This will be the tenth site that is now aiming to study the safety and effectiveness of the prototype test kits.

Rhythm's ColoSTAT is an experimental test-kit that is being trialled as a low-cost, easy-to-use blood test to detect colorectal cancer.

Located just 9 kilometres north from Caloundra, the hospital has become the first site to undertake ColoSTAT trials within the state. The hospital provides an array of public health services across Sunshine Coast, Gympie, and Noosa communities. Furthermore, the building houses a dedicated centre for clinical research programs including gastroenterology nurses as study coordinators to facilitate recruitment.

The company appointed principal investigator, Dr. Andrew Sloss, to oversee the ColoSTAT clinical trials. Dr. Sloss is a respected Gastroenterologist and Senior Lecturer at the University of Queensland.

Management commentary

Principal investigator, Dr. Andrew Sloss, commented on the prospects of advancing ColoSTAT. He said:

We currently treat hundreds of bowel cancer patients each year, which highlights the significant public need for effective screening and early intervention. ColoSTAT presents us with this opportunity to do both, ultimately easing the burden on the health system, and more importantly, to save lives.

Rhythm CEO, Mr. Glenn Gilbert added:

A milestone of ten sites now participating in our ColoSTAT clinical trial ensures we remain on track to positively impact people's lives, by delivering a simple way to detect colorectal cancer early. Whilst an Australian invention, beginning at the CSIRO, Rhythm's aim is to address the global market through mass screening programs.

About the Rhythm share price

The Rhythm share price has been one of the best performers over the last 12 months, rising more than 1,500%. The company's shares were trading at 4.1 cents in March before accelerating later that year.

It is worth noting that the Rhythm share price is trading just below its all-time high of $1.60, reached yesterday.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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