At the time of writing, Rhythm Biosciences shares are changing hands at $1.50 each, signifying an 11% gain on the day.
Here are the details out of Rhythm’s camp today.
What was announced?
Rhythm gave a presentation regarding its “simple, low-cost blood test for the early detection of colorectal cancer”, known as ColoSTAT.
The company explains that ColoSTAT is a disruptive and transformative technology that is significantly cheaper and easier to administer than competing tests.
In fact, the assay format of ColoSTAT is designed to “integrate with existing pathology lab infrastructure” using a combination of a test kit and an algorithm to analyse the results.
It appears the company expects tremendous growth for the industry, forecasting a US$38 billion total addressable “screening value” and a total addressable market of 771 million people.
It forecasts it has the potential to reach 1 billion people if the screening age is lowered to 45 years old. This is based on what the US Preventative Services Task Force is currently advocating.
If Rhythm wants to successfully commercialise the product, its tests “must demonstrate both sensitivity greater than or equal to 74% and specificity greater than or equal to 90%”.
According to the company, it would meet these requirements in the US now “based on the study 6 performance of 84% sensitivity and 95% specificity”.
Aside from this, the company has also filed intellectual property (IP) patents in all its major target markets.
The patent, which expires in 2031, has been granted in a number of jurisdictions with just India pending.
Rhythm is targeting initial revenues for the product in late 2022 and it has already commenced its “platform technology pipeline for additional cancer detection tests”.
What’s next for Rhythm Biosciences?
The presentation also contained several “future value inflection points” that may weigh in on the Rhythm Biosciences share price.
It stated that it expects CE Mark submission and approval in Europe to be completed in late 2021. At the same time, it has progressed regulatory post-clinical trial recruitment in Australia for its “Study 7”.
As well, it will continue progressing its IP approvals in different markets while building out its sales and distribution channels for ColoSTAT.
Rhythm Biosciences share price snapshot
The Rhythm Biosciences share price has been an outsized winner this year to date posting a return of 72% since January 1. Indeed, it’s up almost 14% over the last month alone.
On a 12 month basis, the company’s shares have rallied an incredible 618%.
These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)’s climb of around 21% over the same time.