Rhythm Biosciences (ASX:RHY) share price rockets amid US$12bn market opportunity

This healthcare company is targeting a lucrative market…

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Rhythm Biosciences Ltd (ASX: RHY) share price is on fire on Tuesday morning.

At the time of writing, the cancer diagnostics technology company’s shares are up 15% to $1.90.

This means the Rhythm Biosciences share price is now up an impressive 68% in 2021.

Why is the Rhythm Biosciences share price rocketing higher today?

Investors have been bidding the Rhythm Biosciences share price higher today following the release of an update relating to its ColoSTAT product.

ColoSTAT is a simple, low-cost, blood test for global mass market detection of colorectal cancer. The company notes that colorectal cancer is the third most common cancer in men and the second most common in women globally, accounting for an estimated 1.9 million new cases and 935,000 deaths annually.

According to today’s release, the company has achieved a major regulatory milestone for the commercialisation of ColoSTAT. The product has been granted CE Mark and fully conforms with the European Directives for IVD Medical Devices.

Management highlights that this critical regulatory achievement is a result of robust and stringent analytical testing and adherence to design and development procedures.

Rhythm Biosciences’ CEO, Glenn Gilbert, said: “The achievement of this regulatory milestone continues to validate our commercial pathway into significant global markets, with Europe alone representing a massive addressable population of over 231 million people. This significant achievement represents an initial step change in the Company and is a testament to the dedication and commitment of the entire Rhythm team. Rhythm is currently assessing its commercialisation options to market ColoSTAT into Europe.”

What’s next?

The company notes that being granted CE Mark was a critical component in its commercial plan and priority market entry strategy. It allows Rhythm to commercialise, market and sell ColoSTAT in a significant global market across Europe and other countries which recognise CE.

Management estimates that this customer market currently represents an addressable screening population of over 231 million people, with a combined value of US$12 billion.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Share Gainers

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today

These ASX shares are ending the week strongly...

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Share Gainers

This ASX healthcare company just got FDA approval, and its share price is soaring 18%

Invex Therapeutics is exciting the market today after announcing some big news.

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Energy Shares

Why are ASX 200 coal shares having another cracker of a day?

Why are coal shares performing so well today?

Read more »

Group of thoughtful business people with eyeglasses reading documents in the office.
Financial Shares

Up 12% in a month, is the AMP share price finally on the comeback trail?

AMP shares are making gains but remain under pressure.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Resources Shares

Guess which ASX copper share has exploded 182% this week?

This ASX copper share has risen 182% since last week alone...

Read more »

Woman using laptop sitting in cloud cheering
Mergers & Acquisitions

Why is the PTB share price rocketing 35%?

The company's shares are flying today with a takeover offer on the table

Read more »

Rising marijuana share price.
Share Gainers

Up 35% in a month, is the Incannex share price on the comeback trail?

The cannabis player continues to post tidy gains on the chart.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why CSL, IPH, Renascor, and Treasury Wine shares are pushing higher

These ASX shares are having strong days. Here's why...

Read more »