Rhythm Biosciences (ASX: RHY) share price slumps amid ‘pivotal’ board changes

This healthcare company is developing a blood test to detect colorectal cancer

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The Rhythm Biosciences Ltd (ASX: RHY) share price is in the red today after the company announced a board and management restructure.

At the time of writing, the cancer diagnostics company is trading down 4.26% at $1.76. This follows a stellar day in the market on Tuesday which saw the Rhythm Biosciences share price surge 11.21% to an intraday high of $2 before closing at $1.83.

What did Rhythm Biosciences announce today?  

In today’s release, the company announced significant changes to the board and management structure, effective immediately.

Non-executive chair Otto Buttula moves to executive chair, while CEO Glenn Gilbert joins the board as a managing director.

The promotion for Buttula will see his pay increase from $84,000 to $150,000, while Gilbert’s take-home salary will stay the same.    

Commenting on the changes, Buttula said:

The board has decided to make these changes at a pivotal time to leverage Glenn and my joint experience driving corporate and commercial scale-up activities. Glenn has already established a robust platform that has positioned Rhythm to continue maximising value for all stakeholders.

I view this executive function for the chair to be a short-term, but important role to provide further executive corporate support to the company as it enters several critical commercialization agreements across the globe.

What else is news at Rhythm Biosciences?

Investors appeared to welcome an announcement from the company yesterday which included an update on its ColoStat blood test for detecting colorectal cancer.  

The company said it had achieved a major regulatory milestone for the commercialisation of ColoStat, paving the way for commersialisation in global markets including Europe.

According to Rhythm Biosciences, Colostat will reduce health costs, sickness and deaths associated with colorectal cancer by increasing current screening rates.

Rhythm Biosciences share price snapshot

The Rhythm Biosciences share price has skyrocketed this year, up 187.7% in the past 12 months.

On Tuesday, the share price was in the green 7.4% at the close after the ColoStat regulatory milestone.

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.

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