The Rhythm Biosciences Ltd (ASX: RHY) share price is on the move today. This comes after the company revealed its intentions to expand ColoSTAT into new cancer markets.
At the time of writing, the medical device company's shares are trading for $1.75 cents, up 4.79%.
What's driving the Rhythm share price higher?
Investors are fighting to get a hold of Rhythm shares after digesting the company's encouraging announcement.
According to the release, Rhythm advised that it has identified five new cancer detection markets to expand its platform technology.
As such, ColoSTAT is believed to hold multi-cancer detection properties, which could provide a foundation to expand the platform. Cancer markets include breast, cervical, lung, gastric, and pancreatic.
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.
It is estimated that around 850,000 people lose their life from colorectal cancer each year. In the United States, Europe, and Australia, over 130 million people aged between 50-74 years are unscreened for colorectal cancer. This represents an addressable market opportunity of more than $6.5 billion.
The strategic plan to expand the technological platform will form part of a research and development program. This is expected to follow a similar commercial pathway as to ColoSTAT.
The program will have access to $0.75 million worth of funds sourced from the company's last capital raising. In addition, the program could be eligible for the government R&D tax incentive rebate as well as other grants.
Rhythm CEO and managing director, Glenn Gilbert commented:
As we move closer to the launch of our initial cancer detection product ColoSTAT in 2022, the Company is making positive progress with respect to its broader strategy to leverage our cancer detection technology into other global cancer markets. Ultimately, Rhythm believes it can make a meaningful impact for improved health outcomes across millions of people around the world.
More on the Rhythm share price
The Rhythm share price has accelerated by 110% in the past 12 months, reflecting positive investor sentiment. Additionally, the company's shares reached an all-time high of $2.08 last month, before treading slightly lower.
At today's prices, Rhythm presides a market capitalisation of roughly $365.54 million, with approximately 208.88 million shares on issue.
