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Key points
- The Rhythm Biosciences share price finished the day up by more than 8% after earlier jumping by 19%
- The diagnostics company released its latest quarterly results today
- Its colorectal cancer detection product, ColoSTAT, is set to gain EU and UK commercial exposure
Among the business results, the diagnostic technology company released an update on its core product, ColoSTAT — a low-cost blood test used for the detection of colorectal cancer.
At the close of trading, the Rhythm Biosciences share price was up 8.43% at $1.35. During intra-day trade, it hit a high of $1.49, a gain of 19.2% on its previous closing price.
Let's dive in and dissect this update…
What did Rhythm Biosciences report?
The Rhythm Biosciences share price jumped into the green after the company reported a total of $5.5 million cash in the bank for the period ending 31 December 2021. (This excluded a placement of $6.5 million before costs which was completed this month).
Secondly, it received a rebate of $2.4 million from its R&D Tax Incentive claim, in which the Australian government "encourages companies to engage in R&D programs by providing a refundable tax offset of up to 43.5% on eligible activities".
Thirdly, it made three executive and non-executive enrolments to its board, including CEO Glenn Gilbert additionally taking on the role of managing director.
But probably most notable for the healthcare company was the progressing commercialisation of its product — the ColoSTAT.
ColoSTAT EU exposure
Rhythm Biosciences' ColoSTAT product was recently granted a "CE Mark". This means it has met all provisions of EU legislation required to be sold within the European Economic Area (EEA).
According to Listcorp, colorectal cancer — which the ColoSTAT aims to detect — is the third most common form of cancer for men, and second for women.
This certification exposes the company to 231 million people and a market valued at US$12 billion.
And since the quarter, its CE Mark certification now encapsulates England, Wales, Scotland, and Northern Ireland.
While the company is continuing to test its product to ensure "highly accurate, consistent and reproducible results" — at 84% sensitivity and 95% specificity — it has confirmed the product "significantly outperforms the current market testing regime, by as much as 33%".
The company is therefore confident it will perform well in the market.
Looking forward, Rhythm Biosciences has employed a "platform expansion program", using similar technology of ColoSTAT to diagnose other types of cancers.
Breast, cervical, lung, gastric, and pancreatic cancers are to be targeted for similar commercial pathways.
Rhythm Biosciences share price snapshot
The Rhythm Biosciences share price has jumped by 48% in the last six months. However, it is down around 12% this year to date.
The company has a market capitalisation of $265.99 million and over 213 million shares outstanding.
