Rhythm Biosciences Limited (ASX: RHY) is an Australian bioscience company specialising in early cancer detection and risk assessment through its innovative diagnostic tool. Two signature tools, ColoSTAT and geneType, are the flagship products, offering patients alternatives in the market to choose from. Rhythm Biosciences Limited was listed on ASX on 7 December 2017 at an issue price of AUD 0.27 per share.
Financial Performance and Funding
Rhythm Bioscience holds AUD 4.37 million in cash as of 31 December 2024, aided by a successful AUD 3.5 million capital raise. Furthermore, the company received AUD 3.2 million from the Australian Government’s R&D Tax Incentive, underscoring its ongoing commitment to innovation.
Despite recent share price volatility, the company maintains a modest market capitalisation of AUD 22.7 million. With approximately 284 million shares on issue, Rhythm Bioscience’s valuation could experience upside as ColoSTAT and geneType achieve commercial traction.
Growth Pipeline and Opportunities
Key milestones in the pipeline include the completion of ColoSTAT validation, partner onboarding, the relaunch of geneType sales, and the expansion of the company’s product portfolio across genomics and proteomics.
The geneType platform offers a compelling value proposition. The Multi-Risk Test (MRT) and Hereditary Breast and Ovarian Cancer (HBOC) test, currently available in the US, leverage genetic and clinical data to generate highly personalised risk assessments. Notably, 79.5% of MRT users received previously unknown health risk insights, demonstrating the technology’s ability to provide novel, actionable information.
The company is targeting both direct sales and strategic partnerships, implementing distribution plans that cover key regions, including Australia and the US. The combined diagnostic suite allows Rhythm to address various stages in the patient care continuum, facilitating earlier intervention, more effective treatment planning, and a more efficient use of healthcare resources.
Strategic Development
Rhythm Biosciences has made significant progress in advancing its cancer diagnostics platform, centred around its flagship blood-based screening test, ColoSTAT. The second-generation version of the test kit has undergone analytical improvements, streamlining the workflow from five separate plates to a single multiplex plate. This update significantly minimises human error, enhances automation potential, and reduces testing time and logistical costs.
Rhythm Bioscience plans to complete the analytical and algorithm validation studies in the first half of CY2025. Commercialisation is on track for the second half of the calendar year, with plans to launch the product through commercial partners under the ‘In-House IVD’ pathway. The updated kit is expected to enhance market uptake by providing a cost-effective, scalable, and non-invasive alternative to traditional screening options.
Another key strategic initiative was the acquisition and integration of the GeneType business, which expanded the company’s diagnostic capabilities beyond colorectal cancer. The GeneType suite includes a diverse portfolio of predictive tests for breast, prostate, ovarian, melanoma, and pancreatic cancers, along with chronic disease risk profiling.
Industry Context
Globally, the cancer diagnostics market is experiencing rapid transformation, driven by the demand for early detection, non-invasive testing, and personalised care. Rhythm is strategically positioned to capitalise on these trends, thanks to its diverse pipeline and patented technology.
Notably, the company is addressing significant unmet needs in global health, particularly in the area of bowel cancer screening. By providing accurate and accessible diagnostics such as ColoSTAT and geneType, Rhythm is helping to bridge gaps in care, especially among populations that are currently under-screened or hesitant to undergo traditional invasive tests.
The company’s innovative diagnostic solutions, expanding commercial focus, and alignment with healthcare market trends present a promising opportunity for those seeking to invest in the future of healthcare technology.