The Rhythm (ASX:RHY) share price is surging 5% higher today. Here’s why.

The Rhythm Biosciences Ltd (ASX: RHY) share price has climbed 5% higher today following United States approval of a patent for ColoSTAT.
The post The Rhythm (ASX:RHY) share price is surging 5% higher today. Here’s why. appeared first on The Motley Fool Australia. –

surging asx share price represented by piggy bank with rocket attached to it

The Rhythm Biosciences Ltd (ASX: RHY) share price is climbing today after the company was granted a United States patent for ColoSTAT. At the time of writing, the Rhythm share price is up 5% to 84 cents.

Rhythm develops and commercialises Australian medical diagnostics technology for sale in domestic and international markets. The company’s ColoSTAT is the first proposed product-in-development, intended to accurately test and detect the early stages of colorectal cancer.

New patent approval

In today’s release, Rhythm advised the US Patents and Trademarks Office (USPTO) has approved a patent for ColoSTAT biomarkers. The new grant covers 3 core biomarkers that form part of the ColoSTAT blood test. Additional biomarkers can be added to the core markers, if required.

In highlighting the positive announcement, the company noted that USPTO approved less than 35% of diagnostics patent applications.

Addressable market

Rhythm believes the authorised patent will strengthen its growth profile in the US. The current screening for people aged 50 to 74 years old is estimated to be around 94 million. And it could grow by a further 21% following the US Preventative Services Task Force’s recommendation to reduce the screening age to 45 years of age.

Nonetheless, this puts the company’s world-wide access close to 800 million people, when including other approved markets such as Australia, China, Japan, the United Kingdom and Europe.

CEO commentary

Rhythm CEO Glenn Gilbert welcomed the patent approval, saying:

The granting of this US patent further strengthens Rhythm’s global position as an emerging leader in the diagnosis of cancer, initially in the area of colorectal cancer.

The significance of this patent cannot be overstated, as it expands our access to a growing global market, and importantly, with ColoSTAT being a simple, low-cost option, means that we are in a position to access the mass market opportunity in each key country.

Having patent coverage in all the major global markets is a significant value-add for the Company.

Rhythm share price performance

The Rhythm share price has soared more than 500% higher in the past 12 months, reflecting the company’s aggressive expansion into new geographical markets.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras 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.

The post The Rhythm (ASX:RHY) share price is surging 5% higher today. Here’s why. appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!