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. –
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.
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.
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.
*Returns as of June 30th
- Why the Rhythm Biosciences (ASX:RHY) share price rocketed 28% to a record high
- These small cap ASX shares delivered more than 100% returns in November
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.