Latest news with #RhythmBiosciences
Yahoo
06-08-2025
- Business
- Yahoo
We're Not Very Worried About Rhythm Biosciences' (ASX:RHY) Cash Burn Rate
Explore Rhythm Biosciences's Fair Values from the Community and select yours Just because a business does not make any money, does not mean that the stock will go down. Indeed, Rhythm Biosciences (ASX:RHY) stock is up 181% in the last year, providing strong gains for shareholders. But while history lauds those rare successes, those that fail are often forgotten; who remembers Given its strong share price performance, we think it's worthwhile for Rhythm Biosciences shareholders to consider whether its cash burn is concerning. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Does Rhythm Biosciences Have A Long Cash Runway? A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. As at December 2024, Rhythm Biosciences had cash of AU$4.5m and no debt. In the last year, its cash burn was AU$2.1m. That means it had a cash runway of about 2.1 years as of December 2024. That's decent, giving the company a couple years to develop its business. You can see how its cash balance has changed over time in the image below. Check out our latest analysis for Rhythm Biosciences How Is Rhythm Biosciences' Cash Burn Changing Over Time? In the last year, Rhythm Biosciences did book revenue of AU$3.2m, but its revenue from operations was less, at just AU$1.5m. Given how low that operating leverage is, we think it's too early to put much weight on the revenue growth, so we'll focus on how the cash burn is changing, instead. Notably, its cash burn was actually down by 75% in the last year, which is a real positive in terms of resilience, but uninspiring when it comes to investment for growth. Admittedly, we're a bit cautious of Rhythm Biosciences due to its lack of significant operating revenues. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth. How Hard Would It Be For Rhythm Biosciences To Raise More Cash For Growth? While we're comforted by the recent reduction evident from our analysis of Rhythm Biosciences' cash burn, it is still worth considering how easily the company could raise more funds, if it wanted to accelerate spending to drive growth. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Rhythm Biosciences' cash burn of AU$2.1m is about 2.8% of its AU$77m market capitalisation. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares. How Risky Is Rhythm Biosciences' Cash Burn Situation? It may already be apparent to you that we're relatively comfortable with the way Rhythm Biosciences is burning through its cash. For example, we think its cash burn reduction suggests that the company is on a good path. And even its cash runway was very encouraging. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash. Separately, we looked at different risks affecting the company and spotted 6 warning signs for Rhythm Biosciences (of which 2 are a bit concerning!) you should know about. Of course Rhythm Biosciences may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Australian
04-08-2025
- Health
- The Australian
Breakthrough for Rhythm's next-gen bowel test
ColoSTAT diagnostic performance consistent across colorectal cancer I to IV stages Performance meets clinical requirements for symptomatic patient testing use case Commercialisation steps underway as ColoSTAT kit transitioned to final production validation state Special Report: Rhythm Biosciences has announced that its second-generation ColoSTAT blood test detects colorectal cancer consistently across all stages of the disease, marking an important milestone as the company prepares for commercialisation later this year. Following completion of ColoSTAT Beta kit verification and validation announced in May, the Rhythm Biosciences (ASX:RHY) development team has received a batch of ColoSTAT kits produced by Quansys Biosciences using the final manufacturing process. As part of the validation process, blood samples from 300 patients, ranging from those without bowel cancer to those with stage I to IV of the disease, were tested to assess how well ColoSTAT works across all stages. While further studies will be completed, the results show the test is equally effective at detecting colorectal cancer at every stage, which is an important finding given its intended use for symptomatic patients who could have either early- or late-stage cancer tests often struggle to detect early-stage disease, so the fact that ColoSTAT performs well at this stage is seen as particularly important. The predictive cancer diagnostics technology company expects to finalise validation of the kits, algorithm, and instrumentation in the near term, ahead of a submission to the National Association of Testing Authorities (NATA) in Australia to include ColoSTAT in its ISO15189 laboratory test portfolio. NATA is Australia's primary accreditation body for laboratories and testing facilities. Commercial launch of ColoSTAT is planned for later in CY25, subject to NATA regulatory approval. Watch: CEO David Atkin's talks about early cancer detection. 'Establishing a clinically useful product' ColoSTAT is a simple, minimally invasive blood test designed for people unwilling or unable to undergo traditional screening methods for colorectal (bowel) cancer, the world's second leading cause of cancer deaths but highly treatable when detected early. The test identifies specific protein biomarkers in the blood that indicate the likelihood of colorectal cancer. The second-generation ColoSTAT blood test involved a redesign of the assay from a single-plex into a multiplex format with several objectives including: Simplify completion of the test for a routine laboratory Reduce turnaround times (TAT) Improve the quality and performance of the assay Reduce overall cost of goods for the assay Clinical advisor Dr Andy Feber said demonstrating performance across the full spectrum of neoplastic conditions was essential for a clinically useful product. 'Establishing ColoSTAT performance across the entire range of neoplastic conditions is an important requirement for a clinically useful product,' he said. 'I'm pleased to see this important milestone has been achieved.' This article was developed in collaboration with Rhythm Biosciences, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
News.com.au
17-06-2025
- Health
- News.com.au
Biocurious: Rhythm gets into the groove of predicting and preventing cancer
Rhythm Biosciences has expanded its original remit of bowel cancer to diagnosing other cancers early in the piece The company late last year acquired the Genetype platform from the administrators of Genetic Technologies Rhythm is developing its blood-based bowel cancer assay Colostat as a laboratory test Cancer diagnostics house Rhythm Biosciences (ASX:RHY) goes by the age-old seamstress lore that a stitch in time saves nine. In the case of common cancers, treating them later is much more expensive than if they are detected early. 'Without screening, cancers are diagnosed at late stage, by which time the cost of treatment is much greater,' says Rhythm CEO Dr David Atkins. In the case of bowel cancer, Australians aged between 50 and 75 are eligible for a free biennial test, delivered to their door. One problem is fewer than half of the 'poo tests' – more formally known as faecal occult tests (FOTs) – are returned. The program is costly to run. Another is that the disease increasingly is being detected in the under 50s, which account for 20% of all cases. The reasons are unclear. One hypothesis is exposure to a particular e-coli toxin in early childhood, possibly more prolific because of antibiotics use, caesarean births or probiotics. Others blame wheat-based diets. 'We have good screening programs, but the economics are such that we can't really go below 50 years old,'' Atkins says. Getting into the Rhythm Rhythm is working on a double-banger solution to early detection not just of bowel cancer – its original remit – but other tumours as well. The company has been developing Colostat, a minimally invasive blood-based test that detects certain protein biomarkers. The tech had its origins from within the hallowed halls of the CSIRO, more than two decades ago. 'Our goal is to provide a simple inexpensive lab-based test that will be equivalent to the stool-based test for the symptomatic patient,' Atkins says. Late last year Rhythm acquired a testing platform, Genetype, from the administrators of the failed listed Genetic Technologies. Genetype tests an individual's genetic propensity to get cancer. 'The two platforms work hand in hand,' Atkins says. 'Genetype is the earliest possible point at which you can detect disease, while Colostat is able to detect disease once it has actually formed.' For many people, FOT is not the right fit Many recipients are unwilling to carry out the FOT test for religious or cultural reasons – or simply squeamishness. Requiring two samples over two days, the test is somewhat cumbersome. But Atkins says Colostat is unlikely to replace FOTs for routine screening. 'Screening tests anywhere take a long time to be adopted and authorities would be reluctant to disturb the status quo'. Rather, Colostat is likely to be an 'adjunct or alternative to the current standard of care' for the symptomatic population. In other words, the test would be used by GPs on doctors on the small minority of patients that present with symptoms. 'Unfortunately, in Australia most of the circa 15,000 cases diagnosed annually results from patients going to their doctor with symptoms,' Atkins says. 'Doctors need a solution to determine whether they can send the individuals for a colonoscopy, or send them home.' The clinicians obtain a result within 24 hours, rather than a week or more for the FOT test. The flipside of effective detection is avoiding overservicing. If the patient goes home safely, that's a big plus for the health system. Atkins notes that Australian clinics carry out one million colonoscopies annually. Given the detection figure of 15,000 patients, many are unnecessary and 'result in unnecessary cost and stress.' Clinical tests have shown that Colostat is more effective at detecting cancer than a FOT test, which detects blood in the stools. But this could also be a sign of polyps, ulcers, or hemorrhoids. That said, Rhythm is happy with mere equivalency. After all, the Colostat test always will be more effective than an unused poo test. Pursuing the lab-based route On March 6, 2023, Rhythm shares tumbled 45% after the company withdrew its 1300-page marketing application to the local Therapeutic Goods Administration (TGA). The company felt it was unable to provide the information the agency requested within the requisite 20 business days. Initially, Rhythm planned to resubmit to the TGA, but now plans to commercialise Colostat via the laboratory-developed test route. 'Lab based' refers to the common path of shipping the test to an appropriately certified lab, which acts as the quality gatekeeper. Certification means National Association of Testing Authorities accreditation. The lab-based route obviates the need for TGA approval for general dispersal. 'Most new diagnostics go down the lab path,' Atkins says. 'It's rare for a new diagnostics company to put an assay in a box and try to get TGA approval, which is an expensive and difficult path.' In the case of Colostat, one or two labs nationally could handle the processing, so the lab route is not that arduous. 'We're not going to need hundreds of labs running our assays in future, but we will need more than one.' Atkins, who joined Rhythm a year ago says: 'We have focused on taking the work the previous team has done and leveraging that so we can get a high-quality product to market.' This work includes reformulating the protein biomarkers that Colostat detects, using a single simplified assay. 'We are finalising the verification validation for the assay to ensure it does what it says on the label.' Predicting cancer risk The Genetype tests are a mix of genomic data and clinical and demographic history. 'The selling point for Genetype is that it gives insights into individuals' risk profiles that they otherwise wouldn't get,' Atkins says. The Genetype acquisition transforms Rhythm from development stage to a revenue-generating business, Rhythm paid $625,000 for Genetype – less these days than a house in Darwin or Hobart. Atkins says Genetic Technologies spent 'comfortably more' than that on developing Genetype over more than a decade. In the year to June 2024 Genetic Technologies derived $134,085 of revenue from Genetype, 200% higher than the previous year. Atkins says Rhythm primarily has acquired the know-how behind Genetype – seven key staff members stayed on – as well as a watertight patent portfolio and US and local lab licences. Rhythm also obtains the medical history of several thousand patients which it ultimately could use for R&D. "This is incredibly valuable," Atkins says. Won't make the same mistake Atkins says Genetic Technologies tried to sell Genetype directly to consumers. In reality, physicians need to request the test. 'We are focused on partners who either are GP networks or have GPs within their system. For example, employee management groups, insurers, clinical networks and laboratories.' Health insurers could carry out the test routinely, as part of health checks. Atkins says there's a sizeable market of consumers willing to pay out of pocket for the test, ranging from 'worried well' those already deemed high risk. Nonetheless, the company is exploring reimbursement. Atkins says while the US is the obvious market, Europe and China are also challenging but appealing. 'We are not ignoring Australia – the tenth biggest global health wellness market based on out-of-pocket payments,' he says. 'GPs tell us there is a real appetite for individuals to invest in their own health.' Meanwhile, Rhythm expects Colostat revenue to flow from 2026. Following that, the company hopes to expand the assay to six other tumours, including lung cancer. 'The next 12 to 18 months for Rhythm should be truly transformational,' Atkins says.
The Australian
12-06-2025
- Business
- The Australian
Study backs Rhythm's colorectal risk model
Rhythm publishes peer-reviewed study validating its next-generation colorectal cancer risk assessment model Proprietary geneType assessment enhanced and cross-validated using data from nearly 400,000 individuals in UK Biobank Next generation geneType design continues focus on usability and simplicity, while providing superior performance Special Report: Rhythm Biosciences has published a peer-reviewed study in PLoS One validating its next-generation colorectal cancer risk assessment model, marking a major step forward in predictive cancer diagnostics. Rhythm Biosciences (ASX:RHY) said the study detailed updates and improvements to its proprietary geneType colorectal cancer risk assessment, which was enhanced and cross-validated using data from nearly 400,000 individuals in the UK Biobank. Rhythm said the article titled 'Colorectal cancer risk prediction using a simple multivariable model' described creation and validation of a new risk model that incorporated sex-specific factors and outperformed current models. The company said as colorectal cancer was a disease associated with many environmental and lifestyle risk factors, the study focused on expanding its geneType model beyond the two primary risk factors – family history and polygenic risk. Watch: Inside ColoSTAT's road to market Key findings of study Rhythm said the study delivered several key findings, most notably development of the enhanced risk model that incorporated three additional risk factors. These factors were selected for their strong associations with colorectal cancer and ease of use in a clinical setting, improving the model's predictive performance over standard family history assessments. The company said the most impactful risk factors were identified and integrated into an updated geneType risk model, which was then tested using data from the UK Biobank. Rhythm said other key findings included: Commitment to improvement – The study highlighted the importance of including clinical and lifestyle factors in multifactorial diseases like colorectal cancer. Commercial application – The new model was designed with commercial clinical applications in mind, minimising the number of risk factors while maximising predictive accuracy. Sex-specific factors – Incorporating sex-specific risk factors enhances model performance across diverse populations. Superior performance – A multivariable risk assessment is shown to be superior to standard of care of family history assessment in its ability to predict risk of developing colorectal cancer. 'Significantly improve stratified screening' Rhythm director of scientific affairs Dr Erika Spaeth said publishing the findings in PLoS One underscored its commitment to advancing cancer risk prediction. 'Our new multifactorial model outperforms previous methods based solely on polygenic risk and family history,' she said. 'By integrating clinical and lifestyle factors, we enhance our prediction accuracy for colorectal cancer. 'We're excited about these results and confident that this model will significantly improve stratified screening in the population." This article was developed in collaboration with Rhythm Biosciences, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Mercury
29-05-2025
- Business
- Mercury
Long Shortz: Rhythm Biosciences
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Tylah Tully chats with Rhythm Biosciences (ASX:RHY) CEO David Atkins about the company's mission to make cancer a more treatable condition through earlier detection—starting with bowel cancer. Rhythm is developing ColoSTAT, a groundbreaking blood-based diagnostic test designed to detect the likelihood of bowel cancer more easily and effectively than current stool-based methods. He discusses the recent redevelopment of the test, which led to significant improvements in ease of use, cost, speed, and clinical performance. Watch the video to hear more. This video was developed in collaboration with Rhythm Biosciences, a Stockhead client at the time of publishing. The interviews and discussions in this video are opinions only and not financial or investment advice. Viewers should obtain independent advice based on their own circumstances before making any financial decisions. Originally published as Long Shortz with Rhythm Biosciences: Inside ColoSTAT's road to market
