The Rhythm Biosciences Ltd (ASX: RHY) share price slid at market open today despite announcing a positive update in regards to its accreditation. In early morning trade, the medical device company's shares are swapping hands for $1.09, down 0.9%. However, at the time of writing, the Rhythm share price has recovered slightly, trading at $1.14, up 3.18%.
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What did Rhythm update the ASX with?
Investors appeared unfazed by the company's latest update, sending the Rhythm share price lower within the first hour of trade.
According to this morning's release, Rhythm advised that it has continued to retain its ISO13485 certification. The internationally recognised accreditation is seen as crucial to obtain regulatory approvals and gain market entry.
Furthermore, ISO13485 is seen as the quality standard for in-vitro diagnostics and medical devices. It ensures the consistent design, development, production, installation, and sale of medical devices that are safe for use.
The British Standards Institution (BSI) also conducted an annual audit of Rhythm's ISO13485 certification, which marks the third year of accreditation.
What did the CEO say?
Rhythm CEO Glenn Gilbert touched on retaining the ISO13485 certification, saying:
Having achieved and maintained ISO certification for a number of years now is a fantastic validation for the rigour and consistency the Company has established as part of our development program for ColoSTAT.
This is also a crucial part of our market entry strategy that ensures we have robust systems and processes in place that underpin our disruptive and transformative lifesaving cancer detection technology.
About the Rhythm share price
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.
The Rhythm share price has rocketed to more than 2,300% in the past 12 months, reflecting positive investor sentiment. Additionally, the company's shares reached an all-time high of $1.675 at the start of this month, before treading lower.
On valuation grounds, Rhythm commands a market capitalisation of roughly $221 million, with 201.5 million shares on issue.
