Why the Rhythm Biosciences (ASX:RHY) share price is jumping 8% today

This healthcare share is on form on Tuesday…

| More on:
Two women jumping into the air.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Rhythm Biosciences Ltd (ASX: RHY) share price is pushing higher on Tuesday.

In afternoon trade, the predictive diagnostics company's shares are up 8.5% to $1.14.

Why is the Rhythm Biosciences share price racing higher?

Investors have been bidding the Rhythm Biosciences share price higher today after the release of a positive update.

According to the release, the Therapeutic Goods Administration (TGA) has formally accepted Rhythm's manufacturers evidence documentation. This documentation is required for the approval of its ColoSTAT product in Australia and completes the first step for regulatory approval in the country.

ColoSTAT is aimed to be a globally marketed, low-cost, simple blood test for the early detection of colorectal cancer for mass-market screening.

What now?

With step one of the TGA submission process complete, the company will now push ahead with the filing of an Australian Register of Therapeutic Goods (ARTG) listing.

The ARTG listing will contain further comprehensive documentation. This includes the product technical files, clinical evaluation reports, and similar documentation.

Rhythm's CEO, Glenn Gilbert, commented: "Progress for regulatory approval in Australia has commenced and it is pleasing to have received the TGA's acceptance of our Manufacturers Evidence."

"Our expectation remains that patient recruitment for the clinical trial (Study 7) is to be completed in the near term. Again, the application for a CE Mark for European approval is independent of both the clinical trial being completed and TGA application. CE Mark filing remains on track for late this calendar year," he added.

Investors appear excited that this product could soon be generating revenue and saving lives. The company estimates that over 850,000 people die from colorectal cancer each year. It also notes that there is a market opportunity of more than $6.5 billion per year in the US, EU, and Australian markets.

The Rhythm Biosciences share price is up 24% over the last 30 days.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors saw another day of mild gains for the stock market this Thursday.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Champion Iron, Clarity Pharmaceuticals, St Barbara, and Woodside shares are charging higher today

These shares are having a good session today. But why are investors buying them?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant Tuesday session for ASX investors today.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Boss Energy, Neuren, Strickland, and Vulcan shares are pushing higher today

These shares are having a better day than most today. But why?

Read more »

Woman holding gold bar and cheering.
Gold

Up 200% in 2025, guess which ASX gold stock is surging 11% again today

Investors are sending the ASX gold stock soaring again today. But why?

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile start to the week for the ASX share market...

Read more »