The Rhythm Biosciences Ltd (ASX: RHY) share price is surging on Thursday afternoon trade. This comes after the company announced two positive updates regarding its ColoSTAT product and a share placement.
At the time of writing, the medical device company's shares are trading for $1.65, up 10.74%.
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What's driving the Rhythm share price higher?
Investors are fighting to get a hold of Rhythm shares after digesting the company's latest releases.
In its first statement, Rhythm advised that it has expanded the CE Mark registration to the United Kingdom for ColoSTAT.
An experimental test-kit, ColoSTAT is being trialled as a low-cost, easy-to-use blood test to detect colorectal cancer.
The regulatory milestone allows the company to market and sell ColoSTAT within England, Wales, Scotland and Northern Ireland.
Rhythm noted that Europe and the United Kingdom represent a significant addressable screening population for ColoSTAT of over 231 million people. This has a potential combined value of around US$12 billion.
In addition to the announcement, the company revealed it undertook a private share placement to a global institutional funds manager.
Approximately $6.53 million was raised through the issuance of 4.67 million Rhythm shares at a price of $1.40 apiece.
The proceeds of the placement are expected to be allocated towards progressing Rhythm's global commercial market entry activities for ColoSTAT.
Furthermore, the company will seek to develop additional cancer diagnostic targets.
Management highlighted that the funds will provide enough cash runway until late 2023, not including any commercial revenues achieved.
Rhythm share price snapshot
The Rhythm share price has accelerated by 29% in the past 12 months, reflecting positive investor sentiment. The company's shares reached an all-time high of $2.08 in November, before treading lower.
At today's prices, Rhythm presides a market capitalisation of roughly $344.76 million, with approximately 208.95 million shares on issue.
