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%.
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.
The post Here’s why the Rhythm (ASX:RHY) share price is up 11% today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Rhythm right now?
Before you consider Rhythm, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rhythm wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
Motley Fool contributor Aaron Teboneras 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.
from The Motley Fool Australia https://ift.tt/3fba1Yp
Leave a Reply