Rhythm Biosciences reported a $2.26 million half-year loss as it advances ColoSTAT into commercialisation and expands geneType partnerships, signalling a pivotal phase for the ASX-listed medical diagnostics company.
- Half-year loss of $2.26 million, down from prior profit
- ColoSTAT transitions from development to commercial launch with ISO accreditation
- NHS England selects ColoSTAT for independent evaluation
- GeneType platform expands via strategic partnerships and scientific validation
- $3.75 million capital raising strengthens balance sheet
Financial Performance and Commercial Transition
Rhythm Biosciences Limited (ASX, RHY) has reported a net loss of $2.26 million for the half-year ending 31 December 2025, a significant reversal from the $589,000 profit recorded in the previous corresponding period. This downturn reflects the company’s continued investment in commercialising its flagship ColoSTAT colorectal cancer detection test and expanding its geneType genetic risk assessment platform.
Despite the loss, Rhythm’s financial position was bolstered by a successful $3.75 million capital raising and a $1.576 million research and development tax incentive, which together have strengthened the company’s balance sheet as it transitions from a development-stage entity to a commercial enterprise.
ColoSTAT, From Development to Market
The half-year marked a pivotal shift for ColoSTAT, with the product moving beyond development into active commercialisation. The company achieved ISO 15189, 2022 accreditation for its laboratory, a globally recognised standard that underpins the test’s clinical reliability. ColoSTAT is now available to assist in triaging over 800,000 Australians undergoing colonoscopies annually for symptoms, addressing a market where fewer than 5% of symptomatic patients are diagnosed with colorectal cancer.
Adding to this momentum, the National Health Service (NHS) in England has selected ColoSTAT for independent evaluation, an endorsement that opens the door to one of the world’s largest public healthcare markets. This external validation could prove critical in establishing ColoSTAT’s international footprint.
GeneType Platform Expansion and Scientific Validation
Alongside ColoSTAT, Rhythm’s geneType platform continued to gain traction. The company secured strategic distribution partnerships with a leading Australian pathology provider and the US-based Know Your Lemons Foundation, broadening its reach in both domestic and international markets.
Scientific collaborations also advanced, including a strategic agreement with Memorial Sloan Kettering Cancer Center to support cancer risk studies. Notably, the geneType ovarian cancer risk model was validated in Harvard Medical School’s Nurses’ Health Study, demonstrating the platform’s ability to identify twice as many at-risk women compared to traditional clinical models.
Governance and Outlook
Governance changes accompanied this commercial push, with Gavin Fox-Smith appointed as Chairman, bringing experience suited to the company’s evolving stage. The company acknowledged the contributions of outgoing Chair Otto Buttula, who retired during the period.
While the company faces material uncertainty regarding its going concern status due to ongoing operating losses and cash outflows, management remains confident in its ability to secure additional funding and scale back activities if necessary. The company’s strategic progress and strengthened financial position set the stage for further developments in the coming months.
Bottom Line?
Rhythm Biosciences’ commercial strides with ColoSTAT and geneType set a foundation, but investors will watch closely as the company navigates financial headwinds.
Questions in the middle?
- How will NHS evaluation impact ColoSTAT’s international sales trajectory?
- What are the timelines and expected revenue contributions from geneType’s expanded partnerships?
- Can Rhythm secure further capital or achieve profitability to alleviate going concern risks?