Rhythm Biosciences Strengthens Balance Sheet and Expands ColoSTAT® Commercial Footprint

Financial Position Bolstered by Option Underwriting

Rhythm Biosciences (ASX:RHY) closed Q4 FY26 with a stronger balance sheet following the underwriting of approximately $5.2 million worth of RHYO options. This capital injection, after costs, supports the company’s ongoing commercial execution and extends its funding runway through to late 2027, beyond the period indicated in the Appendix 4C cash flow statement. The underwriting was completed by CPS Capital Group, finalising the March 2026 options exercise and providing Rhythm with a more robust working capital base to fuel its growth ambitions.

ColoSTAT® Commercial Rollout Gains Traction

Building on its first commercial sale in Q3 FY26, Rhythm continued to scale ColoSTAT®, its proprietary blood-based colorectal cancer detection test. Test volumes increased through a growing partnership with 4Cyte Pathology, which added new collection centres nationwide, enhancing patient access across Australia. The ColoSTAT® Access Program expanded to include sixteen nationally recognised clinicians, broadening the company’s key opinion leader network and generating valuable real-world evidence to support clinical adoption.

Importantly, ColoSTAT® is reaching diverse patient groups, including elderly, regional, and mobility-limited individuals, facilitated by home and community blood collection services. This early adoption underscores the test’s accessibility and potential to become integrated into routine clinical practice.

Strategic Clinician Engagement and Market Development

Rhythm’s extensive Voice of Customer research with Australian general practitioners informed a targeted national marketing campaign via AusDoc, reaching over 20,000 GPs. The company also delivered clinician education webinars, participated in primary care conferences, and leveraged peer-to-peer advocacy, all designed to accelerate clinician awareness and demand for ColoSTAT® testing.

International Validation and GeneType™ Expansion

The independent analytical evaluation of ColoSTAT® at the Southern Hub Laboratory of the Royal Surrey NHS Foundation Trust in Guildford, England, progressed steadily during the quarter. This evaluation is a cornerstone of Rhythm’s international validation strategy, supporting future reimbursement and market access opportunities beyond Australia.

Meanwhile, commercial momentum for geneType™, Rhythm’s precision risk assessment platform, continued to build. Existing partnerships in the United States, such as with KYL and CancerIQ, reported increased patient testing activity. Discussions with additional international and domestic partners advanced, expanding the pipeline for future market development. Notably, Rhythm plans to develop a US reimbursement strategy for geneType™ in FY27, aiming to unlock growth in a key healthcare market.

Operational Efficiency and Cost Discipline

To extend its cash runway and improve capital efficiency, Rhythm implemented targeted operational initiatives including executive leadership restructuring, laboratory director changes, and optimisation of research and development staffing. These measures are expected to materially reduce monthly cash operating expenditure while preserving the company’s capacity to execute its commercial and development strategy.

Outlook and FY27 Priorities

Entering FY27, Rhythm is focused on converting its commercial foundations into sustained growth. Key priorities include expanding the ColoSTAT® Access Program and 4Cyte collection network, increasing clinician and patient awareness, completing health economic analyses for ColoSTAT®, progressing independent evaluations, and advancing geneType™ partnerships and reimbursement pathways. The company also aims to capitalise on strategic opportunities generated at the BIO International Convention 2026 in San Diego, where it engaged multiple global diagnostics and healthcare organisations.

Rhythm’s dual-platform approach; combining early cancer detection with personalised risk assessment; positions it to capture multiple revenue streams across the precision diagnostics landscape. While the company has made tangible progress, the timing and success of international reimbursement and partnership initiatives remain to be seen, leaving the path to widespread adoption and commercial scale open to market and regulatory dynamics.