ASX Health Stocks: Rhythm Bio surprises with major announcement on ColoSTAT
Health & Biotech
Health & Biotech
In a major development today, Rhythm Biosciences (ASX:RHY) was up 15% after announcing that its blood test product ColoSTAT exhibited very high accuracy for the detection of colorectal cancer.
The outcome of its clinical trial (Study 7) showed statistically significant performance, recording 81% Sensitivity, and a Specificity of 91%.
In addition, ColoSTAT was shown to be 35% more accurate than the market standard Faecal Immunochemical Test (FIT) for detecting cancer and advanced adenomas.
“These results further supports our conviction that ColoSTAT has the potential to transform the way colorectal cancer is detected, on a global scale,” said Rhythm CEO, Glenn Gilbert.
ColoSTAT is a low-cost, simple blood test to early detect colorectal cancer, which the company is aiming for mass-market screening.
Colorectal cancer is the third biggest cause of cancer-related deaths globally, with more than 935,000 people dying from the disease worldwide annually.
Rhytym says its TGA submission remains on track for first half of this calendar year.
Medtech company MedAdvisor (ASX:MDR) jumped 13% after providing an update on its final earn-out payment to Syneos Health for the acquisition of Adheris.
As part of MDR’s Adheris acquisition in November 2020, MedAdvisor agreed to two separate earn-out payments, should revenue increase to certain agreed levels.
If achieved, these were payable in May 2021 and May 2022, with MedAdvisor already paying out the first payment in full in May 2021.
MedAdvisor now says that Adheris revenues have exceeded agreed targets for the 12 months to 31 December 2021, which means MedAdvisor will need to pay Syneos the earn-out due in May.
That also brings the total purchase price for Adheris to US$34.5m.
Syneos has agreed to defer the second earn-out payment date to 15 September, allowing MedAdvisor to continue to focus on optimising its balance sheet to support the company’s growth initiatives.