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Rhythm Biosciences (ASX:RHY) establishes US subsidiary to drive expansion strategy

Health Care
ASX:RHY      MCAP $20.17M
15 July 2021 12:30 (AEST)
Rhythm Biosciences (ASX:RHY) - Chairman Otto Buttula

Source: Rhythm Biosciences

Rhythm Biosciences (RHY) has established an American entity to drive its expansion strategy into the US.  

IchorDX Inc, a wholly owned subsidiary, has been established as part of Rhythm’s US market entry plan to launch ColoSTAT’s expansion into one of its largest priority markets.

ColoSTAT is a simple, affordable, minimally invasive blood test for the early detection of bowel cancer. Rhythm says its lead product has the potential reduce mortality rates and healthcare costs associated with colorectal cancer.

The IchorDX board will be made up of Rhythm’s current Non-Executive Chairman, Otto Battula in the role of President, and CEO Glenn Gilbert in the role of Vice President and Secretary.

“The establishment of IchorDX Inc. in the US demonstrates our commitment to accelerate our international expansion plans, offer additional optionality to our corporate structure and aim to create a global footprint for Rhythm’s transformative cancer detection technology,” Glenn Gilbert said.

“The reality is that the global need for a simple and accurate mass screening blood test for colorectal cancer is growing,” he continued.

“This first step to enter the US market moves Rhythm closer to meeting this need.”

Meanwhile, Rhythm’s Non-Executive Director, David White, has resigned from his position at Rhythm and agreed to take up the role of Non-Executive Director of IchorDX.

Rhythm says the US represents one of the largest diagnostic markets in the world, with a current addressable market of over 94 million people — a scope that could grow by a further 21 per cent following the US Preventative Services Task Force’s recommendation for the colorectal cancer screening age to be reduced from 50 to 45 years.

The company says this decision was further driven by seeing sensitivity and specificity results improved through ongoing studies.

Rhythm Biosciences was up 5.29 per cent, trading at 89.5 cents at 12:30 pm AEST.

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