Rhythm Biosciences (ASX: RHY) Expands Cancer Diagnostics Portfolio: Time to Buy?

Rhythm Biosciences (ASX: RHY) has launched an enhanced version of its geneType Colorectal Cancer (CRC) Risk Assessment test, marking another step in its push to build an integrated cancer detection platform. The updated test uses a 140-SNP polygenic risk score combined with lifestyle and clinical factors to identify individuals at elevated risk of bowel cancer.

This comes just weeks after the company began commercialising its flagship ColoSTAT blood test in December 2025. For investors watching the ASX healthcare space, the question is straightforward: is this small-cap stock entering a genuine revenue phase, or is it still too early to buy?

Rhythm Builds an Integrated Cancer Detection Platform

The cancer diagnostics market faces a stubborn problem. In Australia, compliance with recommended bowel cancer screening programs remains below 50%, according to Rhythm's latest company announcement. Many people simply avoid the traditional stool-based tests for cultural, personal, or practical reasons.

Rhythm's strategy addresses this gap with two complementary products. ColoSTAT is a blood-based test that detects five protein biomarkers indicating the presence of colorectal cancer. It offers a less invasive alternative for patients who resist conventional screening methods. The company initiated commercialisation through its NATA-accredited Melbourne laboratory following updated ISO15189:2022 certification last month.

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GeneType, acquired from the administration of Genetic Technologies in December 2024 for just $625,000, takes a different approach. Rather than detecting existing cancer, it predicts who might develop it by analysing genetic markers alongside clinical data. The enhanced CRC test now incorporates additional lifestyle risk factors, delivering improved predictive accuracy across both genders and a wider age range. Validation data were recently published in the peer-reviewed journal PLOS ONE.

Together, these products create an end-to-end screening pathway. GeneType identifies high-risk individuals early, while ColoSTAT detects disease once it has formed.

International Interest Builds

Beyond Australia, Rhythm has been busy securing international partnerships. In December 2025, the company announced an NHS England evaluation of ColoSTAT, opening a potential pathway into the UK healthcare system. The same month, Rhythm entered a US marketing partnership with Catch Bio to expand geneType distribution across America.

These deals matter because they reduce execution risk. The Catch Bio agreement means Rhythm does not need to build American distribution from scratch. The geneType acquisition already came with US infrastructure and an experienced team in place.

The company expects a variation to the scope assessment with the National Association of Testing Authorities (NATA) this month. If successful, ColoSTAT would become a fully accredited laboratory service, potentially boosting clinician confidence and commercial uptake.

The Investor's Takeaway for RHY

Rhythm sits at an interesting inflection point. After years of development, the company has moved into commercialisation with two complementary products targeting a genuine market gap. The geneType acquisition added immediate revenue potential and US market access at minimal cost.

However, this remains a speculative proposition. With a market capitalisation around $44 million and a share price of $0.14, RHY trades as a small-cap with the volatility that implies. Key risks include ongoing cash burn while revenues ramp up, uncertain adoption rates among clinicians and patients, and competition from larger diagnostic players.

Near-term catalysts to watch include the NATA accreditation outcome this month, early commercial uptake data for ColoSTAT, and progress on the NHS evaluation. For investors comfortable with healthcare speculation, these milestones could provide clearer signals on whether Rhythm's platform gains real-world traction.

Key Points:

• Enhanced geneType CRC test launched with improved risk prediction across genders and age groups
• ColoSTAT commercialisation began in December 2025, following ISO15189:2022 accreditation
• GeneType acquired for $625,000, adding US infrastructure and revenue potential
• NHS England evaluation and US partnership with Catch Bio were announced in December 2025
• NATA variation assessment expected in January 2026
• Market cap ~$44 million at $0.14 per share

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For investors seeking deeper research on emerging ASX healthcare opportunities, ASR's free Top-3 Stocks & Market Outlook Report provides analysis of companies navigating similar commercialisation phases. Those interested in tracking momentum indicators across the healthcare sector can explore ASR's HALO platform for real-time screening tools.

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