RHY reports $4.1 million loss for half-year ended 31 December 2023

Rhythm Biosciences Limited (ASX: $RHY) reported a loss of $4,091,415 for the half-year ended 31 December 2023. The company, focused on developing and commercialising Australian medical diagnostics technology, is working on its ColoSTAT® product, aiming to provide an accurate and early detection test for colorectal cancer.

Executive commentary on strategic decisions and financial performance

The company's strategic review led to key decisions including the appointment of a qualified CEO, reclassification of ColoSTAT® kits for research use only, and engagement of a U.S. based Contract Manufacturing Organisation to meet new regulatory standards. The company also undertook a non-renounceable rights issue to raise up to $6.6 million and secured underwriting commitment for any shortfall. Despite the loss, the company is focused on cost reduction and realignment of operations to meet new regulatory standards.

Outlook and future plans

Rhythm Biosciences Limited is focused on completing the IVDR transition works for its ColoSTAT® product and expanding its platform to include breast and lung cancer diagnostics. The company aims to establish a UK subsidiary and continue its commercialisation efforts. With a cash position of approximately $1.22 million, the company is optimistic about its future prospects and is working towards appointing a qualified CEO, progressing with ISO audit, and receiving the 2nd tranche of Research & Development Tax Incentive. The company's ability to continue as a going concern is dependent on factors including the receipt of further research and development tax refunds and potential capital raising from investors.