Rhythm’s $1M RDTI Loan Raises Stakes in Cancer Test Commercialisation

Strategic Funding Boost

Rhythm Biosciences Ltd (ASX, RHY), an Australian medical diagnostics innovator, announced it has secured a $1 million loan from Endpoints Capital. This non-dilutive funding is secured against the company’s anticipated FY2025 Research and Development Tax Incentive (RDTI) rebate, with repayment expected later this year. The loan carries commercial interest rates typical for such facilities, providing Rhythm with immediate capital without diluting shareholder equity.

Accelerating Commercialisation

The injection of funds is earmarked primarily for the commercial launch of the updated multiplex assay version of ColoSTAT®, Rhythm’s blood-based colorectal cancer detection test. ColoSTAT® leverages protein biomarkers to identify colorectal cancer risk early, a critical factor given colorectal cancer’s status as the second leading cause of cancer deaths globally. The company also plans to expand commercial sales and distribution activities for geneType™, its sophisticated genetic risk assessment platform that integrates clinical and family history with polygenic risk scores across multiple diseases.

Confidence in RDTI Program

Dr. David Atkins, CEO and Managing Director, highlighted that Endpoints Capital’s approval followed thorough due diligence on Rhythm’s RDTI program, underscoring confidence in the company’s research pipeline and financial outlook. This funding not only bolsters Rhythm’s balance sheet but also accelerates momentum as the company targets key milestones for both ColoSTAT® and geneType™.

Broader Implications

Rhythm’s approach aligns with a growing global emphasis on early cancer detection and precision medicine. By combining proteomic and genomic diagnostics, the company aims to reduce cancer mortality and healthcare costs. The RDTI-backed loan mechanism exemplifies how innovative funding solutions can support biotech firms in bridging the gap between research and commercialisation.

Looking Ahead

As Rhythm Biosciences moves forward, investors will be watching closely for updates on ColoSTAT®’s market uptake and geneType™’s expansion into new disease risk assessments. The company’s ability to convert R&D advances into commercial success will be pivotal in defining its growth trajectory.