ASX Health Stocks: Rhythm Bio says study shows new research in lung cancer tech warranted

Rhythm Biosciences says results from a study of its potentially lifesaving lung cancer detection tech make a strong case for moving the project forward.

Eddy Sunarto

2 min read

November 24, 2023 - 2:18PM

Stockhead

Rhythm Bio reckons its R&D is well worth investment. Picture: Getty Images

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Rhythm Biosciences (ASX:RHY) has provided an update on its cancer diagnostics technology platform in lung cancer.

Late last year, Rhythm said it, together with the Baker Institute, had identified a five-biomarker combination that exhibited an effective correlation with various stages of lung cancer.

This combination was identified from a preliminary assessment of 17 biomarkers, which was performed by the Baker Institute in a “research use only” feasibility immunoassay study.

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The study evaluated these 17 blood-based biomarkers from 70 lung cancer patients, and 71 healthy volunteers.

Out of the biomarkers, preliminary results identified an important five-biomarker combination that can distinguish between patients with lung cancer, and those that are healthy, with a more than 85 per cent sensitivity and better than 90 per cent specificity.

After taking time to consider the study’s findings, Rhythm has now told the market that the encouraging results warrant confirmation in a larger population, and justify the continuation and advancement of the project.

The company believes the results also support the case for investment in a new R&D program to develop, validate, clinically evaluate the performance of the biomarkers, and translate these results into a commercially scalable blood test to detect lung cancer early.

It is yet to say from whom the investment would come.

Lung cancer remains the leading cause of cancer-related deaths worldwide, primarily because most people only seek treatment when the stage is too advanced to offer any reasonable chance of cure.

The Australian Institute of Health and Welfare estimated that in 2022, 14,529 Australians were diagnosed with lung cancer, and more than 8606 died from the disease.

Overall, the five-year survival rate for lung cancer is low, at about 22 per cent, and there is a clear need to improve the diagnostic tools for screening in detecting early-stage lung cancer.

RHY’s share price fell on Friday, to be more than 5.5 per cent down for the week at 2.30pm (AEDT).

Snagging EU approval is getting harder: SDI

Dental device company SDI (ASX:SDI), fell more than 4 per cent on Friday, following management’s presentation at the company’s AGM.

Chairman Jeffery Cheetham explained that in FY23, the company had made solid progress focusing on successfully growing its key product categories.

“We achieved record sales of $107.9 million, a fantastic result and I would like to take this opportunity to acknowledge and thank all SDI’s teams for their dedication,” said Cheetham.

Cheetham said he was confident that SDI would increase market share, post Covid.

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“The continued focus on aesthetic and whitening products is a solid strategy for the future direction of our portfolio.

“We continue to benefit from two of the main amalgam competitors leaving the category, with dentists switching to our brand,” he said.

Cheetham acknowledged, however, that the new European Union Medical Device Regulation (MDR) process had been a major focus for the SDI team over the past 12 months.

“Globally, product registration is becoming more difficult to achieve, adding a significant barrier to entry in our markets.”

Looking ahead to 2024, Cheetham said the company would focus on a few goals, including building a new warehouse and ensuring the European MDR registration was achieved.

“These are great goals for the year to ensure the company is well placed to achieve increased market share for the future,” he said.

This content first appeared on stockhead.com.au

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Originally published as ASX Health Stocks: Rhythm Bio says study shows new research in lung cancer tech warranted