Is Rhythm Biosciences (ASX:RHY) a Buy After Securing NHS Expertise and US Distribution Deal?

Rhythm Biosciences (ASX: RHY) may finally be turning the corner. The company has secured NHS expertise to support its ColoSTAT bowel cancer blood test launch in the UK, while a separate deal with Catch Bio expands its geneType platform across the United States. For a stock trading at just A$25 to A$30 million market cap, these twin catalysts raise an important question: is this the moment to buy?

We believe the answer depends on your risk tolerance. The opportunity is real, but so is the execution history.

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ColoSTAT Moves Into NHS Evaluation in England

ColoSTAT is Rhythm’s flagship product, a simple blood test that detects bowel cancer using five protein biomarkers. The value proposition is straightforward: most people hate stool-based screening. Studies show 78 to 93 per cent of patients would prefer a blood test instead. This matters because screening participation is poor. In Australia, more than half of eligible adults skip screening entirely. The UK faces the same challenge, with roughly 24 million people in the target age range.

Rhythm now has real momentum in the UK. The company holds UKCA certification, meaning ColoSTAT is already cleared for the British market. More importantly, ColoSTAT is now moving into evaluation within England’s NHS system. In our view, this signals the company is finally transitioning from development to commercialisation.

Clinical data from October 2025 showed strong performance across patients aged 45 to 80. What caught our attention was the indication that ColoSTAT may also detect early-onset cancers in patients under 50, a growing concern that current programs miss.

Catch Bio Partnership Opens the US Market

The UK progress isn’t happening alone. Rhythm has also partnered with Catch Bio to market its geneType cancer risk platform in the United States.
geneType works differently from ColoSTAT. Rather than detecting existing cancer, it predicts who might develop cancer using genetic data.

Rhythm acquired this business in December 2024 for just A$625,000, a bargain for a platform that already generates revenue with US infrastructure in place.
We see this as evidence that management is executing on multiple fronts, not just waiting for ColoSTAT to carry the business.

The Investment Case: Opportunity Meets Risk

The positive view: Rhythm is valued at only A$25–30 million, yet it already has one product approved in the UK, an NHS evaluation in progress, and a US distribution deal for another product. If sales grow as expected, the share price could rise a lot.

The negative view: Rhythm has a history of setbacks. A TGA withdrawal in 2023 caused a 45% share price drop, and the chairman admitted to “past failures” at the 2025 AGM. The company also raised A$3.75 million in August, showing cash is still tight. Competitors like Guardant Health and GRAIL have far more funding.

Our Take

Rhythm Biosciences offers genuine upside for investors comfortable with speculation. The dual-market strategy is smart, the product addresses a real gap in cancer screening, and valuation looks undemanding if execution goes well.

But the company still needs to prove it can deliver. We lean cautiously optimistic, recognising that proof matters more than promises. Growth investors should consider adding to their watchlist. Conservative investors may want to wait for commercial sales before committing.