Brisbane, Australia – December 22, 2024: Rhythm Biosciences Ltd (ASX: RHY), a transformative cancer diagnostics technology company, has entered into an Asset Sale Agreement (ASA) with Genetic Technologies Ltd (GTG) (Administrators Appointed) to acquire select assets of Genetype, GTG’s genetic risk assessment business.
Key Highlights:
- Strategic Acquisition: The acquisition diversifies Rhythm’s oncology business, enhancing its potential for early cancer detection and better disease outcomes.
- Immediate Revenue Stream: Genetype’s commercially available products provide Rhythm with an immediate revenue stream.
- Synergistic Product Portfolio: The integration of Genetype’s genetic-integrated risk assessment with Rhythm’s blood-based clinical diagnostics creates a powerful synergy for early detection of cancer.
- Transaction Completion: The transaction is expected to complete on December 23, 2024, with integration into Rhythm’s business to follow immediately.
Transaction Details:
- Cash Purchase Price: Rhythm has agreed to a cash purchase price of $0.625 million, which includes payment to select trade creditors and the assumption of statutory employee entitlements for employees transferring from Genetype in Australia.
- Funding: The acquisition is funded through Rhythm’s existing cash reserves, including previous Research and Development Tax Incentive payments.
- Completion Timeline: The transaction is set to complete on December 23, 2024, with business integration expected to begin within 12 weeks.
Strategic Rationale:
- Business Synergies: Genetype’s polygenic risk scores and clinical factors support Rhythm’s mission of early disease detection. The combination of proteomic and genomic product platforms creates a robust solution for personalized healthcare.
- Revenue Opportunity: The multi-disease product line of Genetype offers Rhythm an immediate commercial revenue opportunity and accelerates the development of its ColoSTAT® product.
- Diversification: The acquisition adds a mature, commercial product platform, diversifying Rhythm’s capabilities and expanding its reach in both Australia and the USA.
- Scale Benefits: The merger expands geographical footprint and optimizes resources, enabling rapid scaling of both proteomic and genomic technologies.
Integration Plans:
- Rhythm will ensure a smooth integration of the Genetype business, supported by an agreed Transitional Support Services period with GTG Administrators.
- Funds from Rhythm’s R&D Tax Incentive refund will be allocated to ensure Genetype’s platform delivers its full commercial potential.
CEO Comments:
Dr. David Atkins, CEO of Rhythm, emphasized that the acquisition aligns with the company’s strategy to create a comprehensive approach to cancer risk understanding and early diagnosis, enabling earlier treatment and better patient outcomes. He expressed excitement about welcoming the Genetype team and accelerating the combined business’s development.
Dr. Erika Spaeth, Genetype’s Director of Clinical & Scientific Affairs, also expressed enthusiasm about the acquisition, stating that she looks forward to seeing Genetype realize its potential and positively impact global health.
With this acquisition, Rhythm further strengthens its commitment to advancing predictive cancer diagnostics and improving patient outcomes through innovative, early detection technologies.
