2026 has been the year of commercialisation for Rhythm Biosciences (ASX:RHY). It has been the year that ColoSTAT has finally hit the market and while GeneType was already commercialised, it has similarly seen a pickup in momentum.

ColoSTAT: Rolling out in the market and its proving to be a hit

ColoSTAT was commercialised as a NATA-accredited laboratory service and has reached real patients through a formal partnership with 4Cyte Pathology, one of Australia’s largest independent pathology providers, while 16 clinicians have enrolled in the ColoSTAT Access Program. Early case studies already demonstrate that the test can be seamlessly integrated into both in-home and community-centre pathology settings. Genetype too is also accelerating through a rapidly expanding partnership pipeline including the Memorial Sloan Kettering Cancer Center relationship, yet the market is ascribing little to no value to it.

What the rest of 2026 holds

Investors should look closely to Rhythm’s quarterly revenues which will give an indication that the roll out is progressing. Beyond this, investors should look for further commercial partnerships including distribution partnerships with pathology companies similar to 4Cyte as well as studies of ColoSTAT and Genetype, especially the outcome of the The Southern Hub Research Team, Royal Surrey NHS Foundation Trust (Guildford). ColoSTAT evaluation. The company’s balance sheet strengthening from the exercise of options (worth $5.2m)

We see upside to $0.42-0.66 per share

We value Rhythm at A$0.42 per share in a base case and A$0.66 per share in an optimistic scenario, representing upside of approximately 419% and 715% respectively from the last traded price at the time of writing. This is using a DCF methodology and was previously $0.45-0.69 per share – adjusted due to the increased number of shares on issue. Our market capitalisation valuation has not changed. FY27 is shaping up as a year of genuine inflection and, given that revenue momentum is now building across both products, we believe the stock warrants close attention from investors. Please see page 11 for key investment risks.