Rhythm Biosciences Limited · ASX:RHY
Rhythm Biosciences — Investor Presentation (July 2021)
33 slides from Rhythm Biosciences's investor presentation, Jul 30, 2021
Slide 1: Rights Issue Investor Presentation
Rights Issue Investor Presentation July 2021 ASX:RHY A transformative and predictive cancer diagnostics technology company
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Rhythm Biosciences Limited (Rhythm) and is provided for general information purposes only. No party other than Rhythm has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or undert
Slide 3: Company Overview
Company Overview Capital Structure Share Price Chart ASX Code RHY $7,000,000 $1.80 $6,000,000 $1.60 Share Price (at 27 July 2021) $0.97 $5,000,000 $1.40 $1.20 Shares on Issue 202.2 M $4,000,000 $1.00 $3,000,000 $0.80 Unlisted Options 10.3 M $0.60 $2,000,000 $0.40 Market Capitalisation $196.1 M $1,00
Slide 4: Non-renounceable rights issue Offer
Non-renounceable rights issue Offer Key details of the Offer Post completion of the Rights Issue, Offer to Eligible Shareholders 1 New Share for every 40 Shares held at the Record RHY a pro forma cash balance of Date at the Issue Price plus approximately $6.5m, and indicative • 1 Class A Option and
Slide 5: Theoretical Value of Options
Theoretical Value of Options Rights Issue Offer Discount Current share price (at 27 July 2021) $0.9700 $1.60 Rights Issue offer $0.8500 Discount 12.4% $1.40 $0.40 option value $1.37 Discount vs Volume Weighted Average (VWAP) Share Price (ASX) $1.20 10 day VWAP - discount 9.9% $0.9429 $1.00 30 day VW
Slide 6: Indicative Timetable of Rights Issue
Indicative Timetable of Rights Issue Important dates* Record Date (to determine Entitlement of Eligible Shareholders to participate in the Offer) 6 August 2021 Opening Date of Rights Issue Offer - Dispatch of the Prospectus and Entitlement & Acceptance Form to Eligible Shareholders 10 August 2021 Cl
Slide 7: Use of funds
Use of funds Use of funds* USA market entry commencement (CLIA lab developed test & FDA $0.75m route) Commence platform technology research and development program for other cancer targets $0.75m Furthering and completing research and development of the current $0.30m ColoSTAT® test Completion of th
Slide 8: Applying for New Shares
Applying for New Shares You may take up all or part of your Entitlement by Contact (i) making payment by Bpay® corresponding to the component For any queries concerning your Entitlement please contact the (part or all) of your Entitlement you wish to accept, or Company Secretary on 03 9614 0600 (wit
Slide 9: Risks
Risks Shareholders should consider the investment in the context of their individual risk profile for speculative investments, investment objectives and individual financial circumstances. Each Shareholder should consult their own stockbroker, solicitor, accountant or other professional adviser befo
Slide 10: Key Investment Highlights
Key Investment Highlights As a simple, accurate & low-cost blood test, Rhythm’s ColoSTAT® has potential to substantially increase global mass market screening ✓ Transformative Diagnostic Company: Focused on early ✓ Sound technology: 13 years of R&D pioneered by detection of colorectal cancer (CRC) u
Slide 11: Colorectal Cancer
Colorectal Cancer Globally, Colorectal Cancer is currently the 3rd largest cancer by volume with 1.8 million new cases diagnosed annually and 2nd largest cause of cancer related deaths 1.8 million new cases1 850,000 deaths2 In most countries, screening is recommended for those aged between 50-74 yea
Slide 12: Bowel Cancer Treatment Costs Are Increasing
Bowel Cancer Treatment Costs Are Increasing Early detection is the key to survival and reducing the cost of treatment $130,000 $120,000 ? $110,000 Cost drivers: $100,000 • Private hospital Average treatment cost per person $100,000 • Public hospital $90,000 51% • Outpatient $80,000 increase • Doctor
Slide 13: ColoSTAT - What Is It? How Does It Work?
ColoSTAT® - What Is It? How Does It Work? A simple, accurate, low cost blood test for the early detection of colorectal cancer designed for the global mass market ✓ Detects protein biomarkers in the blood that are indicative of an increased likelihood of presence of colorectal cancer. (accurate) ✓ B
Slide 14: ColoSTAT - What Is It? How Does It Work?
ColoSTAT® - What Is It? How Does It Work? A simple, accurate, low cost blood test for the early detection of colorectal cancer designed for the global mass market Serum ColoSTAT® ColoSTAT® preparation Immunoassays Algorithm Routine blood Diagnostic Standard lab processes collection report Technology
Slide 15: Current FIT Pathway - Cumbersome/Not Well Adopted
Current FIT Pathway - Cumbersome/Not Well Adopted FIT Testing Central FIT Sample Pathology Collection lab Process Diagnostic assessment to GP * ➢ Multi step faecal collection, packaging over at least 2 days then posting sample back to a central laboratory. Obligation on patient to sample and label c
Slide 16: ColoSTAT - Patient Friendly, Increased Compliance
ColoSTAT® - Patient Friendly, Increased Compliance Early detection is the key to survival and reducing the cost of treatment Simple & Routine Patient Journey With ColoSTAT® ColoSTAT® - has the potential to: GP referral ✓Significantly increase screening compliance globally. ✓Save more lives, benefitt
Slide 17: ColoSTAT's Competitive Advantage
ColoSTAT®’s - Competitive Advantage Rhythm Faecal Immunochemical Test (FIT) Patient Preference Patient Preference Accuracy Accuracy Early Stage Detection Early Stage Detection Affordability Affordability Simple Process Simple Process Opportunistic Screening* Opportunistic Screening* ColoSTAT®’s comb
Slide 18: ColoSTAT - Development History
ColoSTAT® - Development History CSIRO (13+ years) Rhythm (3 years) • ColoSTAT® relies on detecting 14 targets 32 targets 46 targets Mid 2017 biomarkers in blood that tested tested tested Technology Licensed to Rhythm indicate an increased likelihood 102 samples 108 samples 146 samples Dec 2017 of pr
Slide 19: Clinical Trial (Study 7)
Clinical Trial (Study 7) – Performance In A Clinical Setting Trial Study Design End Points Key Recruitment Challenge: Prospective, Cross sectional, Primary: multicentre clinical trial. Performance of ColoSTAT® for ➢ Hospitals maintaining motivated key detection of CRC relative to Two cohorts: colono
Slide 20: Study 7 - New Trial Sites
Study 7 – New Trial Sites Motivated To Recruit “The burden of colorectal cancer and the benefits of early detection have been well recognised. The risk of colorectal cancer increases dramatically over 50 years of age, yet the majority of people in this age group remain unscreened. A blood-based diag
Slide 21: Confidence In Performance Moving Forward
Confidence In Performance Moving Forward ✓ Preliminary results from the prototype test-kit outperformed the current market standard (faecal test) and previous CSIRO test work. ✓ Confirmation of Study 6 results demonstrating exceptional accuracy / performance – bettering the prior outperformance. ✓ D
Slide 22: Key Achievements - Delivered In 2020/2021
Key Achievements - Delivered In 2020/2021 ✓ Technically validated the key lead and four adjunct biomarkers. ✓ Appointed additional clinical trial (Study 7) sites. ✓ ISO13485 Quality Management System certification maintained. ✓ Completed reagent development program. ✓ Commenced high-volume manufactu
Slide 23: Key Achievements - ColoSTAT Performance
Key Achievements - ColoSTAT® Performance Prototype test-kit results outperform current global market standard Sensitivity is the ability of the test to correctly identify those patients with colorectal cancer, that is, the percentage of people with colorectal cancer who are correctly identified as h
Slide 24: Market Opportunity – Global Screening Numbers
Market Opportunity – Global Screening Numbers Screening compliance & opportunity by market Europe (incl UK) China 19 % 38 % 63 50-74 population Japan 38 USA % 396.6M % 50-74 population 231.2M 321.2M 50-74 population unscreened 50-74 population 93.6M 41.5M 143.4M unscreened 34.7M 25.7M unscreened uns
Slide 25: Market Likely To Expand Significantly
Market Likely To Expand Significantly Colorectal Cancer is prevalent in younger segments of the population ✓ Colorectal cancer is the leading cause of cancer related deaths for 30-to-35-year-olds in both males and females in Australia. ✓ It is also the leading cause of cancer related deaths for 45-t
Slide 26: Where Could ColoSTAT Value Be Derived From
Where Could ColoSTAT® Value Be Derived From Who are the potential Simplified Value Story payers? Government – ColoSTAT® National Screening Program Because the vast majority of patients prefer a blood Government – Increased CRC screening rates test vs tests involving faecal handling National/Regional
Slide 27: Market Penetration
Potential ColoSTAT® Total Market Size (50-74yr old only) $4.68bn $11.56bn $336.5m $19.83bn $2.08bn (Patient/market share 50-74-year olds) Market Penetration 75% $3.51bn $8.67bn $252.4m $14.87bn $1.56bn $28.86bn 50% $2.34bn $5.78bn $168.2m $9.91bn $1.04bn $19.24bn 25% $1.17bn $2.89bn $84.13m $4.96bn
Slide 28: Go To Market Options
Go To Market Options Multiple avenues and market segments reduce risk and support a flexible and scalable business model National Screening Program/MBS Reimbursed Secondary Triage National • With its effectiveness and Screening Triage • As a transition, ColoSTAT® could be used as a follow affordabil
Slide 29: Competitive Landscape – ColoSTAT's Advantage
Competitive Landscape – ColoSTAT®’s Advantage Blood based Epigenomics Novigenix Volition Rx Epi proColon® Rhythm Colox® Nu.q™ ColoSTAT® ~$300 per ~$150 per <$100 ~$250 per test test per test test Clinical Genomics Colvera™ ~$400 per test ColoSTAT®’s comparative low cost & simplicity lends itself to
Slide 30: IP – Patents Filed In All Major Target Markets
IP – Patents Filed In All Major Target Markets Granted Pending ➢ Licensed from CSIRO United States France India ➢ Worldwide exclusive licence Australia Germany ➢ Patent wholly owned by Rhythm China (x2) Italy Biosciences Ltd* ➢ Expires 2031 Japan Luxembourg United Kingdom Netherlands ➢ Methods for d
Slide 31: Future Value Inflection Points – 2021
Future Value Inflection Points – 2021 With R&D significantly de-risked, anticipated near-term value inflection points on the path to towards commercialisation include: ➢ Finalisation and execution of European and Australian regulatory submission pathways. ➢ Commence USA / European / China / Asia mar
Slide 32: Glenn Gilbert, CEO, Rhythm Biosciences
Glenn Gilbert CEO, Rhythm Biosciences glenn.gilbert@rhythmbio.com +61 3 8256 2880 www.rhythmbio.com 32
Slide 33: APPENDIX 1 - Rights issue: Potential value
APPENDIX 1 - Rights issue: Potential value* Option Value – 1 year Option Value – 3 year Summary Share price - 27 July 2021 (P) $0.97 Share price - 27 July 2021 (P) $0.97 Value of Call (31 Aug 2022) $0.3249 Exercise price of option (EX) $1.20 Exercise price of option (EX) $1.80 Value of Call (31 Jul
Rhythm Biosciences — Investor Presentation (July 2021) on 6ix