Figma Shares Indicated To Open $105/$110
On Thursday, Citizens JMP analysts reaffirmed a Market Outperform rating for Rhythm Pharmaceuticals (NASDAQ:RYTM) stock, keeping the price target steady at $84. According to InvestingPro data, analyst targets range from $72 to $94, with four analysts recently revising earnings upward for the upcoming period. The analysts highlighted the company’s ongoing developments, including a late-breaking poster on setmelanotide, which details its effects over three years in patients with POMC/LEPR deficiency or Bardet-Biedl syndrome (BBS). This data is expected to support the chronic use of the MC4R agonist in its approved indications.
Rhythm Pharmaceuticals, currently valued at $4.1 billion, is also set to host a product theater on Saturday, titled "Not All Obesity is the Same – a Look at Obesities caused by Rare Neuro-endocrine Diseases." The event aims to draw attention to the unique aspects of obesity linked to these rare conditions. The company maintains impressive gross profit margins of 89.6%, reflecting strong commercial execution in its niche market.
Looking ahead, the company anticipates releasing Phase 2 data for its next-generation oral MC4R agonist, bivamelagon, next quarter. Analysts view this as a significant potential value driver for the shares, as the success of bivamelagon could extend intellectual property protection by about 10 years, enhancing the commercial opportunity in the hypothalamic obesity market.
Recent discussions indicate that investors have yet to fully recognize the potential value creation associated with bivamelagon’s success. The analysts believe this could be a critical factor in the stock’s future performance.
Rhythm Pharmaceuticals continues to focus on advancing its pipeline and exploring new opportunities to address rare neuro-endocrine diseases, which could have a substantial impact on its market position.
In other recent news, Rhythm Pharmaceuticals reported its Q1 2025 earnings, showing a larger-than-expected loss per share and revenue shortfall. The company posted a GAAP EPS of -$0.81, missing the consensus estimate, while revenue reached $37.72 million, falling short of the anticipated $40.7 million. Despite this, the company experienced a 45% year-over-year increase in net product revenues, reaching $11.7 million. Stifel analysts have raised their price target for Rhythm Pharmaceuticals to $94, maintaining a Buy rating, citing confidence in the company’s obesity drug setmelanotide and its pipeline products. Recent data presented by Rhythm Pharmaceuticals at European congresses highlighted the potential effectiveness of setmelanotide in reducing BMI and hunger in patients with hypothalamic obesity. The company plans to submit a supplemental New Drug Application for setmelanotide for acquired hypothalamic obesity in the third quarter of 2025. In addition, Rhythm Pharmaceuticals is preparing for a Q3 filing for cetmelanotide in acquired hypothalamic obesity following positive Phase III trial results. The company’s cash reserves remain strong, providing a financial runway projected into 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.