Figma Shares Indicated To Open $105/$110
On Tuesday, Rhythm Pharmaceuticals (NASDAQ:RYTM) received a positive adjustment from H.C. Wainwright, as the firm's analyst Raghuram Selvaraju increased the price target on the company's stock to $80.00, up from the previous target of $70.00. This target sits within the current analyst range of $63 to $94, with InvestingPro data showing 4 analysts recently revising their earnings estimates upward. The Buy rating on the stock was reaffirmed by the analyst following the announcement of successful trial results.
Rhythm Pharmaceuticals shared the outcomes of the Phase 3 TRANSCEND trial on Monday, which tested their drug setmelanotide, a melanocortin-4 receptor (MC4R) agonist, in treating acquired hypothalamic obesity (HO). The trial achieved its primary goal, demonstrating a statistically significant and clinically meaningful reduction in body mass index (BMI) among both adult and pediatric participants when compared to a placebo. The market has responded positively to these developments, with the stock posting a nearly 10% gain over the past week and maintaining impressive gross profit margins of about 90%.
The analyst's decision to raise the price target is based on the robust trial results, which have led to an increased probability of approval for setmelanotide in the treatment of acquired HO. The estimated likelihood of approval has been lifted to 85%, a substantial increase from the prior estimate of 65%.
The TRANSCEND trial's success marks a significant milestone for Rhythm Pharmaceuticals, potentially paving the way for setmelanotide to become a new treatment option for patients suffering from acquired HO. The company's stock price responded positively to this news, reflecting the market's optimism regarding the drug's prospects.
The new price target of $80.00 set by H.C. Wainwright indicates a strong confidence in the future performance of Rhythm Pharmaceuticals' stock, as the company advances setmelanotide towards potential market approval and commercialization. With a market capitalization of $3.47 billion and its next earnings report due on May 6, investors seeking deeper insights into RYTM's financial health and growth prospects can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US stocks.
In other recent news, Rhythm Pharmaceuticals has reported positive results from its Phase 3 TRANSCEND trial, achieving a significant -19.8% placebo-adjusted reduction in body mass index (BMI) for patients with acquired hypothalamic obesity treated with setmelanotide. This development has led to increased confidence among analysts, with Canaccord Genuity raising its price target for Rhythm Pharmaceuticals to $92, maintaining a Buy rating. Similarly, Oppenheimer has reiterated its Outperform rating and a $76 price target, projecting peak worldwide sales of over $1.5 billion for setmelanotide in the hypothalamic obesity indication alone. BofA Securities has also upgraded the stock from Neutral to Buy, raising the price target to $63, citing the recent trial success as a promising sign for the company's pipeline and commercial programs. Stifel analysts have maintained their Buy rating with a $78 price target, noting the trial's results as exceptional for a typically hard-to-treat patient group. The company plans to submit a supplemental New Drug Application in the third quarter of 2025 and anticipates a priority review due to the drug's Breakthrough Therapy Designation status. The TRANSCEND trial is noted as the largest and longest placebo-controlled study for this condition, with no new safety signals observed. Rhythm Pharmaceuticals is preparing to present full data from the trial at an upcoming medical meeting and expects additional data from a Japanese cohort in early 2026.
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