Rhythm Pharmaceuticals stock rating reiterated by Citizens JMP ahead of key data

Published 02/07/2025, 09:56
Rhythm Pharmaceuticals stock rating reiterated by Citizens JMP ahead of key data

Investing.com - Citizens JMP analyst reiterated a Market Outperform rating and $84.00 price target on Rhythm Pharmaceuticals (NASDAQ:RYTM), which has delivered a 54% return over the past year and trades near its 52-week high of $69.89. The rating comes ahead of upcoming clinical data for its oral MC4R agonist bivamelagon. According to InvestingPro, analysts maintain a Strong Buy consensus with targets ranging from $72 to $94.

The company will present its first Phase 2 data for bivamelagon in hypothalamic obesity (HO) as a late-breaking poster on Saturday, July 12, during the "From Biology to Behavior: Addressing the Spectrum of Obesity-Related Issues I" session.

The open-label Phase 2 SIGNAL trial enrolled 28 HO patients aged 12 years and older, randomized to one of three daily doses of oral bivamelagon or placebo for 14 weeks, with change in BMI as the primary endpoint.

Citizens JMP views the mechanism as largely de-risked by Rhythm’s daily subcutaneous MC4R agonist setmelanotide, noting that both compounds showed comparable preclinical weight loss and BMI reductions in healthy subjects during Phase 1 testing.

Rhythm may also have initial data from the Phase 1 cohort of HO patients for weekly subcutaneous MC4R agonist RM-718 before year-end 2025, with both candidates potentially expanding the HO opportunity through improved dosing regimens and extended composition of matter intellectual property into the 2040s.

In other recent news, Rhythm Pharmaceuticals is making strides with its drug setmelanotide, which has shown promise in reducing body mass index (BMI) and hunger in patients with hypothalamic obesity. Recent data from real-world use in France indicated substantial BMI reductions in both adult and pediatric patients over a nine-month period. The company plans to submit a supplemental New Drug Application to the FDA for setmelanotide in acquired hypothalamic obesity by the third quarter of 2025. Analysts at Stifel have raised their price target for Rhythm Pharmaceuticals to $94, citing confidence in the company’s potential market size and adoption rates for setmelanotide, as well as optimism for the pipeline drugs bivamelagon and RM-718. Citizens JMP also maintains a market outperform rating with an $84 price target, emphasizing the potential of bivamelagon as an oral treatment option with extended patent protection. Jefferies analysts continue to support a Buy rating, focusing on upcoming Phase II and Phase IB data that could bolster the company’s growth prospects. The possibility of mergers and acquisitions was noted by Jefferies as a future scenario once the pipeline is further de-risked. Rhythm Pharmaceuticals remains focused on advancing its pipeline, with several clinical milestones anticipated in the coming years.

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