Rhythm Pharmaceuticals (NASDAQ:RYTM) Issues Earnings Results

by · The Markets Daily

Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) issued its quarterly earnings results on Tuesday. The company reported ($0.61) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.71) by $0.10, Zacks reports. The company had revenue of $92.13 million during the quarter, compared to the consensus estimate of $85.56 million. Rhythm Pharmaceuticals had a negative return on equity of 159.87% and a negative net margin of 85.59%. Rhythm Pharmaceuticals’s revenue was up 79.6% on a year-over-year basis. During the same period last year, the company earned ($0.82) earnings per share.

Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:

  • Strong U.S. acquired hypothalamic obesity launch: Q3 global IMCIVREE revenue rose 29% sequentially to $92.1 million, with U.S. revenue of $67.5 million. Rhythm reported more than 700 acquired HO patient start forms, over 500 prescribers, and continued demand growth entering Q4.
  • Encouraging market access: Approximately 60% of Medicaid-covered lives and 75% of commercial-covered lives were covered by acquired HO policies at quarter-end, while more than 80% of reimbursement approvals were obtained within 60 days of receiving a start form.
  • International expansion is underway: IMCIVREE launched in Japan on October 14 at a price of approximately $2,200 per vial, with more than 1,000 potentially eligible patients identified. Rhythm expects Japan to become its second-largest market, although two-week prescription limits may constrain first-year revenue; European launches are expected to begin in 2027.
  • Pipeline expansion: Rhythm plans to initiate a phase III bivamelagon study in hypothalamic obesity in early 2027 and pursue a six-month phase III Prader-Willi syndrome study focused on hyperphagia. Management also expects to develop next-generation MC4R therapies and potential combination approaches.
  • Higher financing obligations: Rhythm amended its LG Chem agreement to reduce potential royalties to a 1% flat rate, but committed to $350 million in payments over four years and took an initial $250 million term loan at SOFR plus 4.6%. The company ended Q3 with about $321 million in cash and investments, excluding these transaction-related cash flows.

Rhythm Pharmaceuticals Trading Down 10.2%

NASDAQ RYTM traded down $9.55 on Tuesday, hitting $83.89. 2,764,239 shares of the company’s stock traded hands, compared to its average volume of 760,835. The firm’s 50-day moving average price is $96.85 and its two-hundred day moving average price is $97.29. The firm has a market capitalization of $5.75 billion, a PE ratio of -26.75 and a beta of 2.01. Rhythm Pharmaceuticals has a 1-year low of $74.50 and a 1-year high of $122.20.

Insider Transactions at Rhythm Pharmaceuticals

In related news, CEO David Meeker sold 50,000 shares of the firm’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the completion of the transaction, the chief executive officer owned 239,258 shares of the company’s stock, valued at $24,564,618.86. This trade represents a 17.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jennifer Lee sold 75,834 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $117.38, for a total transaction of $8,901,394.92. Following the completion of the sale, the executive vice president directly owned 54,233 shares in the company, valued at approximately $6,365,869.54. The trade was a 58.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 258,450 shares of company stock valued at $28,796,497. 5.90% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several brokerages have recently weighed in on RYTM. HC Wainwright increased their target price on shares of Rhythm Pharmaceuticals from $105.00 to $130.00 and gave the company a “buy” rating in a research note on Monday, October 12th. Citizens Jmp increased their price target on Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the stock a “market outperform” rating in a research report on Wednesday, August 5th. Weiss Ratings restated a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research note on Thursday, October 15th. Wolfe Research started coverage on Rhythm Pharmaceuticals in a report on Thursday, September 17th. They issued an “outperform” rating for the company. Finally, Leerink Partners initiated coverage on shares of Rhythm Pharmaceuticals in a research note on Monday, September 14th. They issued an “outperform” rating and a $133.00 price objective for the company. Eighteen research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $142.50.

View Our Latest Analysis on Rhythm Pharmaceuticals

Rhythm Pharmaceuticals Company Profile

(Get Free Report)

Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare genetic diseases of obesity and related metabolic disorders. The company’s work is based on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.

Rhythm’s principal product is IMCIVREE (setmelanotide), a targeted therapy designed to restore impaired MC4R pathway signaling. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 6 years old with obesity caused by certain genetic deficiencies, including POMC, PCSK1, or LEPR deficiency, as well as Bardet-Biedl syndrome.

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