RYTM - Rhythm downgraded at BofA despite newly announced clinical studies

Rhythm Pharmaceuticals (RYTM -18.3%) has lost more than a tenth in morning hours after the company’s revenue for Q2 2021 lagged analyst estimates on Tuesday. In addition, after the close, the company announced five new mid-stage and late-stage clinical studies for setmelanotide targeting certain rare genetic diseases of obesity. Notably, Rhythm (NASDAQ:RYTM) targets ~100K – 200K patients with its pivotal EMANATE Phase 3 trial which will include five independent sub-studies designed to target obesities due to various genetic factors. However, commenting on the announcement, Bank of America has downgraded Rhythm (RYTM) to underperform from neutral as the analysts led by Tazeen Ahmad highlight the need for more visibility into the new studies. The team called the move “a step in the right direction,” as studies are aimed at a much larger subset of patients than the currently approved indication for setmelanotide. “We think it is prudent to assume more conservative

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Rhythm downgraded at BofA despite newly announced clinical studies