RYTM - Rhythm: Navigating Imcivree's Potential In Rare Obesity Treatments (Rating Upgrade)
2024-06-12 01:43:22 ET
Summary
- Rhythm Pharmaceuticals' stock has appreciated 68% since the last sell recommendation, outperforming market returns.
- Imcivree shows promising Phase 2 results in treating hypothalamic obesity, potentially doubling its market if its Phase 3 trial proves successful.
- The company's financial health appears stable, with a sufficient cash runway extended by recent funding.
- The Phase 3 trial for Imcivree in heterozygous mutations aims to broaden the addressable population to exceed 50,000.
- I now hold a more balanced view of RYTM stock, acknowledging its strategic expansions but cautious of its high valuation and ongoing risks.
Assessing Imcivree's Reach: Rhythm Pharmaceuticals' Strategic Expansion
I last visited Rhythm Pharmaceuticals ( RYTM ) in August. Back then, I focused on their lead drug, Imcivree, indicated for the treatment of obesity caused by rare genetic disorders like POMC, PCSK1 or LEPR deficiencies. Despite my sell recommendations , Rhythm's stock keeps going up. RYTM has appreciated 68% since my last sell recommendation, compared to SP500 returns of just 18%. My personal concern with Rhythm was summarized as follows:
Rhythm: Navigating Imcivree's Potential In Rare Obesity Treatments (Rating Upgrade)I'm still weary of Imcivree and its limited application. The potential side effects, unclear safety profile, and the challenges in managing genetic tests to confirm the drug's suitability continue to linger as concerns.