RYTM - Rhythm Pharma adds 14% as Goldman upgrades on potential of wight loss agent
The shares of Rhythm Pharmaceuticals ( NASDAQ: RYTM ) jumped ~14% in the morning hours Monday after Goldman Sachs upgraded the commercial-stage biotech to Buy from Neutral and raised the price target to $28 from $6, citing the potential of its weight loss therapy setmelanotide.
Currently, setmelanotide, branded as Imcivree, is indicated in the U.S. for chronic weight management of patients with certain rare genetic diseases of obesity.
Last month, Rhythm ( RYTM ) announced positive interim data for the therapy from a Phase 2 trial in patients with hypothalamic obesity.
Despite over 320% gain in Rhythm ( RYTM ) shares since the data readout, Goldman Sachs analysts Corinne Jenkins and Palak Garg expect further upside for the stock, albeit in a non-linear path.
As reasons for the bullish view, the analysts note a potential weekly formulation for Imcivree, which could extend its patent protection to 2038.
Additionally, they highlight further success for the drug in hypothalamic obesity, given the upcoming late-stage study expected to start in 1H 2023.
Goldman Sachs also points to better-than-expected early sales for Imcivree in Bardet-Biedl Syndrome, where 50 patients have already been prescribed the therapy in the first six months from the approval.
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Rhythm Pharma adds 14% as Goldman upgrades on potential of wight loss agent