RYTM - Rhythm Pharma extends gains to reach three-month high

The shares of commercial stage biotech Rhythm Pharmaceuticals ( NASDAQ: RYTM ) rose sharply for the second straight session on Wednesday to approach the highest level since mid-April as Wall Street reacts to the company’s Phase 2 data for setmelanotide in hypothalamic obesity.

The interim readout as of May 06 included data for 11 evaluable patients with the rare form of extreme obesity. The findings for the open-label trial showed that after 16 weeks of therapy, there was a ~17% decline in the mean percentage change in BMI and a ~16% drop in the average change in body weight from baseline.

Arguing that the data highlights the potential of setmelanotide in a relatively bigger market opportunity, Ladenburg Thalmann has raised the price target on Rhythm ( RYTM ) to $23 from $15 per share.

The analyst Michael Higgins, who maintains the Buy rating, on the stock points out that the number of reasonably identifiable patients with the condition, is approximately 10-fold higher than the conditions for which the drug was previously tested.

Setmelanotide is available as Imcivree in the U.S., U.K., and Europe for a group of rare genetic diseases of obesity.

In 2021, Imcivree added $3.2M net product revenue for Rhythm ( RYTM ), including $1.8M in 4Q 2021.

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