HST - Rhythm Pharma stock surges 21% on higher Q2 license revenue genetic disorder drug Imcivree sales

• Rhythm Pharmaceuticals ( NASDAQ: RYTM ) is trading 21% higher after the company posted narrower-than-expected Q2 loss, helped by sales of its genetic disorder drug, Imcivree and license revenue.
• The company posted Q2 GAAP EPS of -$0.89, which beat estimates by $0.06.
• Product net revenues relating to sales of Imcivree were $2.3M for the second quarter vs $0.3M, a year earlier.
• License revenue relating to the company’s out-license arrangement with RareStone was $6.8M. There were no comparable transactions in the prior year.
• Rhythm also announced that it had completed enrollment in the Phase 3 trial testing setmelanotide therapy in pediatric patients with MC4R pathway deficiencies between the ages of 2 and 6 years old.
• MC4R deficiency causes increase in lean body mass and bone mineral density, increased linear growth, hyperphagia, and severe hyperinsulinemia.
• R&D expenses rose 25% Y/Y to $31.5M, due to an increase of $4.6 million in clinical trial costs associated with new and planned clinical trials.
• Rhythm believes that its existing cash of $235.6M as of June 30 will be sufficient to fund operations into 2024.

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