RYTM - Rhythm Pharmaceuticals: Should The Market Reconsider The Data?

In early August, Rhythm Pharmaceuticals (RYTM) reported results from two phase 3 trials of its drug setmelanotide in rare genetic forms of obesity. The release of the results was met with a short term rally, but the stock found itself trading back at baseline within a few sessions. Through mid-to-late August there was a new rally in RYTM, and investors may be asking if the market has become upbeat about RYTM's future, perhaps having had some time to digest the data and the company's situation.

Figure 1: RYTM trading since