Rhythm Pharmaceuticals assumed with an Outperform at Leerink

Rhythm Pharmaceuticals (RYTM) presented new data at the 64th ESPE Meeting, showing positive results for setmelanotide in treating paediatric acquired hypothalamic obesity, including BMI reductions and improved metabolic indices. Analysts note this strengthens the company's clinical story but does not alter its near-term financial losses. The data may support future regulatory and reimbursement progress, with analysts projecting significant revenue growth by 2029.

Rhythm Pharmaceuticals (RYTM) presented data at ESPE 2026 showing setmelanotide reduced BMI and improved cardiometabolic markers in paediatric hypothalamic obesity patients. Real-world data from France showed mean BMI reductions of 11.5% at 6 months and 9.0% at 18 months. Phase 3 analyses showed significant improvements in metabolic indices compared to placebo.

Gilead (GILD) and Roivant (ROIV) received FDA approvals for Bixlenvo and LISRAYA, respectively. Johnson & Johnson (JNJ) also gained approval for IMAAVY. Biohaven (BHVN) and Eli Lilly (LLY) advanced partnerships. Spyre Therapeutics missed a clinical trial goal. Key stocks: GILD +0.52%, ROIV +2.26%, JNJ -1.57%.

Rhythm Pharmaceuticals (RYTM) received marketing approval in Japan for its drug IMCIVREE. The stock has gained 11% in the past month and 24% in 90 days. Analysts suggest the company may be 15% undervalued, with a fair value estimate of $134, but it trades at a high P/S ratio of 32.5x.

Rhythm Pharmaceuticals (RYTM) received Japanese approval for IMCIVREE to treat acquired hypothalamic obesity, a rare condition. The approval follows a Phase 3 trial showing significant BMI reduction. Rhythm estimates 5,000-8,000 people in Japan have this condition. The UK also expanded IMCIVREE's authorization. RYTM stock is up 0.99% to $110 at close, down 0.72% in pre-market.

Rhythm Pharmaceuticals (RYTM) was named TD Cowen's top pick after strong Q2 results. Imcivree revenue hit $71.3M, up 19% QoQ and 50% YoY, driven by U.S. sales growth. Clinical data for RM-718 showed a 11.6% BMI reduction. TD Cowen maintained a buy rating with a $130 price target, citing commercial and clinical progress.