Analyst Derek Archila from Wells Fargo reiterated a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) and keeping the price target at $91.00.
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Derek Archila has given his Buy rating due to a combination of factors including the promising outlook for Rhythm Pharmaceuticals’ drug, IMCIVREE. The drug is expected to see substantial utilization in hypothalamic obesity (HO), with a high adoption rate anticipated due to its demonstrated efficacy in Phase 3 trials. The consistency of the drug’s performance across various studies, including real-world evidence from France, supports the expectation that a significant majority of patients will benefit from its use.
Additionally, the safety profile of IMCIVREE is considered acceptable, even in medically complex patients, which further bolsters confidence in its adoption. The potential for IMCIVREE to address Prader-Willi syndrome (PWS), although currently not factored into valuations, presents an additional opportunity. The analyst believes that if either bivamelagon or RM-718 shows positive proof of concept in HO patients, the stock could trade above $100, reinforcing the long-term durability of Rhythm Pharmaceuticals’ MC4R franchise.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $78.00 price target.