Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) and keeping the price target at $80.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors, primarily focusing on the promising prospects of Rhythm Pharmaceuticals’ product, IMCIVREE (setmelanotide). The drug is positioned for significant growth, particularly with the potential label expansion into the hypothalamic obesity (HO) indication. This expansion is supported by strong data from the Phase 3 TRANSCEND trial, which showed substantial placebo-adjusted reductions in body mass index (BMI) across various age groups, indicating a robust efficacy profile.
Additionally, the market opportunity for setmelanotide is substantial, with a significant number of potential patients in the U.S., Japan, and the EU. The anticipated regulatory submissions in the U.S. and EU by the third quarter of 2025, coupled with a potentially swift review process, further bolster the drug’s commercial prospects. The consistent safety profile and the potential for early deployment in HO patients upon approval also contribute to the positive outlook, reinforcing the Buy rating for Rhythm Pharmaceuticals.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $92.00 price target.