Analyst Jonathan Wolleben from JMP Securities reiterated a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report) and keeping the price target at $81.00.
Jonathan Wolleben has given his Buy rating due to a combination of factors that highlight the potential of Rhythm Pharmaceuticals’ setmelanotide in treating hypothalamic obesity (HO). One of the key reasons is the high unmet medical need in this area, as there are currently no approved therapies for HO, which is typically caused by disruptions in the melanocortin-4 receptor (MC4R) pathway due to brain tumors and their treatment. Setmelanotide addresses the root cause of the condition, which includes severe obesity and hyperphagia, offering a promising solution for the estimated 5,000-10,000 patients in the U.S. alone.
Additionally, the upcoming Phase 3 data for setmelanotide is highly anticipated, as previous Phase 2 results have shown promise in managing HO, a condition that does not respond well to existing obesity treatments like GLP-1 agonists or bariatric surgery. The limited competition in the market further strengthens the case for setmelanotide, as off-label use of current anti-obesity drugs has shown modest and variable efficacy. The involvement of experts like Dr. Lewis Blevins, who has extensive experience with hypothalamic disorders, adds credibility to the potential success of setmelanotide, making it an attractive investment opportunity.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $81.00 price target.