Analyst Whitney Ijem of Canaccord Genuity maintained a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report), retaining the price target of $81.00.
Whitney Ijem has given his Buy rating due to a combination of factors surrounding Rhythm Pharmaceuticals’ promising drug profile and its potential impact on treating hypothalamic obesity (HO). The webcast with Dr. Sharon Wardlaw highlighted the unique capabilities of setmelanotide, a drug developed by Rhythm Pharmaceuticals, which could become a first-line therapy for HO if approved. This is particularly significant as current treatments do not adequately address the underlying issues of hyperphagia and metabolic dysfunction in HO patients.
Dr. Wardlaw’s insights emphasized the role of the melanocortin pathway in regulating food intake and energy balance, which is disrupted in HO. Setmelanotide’s ability to target this pathway offers a novel approach to managing the condition. Patients in clinical trials reported a reduction in constant hunger and a return to baseline feelings of satiety, unlike those on existing GLP-1 therapies. These promising results underpin Ijem’s positive outlook on Rhythm Pharmaceuticals’ stock.
In another report released on March 27, JMP Securities also reiterated a Buy rating on the stock with a $81.00 price target.