In a report released yesterday, Whitney Ijem from Canaccord Genuity maintained a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report), with a price target of $81.00.
Whitney Ijem has given his Buy rating due to a combination of factors that highlight Rhythm Pharmaceuticals’ potential. The company is on the verge of releasing Phase 3 data for setmelanotide, a treatment aimed at addressing hypothalamic obesity (HO), a condition with limited effective treatment options. The anticipated data is expected to be straightforward and interpretable, focusing on the primary endpoint of placebo-adjusted percentage change in BMI over a 52-week period. This data will also be segmented by age to assess efficacy in both pediatric and adult patients.
Given the lack of durable treatment options for HO, setmelanotide’s potential to provide a consistent benefit is significant. The placebo group in the study is expected to show minimal change, which could highlight the efficacy of setmelanotide. Additionally, the company’s conservative estimates regarding the prevalence of HO in the US, EU, and Japan suggest a substantial market opportunity. These factors combined provide a strong basis for the Buy rating, as the company is positioned to address a significant unmet medical need.
In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $66.00 price target.
RYTM’s price has also changed slightly for the past six months – from $53.640 to $52.290, which is a -2.52% drop .