Rhythm Pharmaceuticals price target lowered to $139 from $145 at BofA

BofA analyst Tazeen Ahmad lowered the firm’s price target on Rhythm Pharmaceuticals (RYTM) to $139 from $145 and keeps a Buy rating on the shares after the company announced the Phase 3 EMANATE trial evaluating setmelanotide in four rare genetic obesity subtypes failed to demonstrate a statistically significant BMI reduction relative to placebo. While the firm acknowledges the study miss, it thinks additional evaluation is warranted given the post-hoc analysis data and Phase 2 DAYBREAK data, says the analyst, who pushes out timelines for a potential launch in rare genetic obesities to 2031 from a prior forecast of 2028.