Rhythm Pharmaceuticals (RYTM) AI Stock Analysis

• Market Cap: $6.97B
• Dividend Yield: N/A
• Average Volume (3M): 577.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 54.92%
• EPS Growth: 28.47%
• Country: US
• Employees: 283
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.82
• Shares Outstanding: 66,420,090
• 10 Day Avg. Volume: 585,175
• 30 Day Avg. Volume: 577,643
• PEG Ratio: -0.37
• Price to Book (P/B): 20.75
• Price to Sales (P/S): 26.24
• P/FCF Ratio: -29.98
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $125.89
• Price Target Upside: 26.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $106.00 ▲(6.56% Upside)

Rhythm Pharmaceuticals' overall stock score is driven by its strong revenue growth and positive technical indicators, suggesting potential for future gains. However, the company's ongoing profitability challenges and negative valuation metrics weigh heavily on the score. The optimistic sentiment from the earnings call provides some support, but the financial performance remains a significant concern.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for products and effective market penetration, supporting long-term growth.

Regulatory Progress

FDA acceptance enhances product pipeline credibility and potential market expansion, positively impacting long-term revenue streams.

International Market Expansion

Expanding international presence diversifies revenue sources and reduces reliance on domestic markets, bolstering resilience and growth.

Negative Factors

Profitability Challenges

Continued struggles with profitability can limit reinvestment capabilities and affect long-term financial health and shareholder returns.

High Operating Expenses

Rising operating expenses can erode margins and delay profitability, impacting financial sustainability and strategic flexibility.

Prader-Willi Syndrome Trial Challenges

Difficulties in clinical trials can hinder product development and delay market entry, affecting future growth prospects and investor confidence.

Rhythm Pharmaceuticals Business Overview & Revenue Model

Company Description

Rhythm Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative therapies for the treatment of rare genetic disorders of obesity. The company operates primarily in the biotechnology sector and is committed to addressing unmet medical needs in patients suffering from these conditions. Rhythm's core product, Imcivree (setmelanotide), is specifically designed to target the underlying biological mechanisms of obesity due to certain genetic causes, enhancing patient outcomes and quality of life.

How the Company Makes Money

Rhythm Pharmaceuticals generates revenue primarily through the sale of its lead product, Imcivree. The company markets this therapy to healthcare providers and specialty pharmacies, leveraging its focused sales and marketing strategies aimed at reaching patients with rare genetic obesity disorders. Additionally, Rhythm may engage in collaboration agreements or partnerships with other pharmaceutical companies to enhance its research and development capabilities, which can provide upfront payments, milestone payments, and royalties on future sales. The company's revenue model is further supported by the potential expansion of its product pipeline and new indications for existing therapies, which can attract additional revenue streams.

Rhythm Pharmaceuticals Financial Statement Overview

Summary

Rhythm Pharmaceuticals shows a positive revenue growth trend with a TTM revenue growth rate of 11.55%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 89.40% TTM, suggesting efficient cost management, but the overall profitability is hindered by high operating expenses. The balance sheet reveals a high debt-to-equity ratio of 1.56 in the previous year, which has improved to 0.00 in the TTM, indicating reduced leverage. However, the return on equity remains negative, reflecting ongoing losses. The cash flow statement shows a significant improvement in free cash flow growth at 61.14% TTM. The operating cash flow to net income ratio is positive, suggesting some operational efficiency. However, the company still faces challenges with negative operating cash flow, indicating a need for better cash management.

Income Statement

Rhythm Pharmaceuticals shows a positive revenue growth trend with a TTM revenue growth rate of 11.55%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 89.40% TTM, suggesting efficient cost management, but the overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.56 in the previous year, which has improved to 0.00 in the TTM, indicating reduced leverage. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 61.14% TTM. The operating cash flow to net income ratio is positive, suggesting some operational efficiency. However, the company still faces challenges with negative operating cash flow, indicating a need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.33M	130.13M	77.43M	23.64M	3.15M	0.00
Gross Profit	155.86M	116.76M	68.13M	21.50M	2.56M	-690.00K
EBITDA	-169.02M	-238.09M	-168.46M	-174.25M	-68.45M	-135.88M
Net Income	-192.33M	-260.60M	-184.68M	-181.12M	-69.61M	-130.73M
Balance Sheet
Total Assets	506.87M	392.27M	332.75M	382.48M	329.52M	187.07M
Cash, Cash Equivalents and Short-Term Investments	416.05M	320.56M	275.85M	333.29M	294.86M	172.79M
Total Debt	151.00M	256.57M	1.26M	1.94M	2.55M	3.09M
Total Liabilities	358.06M	227.72M	162.99M	118.22M	45.37M	20.55M
Stockholders Equity	148.82M	164.55M	169.76M	264.26M	284.15M	166.53M
Cash Flow
Free Cash Flow	-109.13M	-113.88M	-136.20M	-177.71M	-151.44M	-122.19M
Operating Cash Flow	-109.13M	-113.88M	-136.16M	-173.43M	-146.00M	-121.98M
Investing Cash Flow	-146.34M	-48.17M	-5.67M	28.03M	-62.16M	158.53M
Financing Cash Flow	259.24M	191.24M	74.37M	213.83M	166.48M	2.01M

Rhythm Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYTM, the sentiment is Negative. The current price of 99.47 is below the 20-day moving average (MA) of 108.44, below the 50-day MA of 103.15, and above the 200-day MA of 75.74, indicating a neutral trend. The MACD of 1.73 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYTM.

Rhythm Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGTX	65 Neutral	$5.36B	12.16	111.96%	―	100.88%	―
RNA	54 Neutral	$10.19B	―	-37.76%	―	1.23%	-20.45%
CYTK	53 Neutral	$7.13B	―	―	―	2635.74%	4.66%
RYTM	52 Neutral	$6.97B	―	-240.36%	―	54.92%	28.47%
ABVX	52 Neutral	$7.91B	―	―	―	―	18.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	51 Neutral	$5.92B	―	-29.71%	―	74.86%	-13.23%

Rhythm Pharmaceuticals Corporate Events

Rhythm Pharmaceuticals Reports Q3 2025 Financial Results

Rhythm Pharmaceuticals is a commercial-stage biopharmaceutical company dedicated to improving the lives of patients with rare neuroendocrine diseases, primarily through its lead asset, IMCIVREE (setmelanotide), which targets syndromic or monogenic obesity. The company operates within the biopharmaceutical sector and is known for its focus on rare genetic disorders.

Rhythm Pharmaceuticals’ Setmelanotide Trial: A Potential Game-Changer in Obesity Treatment

Rhythm Pharmaceuticals is conducting a Phase 3 clinical trial titled A Phase 3, Double Blind, Randomized, Placebo-Controlled Trial to Evaluate the Efficacy and Safety of Setmelanotide in Patients With Acquired Hypothalamic Obesity. The study aims to assess the effectiveness and safety of Setmelanotide in reducing weight, hunger, and improving the quality of life in patients aged 4 and older with congenital Hypothalamic Obesity (cHO).

Rhythm Pharmaceuticals Advances Setmelanotide Study for Prader-Willi Syndrome

Study Overview: Rhythm Pharmaceuticals is conducting a Phase 2 open-label study titled A Phase 2 Open-label Study of Setmelanotide in Patients With Prader-Willi Syndrome. The study aims to evaluate the safety and efficacy of setmelanotide in treating obesity due to Prader-Willi Syndrome (PWS) in patients aged 6 to 65. This research is significant as it addresses the unmet medical need for effective treatments for PWS-related obesity.

Rhythm Pharmaceuticals’ RM-718 Study: A Potential Game-Changer in Obesity Treatment

Rhythm Pharmaceuticals is conducting a study titled A Study of RM-718 Weekly Formulation in Healthy Subjects With Obesity and in Patients With Hypothalamic Obesity (HO). The study aims to evaluate the safety, tolerability, and pharmacokinetics of RM-718 in both healthy individuals with obesity and patients suffering from hypothalamic obesity. This research is significant as it could lead to new treatment options for obesity-related conditions.

Rhythm Pharmaceuticals’ Setmelanotide Study: A Promising Step in Rare Obesity Treatment

Study Overview: Rhythm Pharmaceuticals is conducting an open-label extension study titled ‘Open-Label Extension Study of Setmelanotide in Patients With a Rare Genetic, Syndromic or Acquired Disease of the MC4R Pathway.’ The study aims to assess the long-term safety and tolerability of setmelanotide in patients with obesity related to defects in the leptin-melanocortin pathway, highlighting its potential significance in treating rare genetic obesity disorders.

Rhythm Pharmaceuticals’ New Study on Bivamelagon: A Potential Game-Changer for Hypothalamic Obesity

Study Overview: Rhythm Pharmaceuticals is conducting a long-term study titled A Long-Term, Open-Label Extension Study of Bivamelagon in Participants With Hypothalamic Obesity (HO). The study aims to evaluate the effects of bivamelagon over an extended period in individuals with Hypothalamic Obesity, a condition that significantly impacts weight management. This research is crucial as it seeks to provide a sustainable treatment option for those affected by this challenging condition.

Rhythm Pharmaceuticals Advances Genetic Obesity Treatment with Setmelanotide Study

Rhythm Pharmaceuticals is conducting a Phase 3 clinical study titled EMANATE: A Study of Setmelanotide in Patients With Specific Gene Variants in the MC4R Pathway. The study aims to evaluate the efficacy of setmelanotide, a potential treatment for obesity in patients with specific genetic variants in the Melanocortin-4 Receptor pathway, including POMC/PCSK1, LEPR, NCOA1(SRC1), or SH2B1. This research is significant as it targets genetic causes of obesity, potentially offering a new therapeutic avenue for affected individuals.

Rhythm Pharmaceuticals’ RM-718 Study: A Potential Game-Changer in Obesity Treatment

Rhythm Pharmaceuticals is conducting a study titled A Study of RM-718 Weekly Formulation in Healthy Subjects With Obesity and in Patients With Hypothalamic Obesity (HO). The study aims to evaluate the safety, tolerability, and pharmacokinetics (PK) of RM-718 in both healthy individuals with obesity and patients with hypothalamic obesity. This research is significant as it explores potential treatments for obesity-related conditions, which are prevalent and challenging to manage.

Rhythm Pharmaceuticals Advances Genetic Obesity Treatment with Setmelanotide Study

Rhythm Pharmaceuticals is conducting a Phase 3 clinical trial titled ‘EMANATE: A Study of Setmelanotide in Patients With Specific Gene Variants in the MC4R Pathway.’ The study aims to evaluate the efficacy of setmelanotide, a drug designed to treat obesity in patients with specific genetic variants affecting the Melanocortin-4 Receptor pathway, including POMC/PCSK1, LEPR, NCOA1(SRC1), and SH2B1. This research is significant as it targets a niche patient population with limited treatment options.

Rhythm Pharmaceuticals’ RM-718 Study: A Potential Game-Changer in Obesity Treatment

Rhythm Pharmaceuticals is conducting a study titled ‘A Study of RM-718 Weekly Formulation in Healthy Subjects With Obesity and in Patients With Hypothalamic Obesity (HO).’ The study aims to evaluate the safety, tolerability, and pharmacokinetics (PK) of RM-718 in individuals with obesity and those with hypothalamic obesity. This research is significant as it explores potential treatments for obesity-related conditions, which are prevalent and challenging to manage.

Rhythm Pharmaceuticals’ Earnings Call Highlights Growth and Challenges

The recent earnings call for Rhythm Pharmaceuticals was marked by a generally positive sentiment, reflecting strong revenue growth, a successful equity raising, and significant regulatory progress. However, challenges such as increased operating expenses and uncertainties surrounding the Prader-Willi trial were also acknowledged.

Rhythm Pharmaceuticals Reports Strong Q2 2025 Growth

Rhythm Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on developing treatments for rare neuroendocrine diseases, with its lead product, IMCIVREE, targeting obesity due to genetic disorders.