Rhythm Pharmaceuticals Inc (RYTM)
NASDAQ:RYTM
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Rhythm Pharmaceuticals
(NASDAQ:RYTM)
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Rating:52Neutral
Price Target:
$86.00
▼(-0.15% Downside)
Action:ReiteratedDate:03/27/26
RYTM’s score is driven primarily by improving fundamentals (rapid revenue growth and strong gross margins) and low leverage, supported by a constructive earnings outlook with multiple catalysts and a solid cash runway. The rating is held back by persistent net losses and cash burn, weak technicals (downtrend/negative momentum), and limited support from valuation metrics given negative earnings.
Positive Factors
High gross margins & revenue scaling
Rhythm’s commercial revenue growth from near zero to meaningful scale, combined with very high gross margins (~88–91%), indicates attractive unit economics for IMCIVREE. Durable margin structure supports long-term profitability potential as patient identification and retention increase, enabling operating leverage as volumes grow.
Negative Factors
Ongoing negative cash flow
Despite top-line growth, Rhythm continues to consume significant cash with material negative operating and free cash flows. Persistent cash burn forces reliance on existing runway or future financing, which can dilute shareholders or constrain investment in commercial and clinical programs if revenue growth or reimbursement timing falters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & revenue scaling
Rhythm’s commercial revenue growth from near zero to meaningful scale, combined with very high gross margins (~88–91%), indicates attractive unit economics for IMCIVREE. Durable margin structure supports long-term profitability potential as patient identification and retention increase, enabling operating leverage as volumes grow.
Read all positive factors
Rhythm Pharmaceuticals (RYTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.88B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth54.92%
EPS Growth28.47%
CountryUS
Employees283
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.73
Shares Outstanding68,285,040
10 Day Avg. Volume950,797
30 Day Avg. Volume1,002,094
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)50.02
Price to Sales (P/S)36.66
P/FCF Ratio-59.64
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue32.01
Enterprise Value/Gross Profit35.67
Enterprise Value/Ebitda-34.88
Forecast
1Y Price Target
$137.14Price Target Upside59.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)-3.07
Revenue Forecast (FY)$288.96M
Rhythm Pharmaceuticals Business Overview & Revenue Model
Company Description
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic diseases of obesity. The company's lead product candidate is IMCIVREE, a...
How the Company Makes Money
Rhythm primarily makes money by selling IMCIVREE (setmelanotide). Revenue is generated from product sales to specialty distributors/wholesalers and other customers in the markets where IMCIVREE is commercialized; the net amount recognized is affec...
Rhythm Pharmaceuticals Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks revenue into sources such as product sales, partnerships, milestones, and royalties to show whether the company relies on a single drug, partner agreements, or recurring product income. A business skewed toward one-time milestones or a single product carries higher execution and commercialization risk, while diversified or recurring revenue points to more sustainable cash flow and clearer paths to profitability.
Breaks revenue into sources such as product sales, partnerships, milestones, and royalties to show whether the company relies on a single drug, partner agreements, or recurring product income. A business skewed toward one-time milestones or a single product carries higher execution and commercialization risk, while diversified or recurring revenue points to more sustainable cash flow and clearer paths to profitability.
Data provided by:
The Fly
The FlyRhythm Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call balanced strong commercial momentum, meaningful year-over-year revenue growth (~+50% FY), expanding international footprint, positive longer-term clinical signals (notably durable bivamelagon 40-week BMI reductions and FDA EOP2 confirmation to proceed to Phase 3), and a healthy cash runway (~$389M) against several operational and development headwinds: FDA-mandated larger/longer trials for new chemical entities (which may extend timelines and cost), inventory dynamics that may dampen near-term revenue, rising operating expenses (2026 non-GAAP OpEx guide ~+35% vs 2025), and remaining uncertainties in genetic substudies and reimbursement timing. Overall the company appears well-capitalized and advancing multiple programs and launches, but will absorb near-term expense and execution risk as it scales.Positive Updates
Strong Q4 and Full-Year Revenue Growth
Q4 2025 product revenue of $57.3M, up 12% sequentially; full-year 2025 revenue of $194.8M, approximately +50% year-over-year. Q4 net product revenues were +37% versus Q4 2024.
Negative Updates
FDA Requirement for Larger/Longer Phase 3
FDA was explicit that, for a new chemical entity (bivamelagon), a full 12-month double-blind randomized controlled trial and a larger safety database will be required—likely mirroring setmelanotide's ~142-patient phase 3—potentially extending timelines and increasing trial cost.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Revenue Growth
Q4 2025 product revenue of $57.3M, up 12% sequentially; full-year 2025 revenue of $194.8M, approximately +50% year-over-year. Q4 net product revenues were +37% versus Q4 2024.
Read all positive updates
Company Guidance
The company’s forward guidance focused on 2026 operating spend and near‑term clinical and commercial milestones: annual non‑GAAP operating expenses are guided to $385M–$415M (non‑GAAP R&D $197M–$213M; non‑GAAP SG&A $188M–$202M), a ~35% year‑over‑year increase at the midpoint (~+$104.5M) driven ~30% by next‑gen formulation/clinical supply, ~25% by U.S. commercial build for an HO launch, and ~15% by Japan build‑out; Rhythm ended 2025 with ~$389M cash and short‑term investments, sufficient to fund operations for at least 24 months. Clinical/commercial timing guidance: PDUFA for Acquired HO on March 20, 2026, top‑line Japanese HO cohort and M&A readout due in March, CHMP opinion expected in Q2 and EU approval in H2 2026, plan to complete bioequivalence/DDI/hepatic impairment work and have Phase‑3 supply by year‑end 2026 with Phase‑3 HO initiation targeted by year‑end 2026 (FDA expects a 12‑month randomized trial with patient numbers likely near the 142‑patient setmelanotide trial); PWS full 6‑month data and RM‑718 3‑month data due mid‑year; payer coverage for AHO anticipated within 3–9 months post‑approval. The call also reiterated recent financial/operational metrics: Q4 2025 IMCIVREE revenue $57.3M (U.S. $39M/68%; ex‑U.S. $18.3M/32%), FY2025 revenue $194.8M (~+50% YoY), Q4 cash used in ops ~$25M (FY $116M), Q4 R&D $42M, Q4 SG&A $57.5M, Q4 GAAP loss/share $0.73, 2025 GAAP OpEx $362.3M (non‑GAAP $295.5M), gross‑to‑net U.S. ≈84.6%, Q4 COGS 8.5% (expected 10–12% range), inventory days ~20 (vs. 10–15 norm) with ~1.7M excess vials shipped over dispensed in Q4 (vs ~3M in Q3).Rhythm Pharmaceuticals Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
72
Positive
Cash Flow
35
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 189.76M | 130.13M | 77.43M | 23.64M | 3.15M |
| Gross Profit | 170.26M | 116.76M | 68.13M | 21.50M | 2.56M |
| EBITDA | -174.12M | -238.09M | -168.46M | -174.25M | -68.45M |
| Net Income | -196.54M | -260.60M | -184.68M | -181.12M | -69.61M |
Balance Sheet | |||||
| Total Assets | 481.19M | 392.27M | 332.75M | 382.48M | 329.52M |
| Cash, Cash Equivalents and Short-Term Investments | 388.95M | 320.56M | 275.85M | 333.29M | 294.86M |
| Total Debt | 246.47M | 3.94M | 1.26M | 1.94M | 2.55M |
| Total Liabilities | 342.13M | 227.72M | 162.99M | 118.22M | 45.37M |
| Stockholders Equity | 139.07M | 164.55M | 169.76M | 264.26M | 284.15M |
Cash Flow | |||||
| Free Cash Flow | -116.63M | -113.88M | -136.20M | -177.71M | -151.44M |
| Operating Cash Flow | -115.67M | -113.88M | -136.16M | -173.43M | -146.00M |
| Investing Cash Flow | -137.15M | -48.17M | -5.67M | 28.03M | -62.16M |
| Financing Cash Flow | 217.96M | 191.24M | 74.37M | 213.83M | 166.48M |
Rhythm Pharmaceuticals Technical Analysis
Negative
86.13
Price Trends
93.66
Negative
99.83
Negative
97.48
Negative
Market Momentum
-2.16
Negative
46.89
Neutral
71.13
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 86.13 is above the 20-day moving average (MA) of 85.69, below the 50-day MA of 93.66, and below the 200-day MA of 97.48, indicating a neutral trend. The MACD of -2.16 indicates Negative momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 71.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYTM.
Rhythm Pharmaceuticals Risk Analysis
Rhythm Pharmaceuticals disclosed 72 risk factors in its most recent earnings report. Rhythm Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rhythm Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $5.53B | 9.62 | 101.12% | ― | 100.88% | ― | |
56 Neutral | $3.37B | -32.35 | -29.22% | ― | 74.91% | 31.54% | |
54 Neutral | ― | -3.29 | -32.44% | ― | 106.27% | -43.90% | |
52 Neutral | $5.88B | -35.39 | -179.05% | ― | 54.92% | 28.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $7.96B | -9.72 | 172.91% | ― | 2609.26% | -17.08% | |
46 Neutral | $9.78B | -24.72 | -165.19% | ― | ― | 18.47% |
* Healthcare Sector Average
RYTM
Rhythm Pharmaceuticals
86.13
28.30
48.94%
CYTK
Cytokinetics
64.59
26.74
70.65%
TGTX
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34.63
-1.35
-3.75%
LEGN
Legend Biotech
18.20
-13.08
-41.82%
RNA
Atrium Therapeutics, Inc.
13.72
-1.03
-6.98%
ABVX
Abivax SA Sponsored ADR
125.69
120.10
2148.48%
Rhythm Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Rhythm Pharmaceuticals Gains EMA Backing for IMCIVREE Expansion
Positive
Mar 26, 2026
On March 26, 2026, Rhythm Pharmaceuticals reported that the EMA’s Committee for Medicinal Products for Human Use issued a positive opinion backing an expansion of IMCIVREE’s marketing authorization. The proposed label would cover treat...
Business Operations and StrategyProduct-Related Announcements
Rhythm Wins FDA Nod for Hypothalamic Obesity Therapy
Positive
Mar 20, 2026
On March 19, 2026, Rhythm Pharmaceuticals reported that the U.S. Food and Drug Administration approved an expanded indication for its MC4R agonist IMCIVREE (setmelanotide) to treat acquired hypothalamic obesity in adults and children aged four and...
Business Operations and Strategy
Rhythm Pharmaceuticals Reports Mixed Phase 3 EMANATE Results
Negative
Mar 16, 2026
On March 16, 2026, Rhythm Pharmaceuticals reported topline data from EMANATE, a global Phase 3 trial of setmelanotide in four rare, genetically driven obesity subgroups, showing that none of the substudies met the pre-specified primary endpoint of...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Rhythm Highlights Positive Phase 3 Data in Hypothalamic Obesity
Positive
Mar 2, 2026
On March 1, 2026, Rhythm Pharmaceuticals reported additional 52-week data from its global Phase 3 TRANSCEND trial of setmelanotide in acquired hypothalamic obesity, expanding the pivotal dataset to 142 patients, including 12 from Japan and 10 supp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.