Rhythm Pharmaceuticals (RYTM) AI Stock Analysis

• Market Cap: $5.80B
• Dividend Yield: N/A
• Average Volume (3M): 831.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 48.88%
• EPS Growth: 39.30%
• Country: US
• Employees: 283
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.81
• Shares Outstanding: 65,680,300
• 10 Day Avg. Volume: 527,402
• 30 Day Avg. Volume: 831,084
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 23.99
• Enterprise Value/Gross Profit: 26.81
• Enterprise Value/Ebitda: -21.93
• 1Y Price Target: $104.38
• Price Target Upside: 18.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $94.00 ▲(6.46%Upside)

Rhythm Pharmaceuticals' stock score is bolstered by strong technical momentum and positive corporate events, such as successful trial results. However, financial performance issues due to ongoing unprofitability and negative valuation metrics weigh significantly on the overall score.

Positive Factors

Clinical Data

Positive Ph3 data from the TRANSCEND study of setmelanotide in hypothalamic obesity confirm robust reductions in body mass index, showing rapid BMI reductions starting at week 4 that notably deepen over time.

Market Penetration

Rapid uptake is expected for setmelanotide, reaching approximately 51% penetration by the third year of launch, which is about three years sooner than currently modeled.

Physician Endorsement

54% of surveyed doctors would prescribe setmelanotide as first-line therapy.

Negative Factors

Competitive Landscape

The availability of oral and/or once-weekly options is expected to drive increased use compared to setmelanotide's once-daily frequency.

Market Competition

The lower incidence of hyperpigmentation with biva’ could expand the market.

Regulatory Challenges

Setmelanotide is being considered the new standard of care for certain conditions, even though it is not yet approved.

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 potent melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is also developing setmelanotide, which is in Phase II clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, Smith-Magenis syndrome obesity, POMC epigenetic disorders, and other MC4R disorders. Rhythm Pharmaceuticals, Inc. has a collaborative research agreement with the Clinical Registry Investigating Bardet-Biedl Syndrome. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Rhythm Pharmaceuticals generates revenue primarily through the commercialization of its approved therapeutic product, IMCIVREE. The company earns money by selling this medication to healthcare providers, hospitals, and specialty pharmacies, which then distribute it to patients diagnosed with specific genetic conditions related to obesity. The pricing strategy and reimbursement from insurance companies and government programs also play a critical role in the company's revenue model. Additionally, Rhythm may enter into partnerships or licensing agreements with other pharmaceutical companies to expand the reach and development of its products, potentially leading to milestone payments and royalties.

Rhythm Pharmaceuticals Financial Statement Overview

Summary

Rhythm Pharmaceuticals demonstrates strong revenue growth, but remains unprofitable with negative profit margins and ongoing cash flow issues. Although the balance sheet shows minimal leverage, persistent losses highlight financial risks.

Income Statement

Rhythm Pharmaceuticals has shown significant revenue growth from $3.15 million in 2021 to $136.86 million in TTM (Trailing-Twelve-Months) 2025. However, the company remains unprofitable with negative EBIT and net income, leading to negative profit margins. The gross profit margin is relatively high at 89.5% for TTM 2025, indicating efficient cost management in production. Despite this, the negative net and EBIT margins highlight ongoing challenges in achieving operational profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.025 in TTM 2025, reflecting minimal leverage. However, return on equity (ROE) is negative due to continued net losses. The equity ratio stands at 42.2%, indicating a reasonable proportion of assets financed by equity. Although liquidity appears stable with significant cash and short-term investments, the low equity base and ongoing losses present financial risks.

Cash Flow

Operating cash flow remains negative, indicating that the company is not generating sufficient cash from its core business operations. Free cash flow improved from negative $151.44 million in 2021 to negative $73.49 million in TTM 2025, suggesting better cash management. However, the operating cash flow to net income ratio is negative, emphasizing ongoing operational cash challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.13M	77.43M	23.64M	3.15M	0.00
Gross Profit	116.76M	68.13M	21.50M	2.56M	-690.00K
EBITDA	-238.09M	-168.46M	-174.51M	-68.45M	-135.88M
Net Income	-260.60M	-184.68M	-183.08M	-68.01M	-130.73M
Balance Sheet
Total Assets	392.27M	332.75M	382.48M	329.52M	187.07M
Cash, Cash Equivalents and Short-Term Investments	320.56M	275.85M	333.29M	294.86M	172.79M
Total Debt	3.94M	1.26M	1.94M	2.55M	3.09M
Total Liabilities	227.72M	162.99M	118.22M	45.37M	20.55M
Stockholders Equity	21.73M	169.76M	264.26M	284.15M	166.53M
Cash Flow
Free Cash Flow	-113.88M	-136.20M	-177.71M	-151.44M	-122.19M
Operating Cash Flow	-113.88M	-136.16M	-173.43M	-146.00M	-121.98M
Investing Cash Flow	-48.17M	-5.67M	28.03M	-62.16M	158.53M
Financing Cash Flow	191.24M	74.37M	213.83M	166.48M	2.01M

Rhythm Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.30
• 50DMA: Positive
• 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 Positive. The current price of 88.3 is above the 20-day moving average (MA) of 85.68, above the 50-day MA of 72.33, and above the 200-day MA of 60.65, indicating a bullish trend. The MACD of 4.35 indicates Positive momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYTM.

Rhythm Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYTM	62 Neutral	$5.80B	―	-418.97%	―	48.88%	39.30%
SWTX	61 Neutral	$3.54B	―	-51.57%	―	730.42%	31.63%
AKRO	60 Neutral	$3.86B	―	-27.92%	―	―	-31.37%
PTGX	60 Neutral	$3.34B	70.76	8.99%	―	-34.02%	-65.83%
CRSP	58 Neutral	$4.84B	―	-19.71%	―	-86.13%	-67.29%
RNA	58 Neutral	$4.33B	―	-34.19%	―	-17.87%	-1.89%
Sector *	51 Neutral	$7.37B	0.33	-68.94%	2.37%	16.27%	0.42%

Rhythm Pharmaceuticals Corporate Events

Rhythm Pharmaceuticals Announces Stock Offering Agreement

On July 9, 2025, Rhythm Pharmaceuticals entered into an underwriting agreement with Morgan Stanley & Co. LLC and BofA Securities, Inc. for the sale of 2,058,824 shares of its common stock at $85.00 per share, with an option for underwriters to purchase an additional 308,823 shares. The offering is expected to close on July 11, 2025, generating approximately $188.7 million in net proceeds, which the company plans to use for clinical development, commercialization activities for IMCIVREE, and general corporate purposes. This financial move is anticipated to support the company’s operations for at least the next 24 months.

The most recent analyst rating on (RYTM) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.

Rhythm Pharmaceuticals Reports Positive Phase 2 Trial Results

On July 9, 2025, Rhythm Pharmaceuticals announced positive topline results from its Phase 2 trial of bivamelagon, an investigational oral MC4R agonist, in patients with acquired hypothalamic obesity. The trial demonstrated statistically significant and clinically meaningful reductions in BMI over 14 weeks, with bivamelagon achieving reductions comparable to those seen with setmelanotide in similar patient populations. The trial also showed meaningful reductions in hunger scores and consistent safety and tolerability results. Rhythm plans to engage with regulatory authorities to advance bivamelagon to a Phase 3 trial, aiming to establish it as a treatment for acquired hypothalamic obesity.

The most recent analyst rating on (RYTM) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.

Rhythm Pharmaceuticals Updates Exculpation Provision in Charter

On June 24, 2025, Rhythm Pharmaceuticals held its Annual Meeting of Stockholders, where stockholders approved an amendment to the company’s Certificate of Incorporation. This amendment updates the exculpation provision for certain officers, aligning with recent changes in Delaware’s General Corporation Law. The amendment was filed and became effective on June 25, 2025. Additionally, Jennifer Good and Edward T. Mathers were elected as Class II Directors, and other proposals, including the ratification of Ernst & Young LLP as the company’s accounting firm, were approved.

The most recent analyst rating on (RYTM) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.