Rhythm Pharmaceuticals (NASDAQ:RYTM) Releases Earnings Results, Beats Expectations By $0.10 EPS

Rhythm Pharmaceuticals (NASDAQ:RYTM) posted its quarterly earnings data on Tuesday. The company reported ($0.61) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.71) by $0.10, Zacks reports. The company had revenue of $92.13 million during the quarter, compared to analysts’ expectations of $85.56 million. Rhythm Pharmaceuticals had a negative return on equity of 159.87% and a negative net margin of 85.59%. Rhythm Pharmaceuticals’s revenue was up 79.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.82) EPS.

Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:

• Strong U.S. acquired hypothalamic obesity launch: Q3 global IMCIVREE revenue rose 29% sequentially to $92.1 million, with U.S. revenue of $67.5 million. Rhythm reported more than 700 acquired HO patient start forms, over 500 prescribers, and continued demand growth entering Q4.
• Encouraging market access: Approximately 60% of Medicaid-covered lives and 75% of commercial-covered lives were covered by acquired HO policies at quarter-end, while more than 80% of reimbursement approvals were obtained within 60 days of receiving a start form.
• International expansion is underway: IMCIVREE launched in Japan on October 14 at a price of approximately $2,200 per vial, with more than 1,000 potentially eligible patients identified. Rhythm expects Japan to become its second-largest market, although two-week prescription limits may constrain first-year revenue; European launches are expected to begin in 2027.
• Pipeline expansion: Rhythm plans to initiate a phase III bivamelagon study in hypothalamic obesity in early 2027 and pursue a six-month phase III Prader-Willi syndrome study focused on hyperphagia. Management also expects to develop next-generation MC4R therapies and potential combination approaches.
• Higher financing obligations: Rhythm amended its LG Chem agreement to reduce potential royalties to a 1% flat rate, but committed to $350 million in payments over four years and took an initial $250 million term loan at SOFR plus 4.6%. The company ended Q3 with about $321 million in cash and investments, excluding these transaction-related cash flows.

Rhythm Pharmaceuticals Stock Performance

RYTM traded down $9.89 during trading on Tuesday, hitting $83.55. The stock had a trading volume of 3,096,719 shares, compared to its average volume of 762,220. The stock has a 50 day simple moving average of $96.85 and a two-hundred day simple moving average of $97.29. Rhythm Pharmaceuticals has a twelve month low of $74.50 and a twelve month high of $122.20. The company has a market capitalization of $5.73 billion, a PE ratio of -26.83 and a beta of 2.01.

Insider Buying and Selling at Rhythm Pharmaceuticals

In other news, CEO David Meeker sold 50,000 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the transaction, the chief executive officer directly owned 239,258 shares of the company’s stock, valued at approximately $24,564,618.86. This represents a 17.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Yann Mazabraud sold 57,000 shares of the stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $116.15, for a total value of $6,620,550.00. Following the sale, the executive vice president owned 55,655 shares of the company’s stock, valued at approximately $6,464,328.25. This represents a 50.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 258,450 shares of company stock valued at $28,796,497. Corporate insiders own 5.90% of the company’s stock.

Analyst Upgrades and Downgrades

RYTM has been the topic of several recent research reports. William Blair initiated coverage on Rhythm Pharmaceuticals in a research report on Friday, October 16th. They set an “outperform” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research report on Thursday, October 15th. Citigroup restated a “market outperform” rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, August 5th. JPMorgan Chase & Co. dropped their price objective on Rhythm Pharmaceuticals from $146.00 to $145.00 and set an “overweight” rating on the stock in a research report on Thursday, October 15th. Finally, Citizens Jmp raised their price objective on Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a “market outperform” rating in a research report on Wednesday, August 5th. Eighteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $142.50.

Rhythm Pharmaceuticals Company Profile

Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare genetic diseases of obesity and related metabolic disorders. The company’s work is based on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.

Rhythm’s principal product is IMCIVREE (setmelanotide), a targeted therapy designed to restore impaired MC4R pathway signaling. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 6 years old with obesity caused by certain genetic deficiencies, including POMC, PCSK1, or LEPR deficiency, as well as Bardet-Biedl syndrome.