Rhythm Pharmaceuticals: A Hidden Growth Stock Soaring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy RYTM?
Source: Fool
- Significant Market Potential: Rhythm Pharmaceuticals has a market cap of $6.8 billion, and despite its relatively small size, its stock has outperformed both Alphabet and Nvidia over the past 12 months, indicating strong market performance and investor confidence.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the growing market demand in the rare genetic obesity treatment sector.
- Promising Clinical Trials: Rhythm expects to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, alongside another candidate, RM-718, in Phase 1 testing, showcasing the diversity of its pipeline and potential for market expansion.
- FDA Approval Catalyst: The anticipated FDA approval for Imcivree in treating acquired hypothalamic obesity on March 20, 2026, could potentially benefit over 36,000 patients across the U.S., Europe, and Japan, significantly enhancing the company's market outlook and profitability prospects.
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Analyst Views on RYTM
Wall Street analysts forecast RYTM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RYTM is 140.62 USD with a low forecast of 123.00 USD and a high forecast of 167.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 103.870
Low
123.00
Averages
140.62
High
167.00
Current: 103.870
Low
123.00
Averages
140.62
High
167.00
About RYTM
Rhythm Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. The Company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its lead asset, IMCIVREE, as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. IMCIVREE is approved by the Food and Drug Administration (FDA) for chronic weight management in adult and pediatric patients six years of age and older with monogenic or syndromic obesity due to proopiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1 (PCSK1) or leptin receptor (LEPR) deficiency as determined by an FDA-approved test demonstrating variants in POMC, PCSK1, or LEPR genes that are interpreted as pathogenic, likely pathogenic, or of uncertain significance (VUS). In addition to setmelanotide, it has two earlier-stage investigational MC4R agonists in clinical development, RM-718, designed for weekly administration, and bivamelagon, an oral small molecule.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rhythm Pharmaceuticals Stock Soars with Significant Growth Potential
- Significant Market Potential: Rhythm Pharmaceuticals, with a market cap of only $6.8 billion, has seen its stock price soar over the past 12 months, surpassing both Alphabet and Nvidia, indicating strong market performance and growing investor interest.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the rapid growth in demand for treatments in the rare disease sector.
- Clinical Trial Advancements: Rhythm plans to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, while also conducting Phase 1 testing for another MC4R agonist, RM-718, showcasing the diversity and potential of its R&D pipeline.
- FDA Approval Catalyst: The FDA is expected to make a decision on Imcivree's application for treating acquired hypothalamic obesity on March 20, 2026, which could significantly enhance Rhythm's market opportunities, impacting treatment options for approximately 20,000 patients in the U.S.
See More
Rhythm Pharmaceuticals: A Hidden Growth Stock Soaring
- Significant Market Potential: Rhythm Pharmaceuticals has a market cap of $6.8 billion, and despite its relatively small size, its stock has outperformed both Alphabet and Nvidia over the past 12 months, indicating strong market performance and investor confidence.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the growing market demand in the rare genetic obesity treatment sector.
- Promising Clinical Trials: Rhythm expects to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, alongside another candidate, RM-718, in Phase 1 testing, showcasing the diversity of its pipeline and potential for market expansion.
- FDA Approval Catalyst: The anticipated FDA approval for Imcivree in treating acquired hypothalamic obesity on March 20, 2026, could potentially benefit over 36,000 patients across the U.S., Europe, and Japan, significantly enhancing the company's market outlook and profitability prospects.
See More
Rhythm Pharmaceuticals Reports $194M in 2025 IMCIVREE Sales
- Significant Sales Growth: Rhythm Pharmaceuticals anticipates approximately $194 million in net product revenues from global sales of IMCIVREE® in 2025, representing a 50% increase from 2024, indicating strong market demand in the rare neuroendocrine disease sector.
- Quarterly Performance Boost: The estimated sales for Q4 2025 are around $57 million, reflecting an 11% increase from Q3 2025, showcasing sustained demand and patient acceptance for IMCIVREE in both U.S. and international markets.
- FDA Approval Progress: The company plans to submit a supplemental NDA for IMCIVREE for acquired hypothalamic obesity to the FDA by March 20, 2026, which, if approved, will further expand its market reach and address patient needs.
- Clinical Trial Data Release: Topline data from a 12-patient Japanese cohort in the Phase 3 trial is expected to be announced in Q1 2026, providing crucial support for the global promotion of IMCIVREE.
See More
Rhythm Pharma Hits the Right Note with Promising Early Results from PWS Trial
Stock Performance: Rhythm Pharmaceuticals Inc. (RYTM) shares rose 14.24% to $119.69 following positive preliminary results from its Phase 2 trial of setmelanotide for Prader-Willi syndrome (PWS).
Trial Results: In the ongoing 52-week trial, setmelanotide showed potential benefits, with 6 of 8 patients achieving BMI reductions at Month 3 and 3 of 5 patients at Month 6, alongside significant reductions in hyperphagia.
Future Plans: The company plans to advance setmelanotide into a Phase 3 registrational trial for PWS, contingent on the successful completion of the current Phase 2 trial.
Additional Research: Rhythm has initiated a Part D arm in a Phase 1 trial for MC4R agonist RM-718, aiming to enroll up to 20 PWS patients, with the first screening expected in December 2025.
See More
Rhythm Pharma to Share Initial Phase 2 Results of Setmelanotide for Prader-Willi Syndrome Today
Upcoming Data Release: Rhythm Pharmaceuticals will present preliminary data from its Phase 2 trial of Setmelanotide for Prader-Willi syndrome on December 11, 2025, addressing a rare genetic disorder with limited treatment options.
Setmelanotide Overview: The drug, already approved for obesity treatment in certain genetic conditions, is also under review for acquired hypothalamic obesity, with an FDA decision expected on March 20, 2025.
Pipeline Development: Rhythm is advancing additional MC4R agonists, including Bivamelagon and RM-718, with ongoing trials and plans for a pivotal phase III trial for Bivamelagon in 2026.
Financial Performance: The company reported third-quarter 2025 net product revenue of $51.3 million, with strong growth in U.S. sales, and ended September 30 with $416.1 million in cash and investments, supporting its development programs.
See More
Rhythm Pharmaceuticals to Disclose Preliminary Data from PWS Trial on December 11
- Clinical Trial Update: Rhythm Pharmaceuticals will host a conference call on December 11 at 8:00 a.m. ET to disclose preliminary data from its exploratory Phase 2 trial of setmelanotide in patients with Prader-Willi syndrome, which is expected to provide significant support for the company's market positioning in rare neuroendocrine diseases.
- Investor Engagement: The conference will be available via webcast, requiring participants to register ten minutes in advance, demonstrating the company's commitment to transparency and investor communication aimed at boosting market confidence.
- Product Background: Setmelanotide is Rhythm's lead asset, already FDA-approved for obesity treatment associated with Bardet-Biedl syndrome, and the upcoming data is anticipated to further propel its application in other rare diseases.
- Future Outlook: Rhythm is advancing the clinical development of setmelanotide in other rare diseases, and the data release is expected to lay the groundwork for future regulatory submissions and market expansion.
See More
Rhythm Pharmaceuticals Stock Soars with Significant Growth Potential
- Significant Market Potential: Rhythm Pharmaceuticals, with a market cap of only $6.8 billion, has seen its stock price soar over the past 12 months, surpassing both Alphabet and Nvidia, indicating strong market performance and growing investor interest.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the rapid growth in demand for treatments in the rare disease sector.
- Clinical Trial Advancements: Rhythm plans to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, while also conducting Phase 1 testing for another MC4R agonist, RM-718, showcasing the diversity and potential of its R&D pipeline.
- FDA Approval Catalyst: The FDA is expected to make a decision on Imcivree's application for treating acquired hypothalamic obesity on March 20, 2026, which could significantly enhance Rhythm's market opportunities, impacting treatment options for approximately 20,000 patients in the U.S.
See More
Rhythm Pharmaceuticals: A Hidden Growth Stock Soaring
- Significant Market Potential: Rhythm Pharmaceuticals has a market cap of $6.8 billion, and despite its relatively small size, its stock has outperformed both Alphabet and Nvidia over the past 12 months, indicating strong market performance and investor confidence.
- Notable Sales Growth: The company's sole approved drug, Imcivree, achieved sales of $194 million in 2025, reflecting a year-over-year increase of approximately 50%, highlighting the growing market demand in the rare genetic obesity treatment sector.
- Promising Clinical Trials: Rhythm expects to advance its oral MC4R agonist, bivamelagon, into Phase 3 clinical testing in 2026, alongside another candidate, RM-718, in Phase 1 testing, showcasing the diversity of its pipeline and potential for market expansion.
- FDA Approval Catalyst: The anticipated FDA approval for Imcivree in treating acquired hypothalamic obesity on March 20, 2026, could potentially benefit over 36,000 patients across the U.S., Europe, and Japan, significantly enhancing the company's market outlook and profitability prospects.
See More
Rhythm Pharmaceuticals Reports $194M in 2025 IMCIVREE Sales
- Significant Sales Growth: Rhythm Pharmaceuticals anticipates approximately $194 million in net product revenues from global sales of IMCIVREE® in 2025, representing a 50% increase from 2024, indicating strong market demand in the rare neuroendocrine disease sector.
- Quarterly Performance Boost: The estimated sales for Q4 2025 are around $57 million, reflecting an 11% increase from Q3 2025, showcasing sustained demand and patient acceptance for IMCIVREE in both U.S. and international markets.
- FDA Approval Progress: The company plans to submit a supplemental NDA for IMCIVREE for acquired hypothalamic obesity to the FDA by March 20, 2026, which, if approved, will further expand its market reach and address patient needs.
- Clinical Trial Data Release: Topline data from a 12-patient Japanese cohort in the Phase 3 trial is expected to be announced in Q1 2026, providing crucial support for the global promotion of IMCIVREE.
See More
Rhythm Pharma Hits the Right Note with Promising Early Results from PWS Trial
Stock Performance: Rhythm Pharmaceuticals Inc. (RYTM) shares rose 14.24% to $119.69 following positive preliminary results from its Phase 2 trial of setmelanotide for Prader-Willi syndrome (PWS).
Trial Results: In the ongoing 52-week trial, setmelanotide showed potential benefits, with 6 of 8 patients achieving BMI reductions at Month 3 and 3 of 5 patients at Month 6, alongside significant reductions in hyperphagia.
Future Plans: The company plans to advance setmelanotide into a Phase 3 registrational trial for PWS, contingent on the successful completion of the current Phase 2 trial.
Additional Research: Rhythm has initiated a Part D arm in a Phase 1 trial for MC4R agonist RM-718, aiming to enroll up to 20 PWS patients, with the first screening expected in December 2025.
See More
Rhythm Pharma to Share Initial Phase 2 Results of Setmelanotide for Prader-Willi Syndrome Today
Upcoming Data Release: Rhythm Pharmaceuticals will present preliminary data from its Phase 2 trial of Setmelanotide for Prader-Willi syndrome on December 11, 2025, addressing a rare genetic disorder with limited treatment options.
Setmelanotide Overview: The drug, already approved for obesity treatment in certain genetic conditions, is also under review for acquired hypothalamic obesity, with an FDA decision expected on March 20, 2025.
Pipeline Development: Rhythm is advancing additional MC4R agonists, including Bivamelagon and RM-718, with ongoing trials and plans for a pivotal phase III trial for Bivamelagon in 2026.
Financial Performance: The company reported third-quarter 2025 net product revenue of $51.3 million, with strong growth in U.S. sales, and ended September 30 with $416.1 million in cash and investments, supporting its development programs.
See More
Rhythm Pharmaceuticals to Disclose Preliminary Data from PWS Trial on December 11
- Clinical Trial Update: Rhythm Pharmaceuticals will host a conference call on December 11 at 8:00 a.m. ET to disclose preliminary data from its exploratory Phase 2 trial of setmelanotide in patients with Prader-Willi syndrome, which is expected to provide significant support for the company's market positioning in rare neuroendocrine diseases.
- Investor Engagement: The conference will be available via webcast, requiring participants to register ten minutes in advance, demonstrating the company's commitment to transparency and investor communication aimed at boosting market confidence.
- Product Background: Setmelanotide is Rhythm's lead asset, already FDA-approved for obesity treatment associated with Bardet-Biedl syndrome, and the upcoming data is anticipated to further propel its application in other rare diseases.
- Future Outlook: Rhythm is advancing the clinical development of setmelanotide in other rare diseases, and the data release is expected to lay the groundwork for future regulatory submissions and market expansion.
See More
