Needham & Company Reiterates Buy Rating on Rhythm Pharmaceuticals (RYTM) Following Positive Data

Needham & Company analyst Alan Carr reiterated a Buy rating and $42.00 price target on Rhythm Pharmaceuticals (NASDAQ: RYTM) after the company announced that both Phase 3 trials of setmelanotide in POMC and LEPR Deficiency met all primary and secondary endpoints.

The analyst notes "average weight loss in the 1yr trials was 25.4% and 12.5%, w/ >10% weight loss responder rates of 8/10 and 5/11, respectively. Impact on hunger score was also impressive. There was a notable rebound in weight and hunger score during 4wk withdrawal period in both trials, further confirmation of drug activity. Safety profile appears consistent w/ prior trials and acceptable for target indications. Mgmt reiterated guidance for NDA submission YE19 and we assume approval in 3Q20."

"Given consistency across Phase 2 and Phase 3 trials in these pt populations, we remain comfortable w/ label expansion to other rare genetic obesity disorders, including Bardet-Biedl and Alstrom Syndrome, which are now in testing in a separate Phase 3 trial," he commented.

For an analyst ratings summary and ratings history on Rhythm Pharmaceuticals click here. For more ratings news on Rhythm Pharmaceuticals click here.

Shares of Rhythm Pharmaceuticals closed at $19.00 yesterday.

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