Citizens JMP Reiterates Market Outperform Rating on Rhythm Pharmaceuticals (RYTM)

Citizens JMP analyst Jonathan Wolleben reiterated a Market Outperform rating and $84.00 price target on Rhythm Pharmaceuticals (NASDAQ: RYTM).

The analyst commented, “Rhythm (RYTM, MO, $84 PT) will present the first Phase 2 data for its first-in-class oral MC4R agonist bivamelagon in hypothalamic obesity (HO) as a late-breaking poster on Saturday, July 12 during the “From Biology to Behavior: Addressing the Spectrum of Obesity-Related Issues I” session (our preview here). The openlabel Phase 2 SIGNAL trial enrolled 28 HO patients aged 12 years and older that will be randomized to one of three doses daily of oral bivamelagon or placebo for 14 weeks, with change in BMI as the primary endpoint. While this will be the first readout in HO patients, we view the mechanism as largely de-risked by RYTM’s daily subcutaneous MC4R agonist setmelanotide, and we note setmelanotide and bivamelagon showed comparable preclinical weight loss and reductions in BMI in healthy subjects in Phase 1. Bivamelagon could be further differentiated by a reduced rate of hyperpigmentation, which has not popped up to date. RYTM may also have initial data from the Phase 1 cohort of HO patients for weekly subcutaneous MC4R agonist RM-718 before YE25. Not only could both (or either) candidate expand the HO opportunity due to an improved dosing regimen (vs. daily subcutaneous setmelanotide), both candidates have composition of matter IP into the 2040s (vs. 2032 for setmelanotide), which would allow RYTM to maximize the HO opportunity. Thus, RYTM has two shots on goal to extend setmelanotide’s revenue tail, and it looks like bivamelagon may be a winner.”

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 $65.44 yesterday.

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