Rhythm Pharmaceuticals (RYTM) PT Raised to $135 at Citizens JMP

Citizens JMP analyst Jonathan Wolleben raised the price target on Rhythm Pharmaceuticals (NASDAQ: RYTM) to $135.00 (from $130.00) while maintaining a Market Outperform rating.

The analyst commented, "We like that demand for Imcivree continues to grow in its approved indications, as RYTM works to expand its pipeline opportunities. RYTM remains on track to submit regulatory applications for setmelanotide for HO in the U.S. and EU this quarter, and we are confident in approval (POS 90%) given the strength of the Phase 3 TRANSCEND data. RYTM estimates that there are ~5K-10K HO patients in the U.S. and is gaining confidence in the higher end of the range, which represents a TAM of ~$2B-$4B based on setmelanotide’s WAC. RYTM also estimates a similar prevalence in Europe (3.5-10K) although the TAM will be smaller given typical EU pricing adjustments. Last quarter, RYTM presented the first clinical data for its follow-on MC4R agonist bivamelagon in HO patients showing the once-daily oral drug has comparable efficacy to setmelanotide and a better hyperpigmentation profile with the pivotal program expected to start 2026. There is a host of upcoming readouts we think could drive shares higher. Investors are likely to shift their focus to setmelanotide’s open-label Phase 2 readout in Prader-Willi syndrome (PWS) before YE25 given Soleno’s (SLNO, NC) recent approval and ~ $4B valuation as the best comp. We’re also looking forward to data from the Phase 3 EMANATE trial of setmelanotide in 1Q26, Phase 3 Japanese data for setmelanotide in 1Q26 and Phase 1 data for weekly subcutaneous MC4R agonist RM-718 in HO patients likely in 1H26. Recall, RYTM plans on developing both bivamelagon and RM-718 for HO and given the differentiated profiles to accommodate patients with different needs."

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