Leerink Partners Starts Rhythm Pharmaceuticals (RYTM) at Outperform

Leerink Partners analyst Faisal Khurshid initiates coverage on Rhythm Pharmaceuticals (NASDAQ: RYTM) with a Outperform rating and a price target of $88.00.

The analyst comments "Bottom Line: We view RYTM as well-positioned to deliver meaningful revenue expansion through a multi-pronged strategy anchored in rare genetic obesity and driven by a key near-term launch plus long-term lifecycle planning. The base business continues to grow off currently approved rare genetic obesity indications (POMC/PCSK1, LEPR, and Bardet-Biedl syndrome [BBS]) for lead MC4R agonist Imcivree (setmelanotide), with global rollout still underway. Our 2025 Imcivree est. is $177M. The next leg of growth is launch in acquired hypothalamic obesity (aHO), which is a more common and commercially impactful disease setting where RYTM has already toplined positive Ph 3 data. We see the aHO launch as the clearest growth driver in 2026+. Beyond Imcivree, RYTM has successor MC4R programs in development with optimized clinical profiles. These are important longer-term growth drivers and may enable RYTM to keep the groove going with a multiasset franchise akin to VRTX (MP, Risinger) in CF or GILD (OP, Graybosch) in HIV. Ph 2 data for oral bivamelagon expected this weekend at ENDO will further clarify this next leg of the story. Initiate Outperform; PT $88."

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 $65.77 yesterday.

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