The analyst price target for Rhythm Pharmaceuticals was revised upward by $7 to reflect increased optimism from analysts about the company's potential label expansion and expected regulatory progress for setmelanotide in hypothalamic obesity.
Analyst Commentary
Recent updates from Street research indicate a positive reassessment of Rhythm Pharmaceuticals' prospects, particularly surrounding potential regulatory approval and expanding commercial opportunities for setmelanotide in hypothalamic obesity.
Bullish Takeaways- Bullish analysts have raised their price targets, citing growing confidence in the upcoming potential label expansion for setmelanotide, with the FDA decision expected by December 20.
- Key opinion leaders consulted by analysts have demonstrated strong optimism regarding setmelanotide's effectiveness even in complex patient populations. This supports expectations for robust uptake following approval.
- Ongoing commercial success with current products and positive market feedback from events have reassured analysts of the company's readiness for launch, reinforcing near-term growth projections.
- Multiple anticipated clinical and regulatory milestones present significant catalysts. These are reflected in increased valuation outlooks and support ongoing Outperform recommendations.
What's in the News
- The FDA has accepted Rhythm Pharmaceuticals' supplemental New Drug Application (sNDA) for setmelanotide targeting acquired hypothalamic obesity. The agency has granted Priority Review status with a PDUFA date of December 20, 2025. (Key Developments)
- Setmelanotide, marketed as IMCIVREE, is already approved in the US, EU, and UK for obesity caused by Bardet-Biedl syndrome as well as POMC, PCSK1, or LEPR deficiencies. (Key Developments)
Valuation Changes
- Fair Value: decreased modestly to $117.57 from $118.36
- Discount Rate: risen slightly to 6.85% from 6.80%
- Revenue Growth: edged down to 68.19% from 68.44%
- Net Profit Margin: declined to 31.48% from 33.02%
- Future P/E: increased to 49.6x from 47.3x
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