Update shared on07 Aug 2025
Fair value Increased 7.58%A lower future P/E indicates improved earnings expectations, while a higher discount rate suggests increased perceived risk, yet analysts have still raised Rhythm Pharmaceuticals’ fair value to $110.71 per share.
What's in the News
- Rhythm Pharmaceuticals presented new clinical data on bivamelagon (oral MC4R agonist) and setmelanotide (lead asset) in patients with acquired hypothalamic obesity at ENDO 2025; setmelanotide remains FDA approved for syndromic monogenic obesity due to defined genetic deficiencies.
- Positive topline results announced from Phase 2 trial of bivamelagon, showing statistically significant BMI reduction and improved hunger scores; safety profile was acceptable, with most adverse events mild; preparations underway for Phase 3 trial design discussions with regulators.
- Rhythm completed a follow-on equity offering, raising approximately $175 million through the sale of 2,058,824 shares at $85 per share.
- Stockholders approved an amendment to the company’s certificate of incorporation updating exculpation provisions for certain officers per Delaware law changes.
- Real-world data presented at European congresses demonstrated consistent improvements in BMI and hunger scores in patients with hypothalamic obesity treated with setmelanotide.
Valuation Changes
Summary of Valuation Changes for Rhythm Pharmaceuticals
- The Consensus Analyst Price Target has risen from $104.57 to $110.71.
- The Future P/E for Rhythm Pharmaceuticals has fallen from 45.52x to 42.23x.
- The Discount Rate for Rhythm Pharmaceuticals has risen from 6.40% to 6.78%.
Disclaimer
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