Rhythm Pharmaceuticals (RYTM) Is Up 11.3% After Positive Prader-Willi Data And Pipeline Expansion - Has The Bull Case Changed?

• Rhythm Pharmaceuticals recently announced positive preliminary data from an exploratory Phase 2 trial of setmelanotide in Prader-Willi syndrome, reporting reductions in BMI and hyperphagia and indicating plans to advance to a Phase 3 registrational study.
• The company is also extending its Prader-Willi program with a Phase 1, Part D study of weekly MC4R agonist RM-718, signaling a broader, multi-asset approach to this rare obesity indication.
• Next, we’ll examine how setmelanotide’s encouraging Phase 2 Prader-Willi results may reshape Rhythm Pharmaceuticals’ rare disease investment narrative.

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Rhythm Pharmaceuticals Investment Narrative Recap

To own Rhythm Pharmaceuticals, you need to believe in the long term value of IMCIVREE (setmelanotide) and its broader MC4R platform, while accepting ongoing losses and funding needs. The positive exploratory Phase 2 data in Prader Willi syndrome adds another potential rare obesity indication, but the key near term catalyst still appears to be regulatory progress in acquired hypothalamic obesity, and the biggest risk remains Rhythm’s dependence on setmelanotide amid continuing net losses.

The FDA’s extension of the IMCIVREE sNDA review for acquired hypothalamic obesity to March 20, 2026, is the announcement most closely tied to this story, because it frames how investors weigh the new Prader Willi opportunity against the timing and importance of the upcoming label expansion decision. While the agency did not ask for new safety or manufacturing data, the delay slightly shifts the catalyst calendar and keeps attention on regulatory and reimbursement execution.

Yet while the Prader Willi data broadens the narrative, investors also need to be aware that Rhythm is still loss making and may face future dilution risks...

Read the full narrative on Rhythm Pharmaceuticals (it's free!)

Rhythm Pharmaceuticals' narrative projects $742.1 million revenue and $250.7 million earnings by 2028. This requires 68.1% yearly revenue growth and a $439.1 million earnings increase from -$188.4 million today.

Uncover how Rhythm Pharmaceuticals' forecasts yield a $127.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$34 to US$249 per share, underlining how far apart individual views can sit. Against that backdrop, Rhythm’s continued operating losses and reliance on future MC4R approvals leave plenty of room for different interpretations of how today’s pipeline progress might translate into tomorrow’s business performance.

Explore 3 other fair value estimates on Rhythm Pharmaceuticals - why the stock might be worth over 2x more than the current price!

Build Your Own Rhythm Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rhythm Pharmaceuticals research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Rhythm Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rhythm Pharmaceuticals' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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