RYTM Rhythm Pharmaceuticals Inc

Rhythm Pharmaceuticals (RYTM) shares dropped today as the biotech sector weakened, with major biotech ETFs down over 1%. Investors are keenly awaiting the FDA's decision on a label expansion for Rhythm's obesity drug, Imcivree, for acquired hypothalamic obesity, with a new review deadline set for March 20, 2026. The company also faces competition in the Prader-Willi syndrome landscape and is preparing for Phase 3 trials and future updates.

Rhythm Pharmaceuticals (Nasdaq: RYTM) has experienced a late-year slump due to an FDA delay in reviewing setmelanotide for acquired hypothalamic obesity, alongside a broader "risk-off" sentiment in the biotech sector. The delay, pushing the PDUFA date to March 20, 2026, has led to increased short interest and concerns over the company's high valuation. The next six months, particularly the March FDA decision and the initiation of a Phase 3 trial for its oral candidate, Bivamelagon, will be crucial for the company's future trajectory.

Rhythm Pharmaceuticals (RYTM) is showing strong growth with its drug IMCIVREE, used for rare genetic and acquired obesity disorders, and its share price has doubled over the past year. The company's future growth hinges on an upcoming FDA decision in March 2026 for hypothalamic obesity, alongside ongoing trials and label expansions. Despite current unprofitability, its strong cash position and pipeline advancements offer potential for significant upside, although investors should expect volatility and execution risks.

Harbor Capital Advisors Inc. significantly reduced its stake in Rhythm Pharmaceuticals (NASDAQ:RYTM) by 57.0% in Q3, now holding 37,205 shares valued at $3.76 million. Despite insider selling activity totaling $3.44 million by Joseph Shulman and Pamela J. Cramer, analysts maintain a "Moderate Buy" rating with a consensus target price of $126.47, following several price target increases. The company reported a Q3 EPS miss of -$0.82 against an estimate of -$0.72 but exceeded revenue expectations with $51.30 million.

HC Wainwright & Co. has reiterated its Buy recommendation for Rhythm Pharmaceuticals (NasdaqGM:RYTM), with an analyst price target suggesting a 23.46% upside. The company is projected to see a 76.54% increase in annual revenue and institutional ownership has grown by 5.04% in the last quarter, indicating bullish sentiment.

Assenagon Asset Management S.A. has reduced its stake in Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) by selling 13,870 shares, leaving the firm with 224,128 shares valued at approximately $22.64 million. This sale represents a 5.8% decrease in their holdings. The report also highlights recent insider selling with Pamela J. Cramer and Joseph Shulman selling shares worth over $1.49 million combined, and the company's recent earnings miss despite strong revenue.