Rhythm Pharmaceuticals Q1 2025 Earnings: IMCIVREE Sales Reach $37.7M, Inventory Impact Affects Revenue, Cash on Hand Reaches $314.5M

Canaccord has increased its price target for Rhythm Pharmaceuticals (RYTM) to $105, maintaining its Buy rating on the stock. The company reported a strong first quarter with global sales of IMCIVREE reaching $37.7 million, a 45% increase from Q1 2024. Rhythm remains on track for a Q3 filing for their phase 3 trial results and has sufficient cash on hand to cover planned operations into 2027.

Canaccord Genuity has increased its price target for Rhythm Pharmaceuticals (RYTM) to $105, maintaining its Buy rating on the stock. This adjustment follows insights gained at the Endocrine Society's Annual Meeting, where obesity was a central topic, alongside upcoming developments in maintaining healthy lean muscle mass. Dr. Ashley Shoemaker highlighted the value of genetic testing for children, drawing significant attention to Rhythm's testing program during the event [1].

The company reported a strong first quarter with global sales of IMCIVREE reaching $37.7 million, a 45% increase from Q1 2024. Rhythm remains on track for a Q3 filing for their phase 3 trial results and has sufficient cash on hand to cover planned operations into 2027. Additionally, the company's average brokerage recommendation is currently 1.6, indicating an "Outperform" status [1].

Based on the one-year price targets offered by 14 analysts, the average target price for Rhythm Pharmaceuticals Inc (RYTM) is $103.64, with a high estimate of $130.00 and a low estimate of $80.00. The average target implies an upside of 14.30% from the current price of $90.68 [1].

Leerink Partners also raised its price target on Rhythm Pharmaceuticals (NASDAQ:RYTM) to $102.00 from $88.00, maintaining an Outperform rating following positive Phase 2 trial results. The company, currently valued at $5.6 billion, has seen its stock surge to $88.98, trading near its 52-week high with impressive revenue growth of 49% over the last twelve months [2].

The price target increase comes after Rhythm disclosed Phase 2 data for bivamelagon in acquired hypothalamic obesity (aHO), which Leerink described as "close to a best-case scenario." The stock jumped more than 30% on the news [2].

Stifel raised its price target for Rhythm Pharmaceuticals to $123, citing positive clinical data for bivamelagon and its potential to extend the company’s MC4R franchise beyond 2040. Similarly, BofA Securities increased its price target to $95 following favorable Phase 2 trial results for bivamelagon, noting its comparable efficacy to existing treatments with a more convenient dosing schedule [2].

Rhythm Pharmaceuticals intends to seek regulatory guidance for advancing to Phase 3 trials, with plans to refine the drug’s formulation to improve tolerability.

References:
[1] https://www.gurufocus.com/news/2987080/canaccord-boosts-price-target-for-rhythm-pharmaceuticals-rytm-to-105-rytm-stock-news
[2] https://uk.investing.com/news/analyst-ratings/rhythm-pharmaceuticals-stock-soars-as-leerink-raises-price-target-on-positive-trial-data-93CH-4163069