Rhythm Pharmaceuticals Raises $175M in Upsized Public Offering

Rhythm Pharmaceuticals has priced an upsized public offering of 2,058,824 shares of common stock at $85.00 per share, raising approximately $175 million in gross proceeds. The offering is being led by Morgan Stanley, BofA Securities, Stifel, and Wells Fargo Securities, and is expected to close on July 11, 2025.

Rhythm Pharmaceuticals (NASDAQ: RYTM), a global biopharmaceutical company focused on rare neuroendocrine diseases, has priced an upsized public offering of 2,058,824 shares of common stock at $85.00 per share. The offering is expected to generate approximately $175 million in gross proceeds before expenses. This capital raise is being led by Morgan Stanley, BofA Securities, Stifel, and Wells Fargo Securities, with the offering expected to close on July 11, 2025 [1].

The company has granted underwriters a 30-day option to purchase up to 308,823 additional shares at the public offering price. This offering is part of Rhythm's ongoing efforts to commercialize its approved therapies for rare neuroendocrine diseases, which typically require significant capital to identify small patient populations and navigate complex reimbursement landscapes [1].

The participation of major financial institutions as joint book-running managers lends credibility to this offering. The expected closing date of July 11, 2025, indicates that the transaction is moving forward quickly. While the offering is dilutive to existing shareholders, it significantly bolsters Rhythm's cash position, potentially extending its operational runway and providing flexibility to advance its commercial and development programs without near-term financing concerns [1].

The upsized nature of the offering suggests strong investor demand, which is particularly noteworthy in the current biotech funding environment. The company's strategic timing of this capital raise aligns with its commercialization efforts, highlighting the importance of substantial capital for rare disease-focused companies.

The offering is being made pursuant to a shelf registration statement on Form S-3, which became effective on March 2, 2023. The final prospectus supplement and accompanying prospectus relating to the offering will be available on the SEC’s website at www.sec.gov [1].

References:
1. [Rhythm Pharmaceuticals Prices Upsized Public Offering](https://www.stocktitan.net/news/RYTM/rhythm-pharmaceuticals-inc-announces-pricing-of-upsized-public-3b3r89yrx75c.html)