Rhythm Pharmaceuticals Reclaims China Rights for IMCIVREE®

In the ever-evolving landscape of biopharmaceuticals, Rhythm Pharmaceuticals has made a strategic move that could reshape its global market position. The company has reacquired the rights to IMCIVREE® (setmelanotide) in China, Hong Kong, and Macau, terminating its 2021 licensing agreement with RareStone Group Ltd. This decision aligns with Rhythm's broader strategy to develop setmelanotide and next-generation MC4R agonists on a global scale, potentially accelerating the availability of this life-changing treatment to a larger patient population.



The reacquisition of these rights is a significant milestone for Rhythm Pharmaceuticals. By owning the global franchise for setmelanotide, the company gains full control over the development, marketing, and distribution of this key asset. This move allows Rhythm to leverage its own expertise and resources in the Chinese market, rather than relying on a third-party partner. As David Meeker, MD, Chairman, CEO, and President of Rhythm, stated, "Our global trial of setmelanotide in patients with acquired hypothalamic obesity – which is on track for topline data readout in the second quarter of 2025 – is being conducted in North America, Europe, and Japan, and this reacquisition of rights for China, Hong Kong, and Macau means Rhythm now owns the global franchise."

The financial implications of this decision are also noteworthy. Rhythm has agreed to repay $6.3 million in cash to RareStone and return all shares of RareStone that were acquired under the original agreement for no additional consideration. This repayment represents a significant financial outlay for the company, which will need to allocate these funds from its existing resources or potentially seek additional financing to cover this expense. The return of these shares also indicates that Rhythm is forgoing any potential future gains from the investment in RareStone, further impacting its financial outlook.

Despite these financial considerations, the strategic advantages of reacquiring the rights to IMCIVREE® (setmelanotide) in China are substantial. The company can now include this significant market in its global clinical development efforts, potentially accelerating the availability of setmelanotide to a larger patient population. This move also enhances Rhythm's reputation and credibility in the biopharmaceutical industry, positioning it as a leader in the treatment of rare genetic diseases of obesity.

In conclusion, Rhythm Pharmaceuticals' reacquisition of the rights to IMCIVREE® (setmelanotide) in China is a strategic move that could significantly impact its global market position. By owning the global franchise for setmelanotide, the company gains full control over the development, marketing, and distribution of this key asset, potentially accelerating the availability of this life-changing treatment to a larger patient population. While the financial implications of this decision are noteworthy, the strategic advantages of reacquiring these rights are substantial, positioning Rhythm as a leader in the treatment of rare genetic diseases of obesity.