Rhythm Pharmaceuticals upsizes public offering to $175 million at $85 per share.

Rhythm Pharmaceuticals has priced its public offering of 2,058,824 shares of common stock at $85.00 per share, raising approximately $175 million. The company also granted underwriters an option to purchase an additional 308,823 shares. The offering is expected to close on July 11, 2025.

Rhythm Pharmaceuticals (NASDAQ: RYTM), a global biopharmaceutical company focused on rare neuroendocrine diseases, has priced its public offering of 2,058,824 shares of common stock at $85.00 per share, raising approximately $175 million. The company also granted underwriters an option to purchase an additional 308,823 shares at the same price. The offering is expected to close on July 11, 2025.

The offering, managed by joint book-running managers Morgan Stanley, BofA Securities, Stifel, and Wells Fargo Securities, with lead managers Canaccord Genuity and Citizens Capital Markets, is being made pursuant to a shelf registration statement on Form S-3 that became effective on March 2, 2023. This streamlined process allows Rhythm to raise capital efficiently.

The $175 million raised from the offering will provide significant capital for the company's rare disease drug commercialization efforts. The inclusion of a 30-day option for underwriters to purchase additional shares (commonly known as a greenshoe option) is standard practice that provides flexibility to address potential oversubscription.

The pricing of the offering at $85.00 per share indicates investor confidence in Rhythm's pipeline of rare neuroendocrine disease treatments. However, the success of the offering will depend on market conditions and investor appetite for biotech stocks in the current environment. Existing shareholders should be aware that this offering will likely result in dilution of their ownership percentage.

The company has not specified the number of shares to be issued, as pricing details are typically finalized closer to the completion date. The timing of this capital raise suggests Rhythm requires additional funding to support commercialization efforts for its rare neuroendocrine disease portfolio.

Forward-looking statements, including those related to the completion, timing, and size of the offering, are subject to numerous risks and uncertainties. These include risks associated with general economic and market conditions and other important factors discussed in Rhythm's prospectus supplement related to the offering.

For more information, interested parties can contact Rhythm Pharmaceuticals' Head of Investor Relations and Corporate Communications, David Connolly, at 857-264-4280 or dconnolly@rhythmtx.com.

References:
[1] https://www.stocktitan.net/news/RYTM/rhythm-pharmaceuticals-inc-announces-proposed-public-offering-of-r73qolqa6izm.html
[2] https://www.nasdaq.com/press-release/rhythm-pharmaceuticals-inc-announces-pricing-upsized-public-offering-common-stock