Rhythm Pharmaceuticals Lock-Up Agreement Ends on August 9, 2025

Rhythm Pharmaceuticals' executive officers and directors have agreed to a 31-day lock-up period starting from July 9, 2025, to August 9, 2025. During this period, they will not sell or publicly disclose their intention to sell any performance stock units without the prior written consent of Morgan Stanley & Co. LLC and BofA Securities, Inc.

Rhythm Pharmaceuticals' executive officers and directors have agreed to a 31-day lock-up period, commencing on July 9, 2025, and concluding on August 9, 2025. During this period, they will not sell or publicly disclose their intention to sell any performance stock units without the prior written consent of Morgan Stanley & Co. LLC and BofA Securities, Inc. [1]

This decision comes amidst a flurry of positive analyst ratings and price target increases for the company's stock. HC Wainwright has raised its price target for Rhythm Pharmaceuticals (NASDAQ:RYTM) from $80 to $100, indicating a potential upside of 11.10% from its previous closing price. Morgan Stanley has also reissued an "overweight" rating and set a $109.00 target price on shares of Rhythm Pharmaceuticals [1].

The company's lead product candidate, IMCIVREE (setmelanotide), has shown promising results in clinical trials. In the second quarter of 2025, Rhythm Pharmaceuticals reported net product revenue from global sales of IMCIVREE of $48.5 million, an increase of 29% from the previous quarter. The company also raised approximately $189.2 million in net proceeds from an upsized public offering of common stock [2].

The lock-up period is a common practice in the biotechnology sector, designed to ensure that insiders do not sell their shares immediately after a significant event, such as a stock offering. This period allows the stock price to stabilize and prevents a sudden influx of shares from insiders that could negatively impact the market price.

Institutional investors have also shown interest in Rhythm Pharmaceuticals. Federated Hermes Inc., Driehaus Capital Management LLC, Westfield Capital Management Co. LP, Janus Henderson Group PLC, and Price T Rowe Associates Inc. MD have all increased their stakes in the company's stock [1].

Despite the positive analyst ratings and financial results, investors should remain cautious. The company's stock has a consensus rating of "Buy" and an average price target of $101.57, but top-rated analysts believe there may be better buys in the market [1].

References:
[1] https://www.marketbeat.com/instant-alerts/hc-wainwright-forecasts-strong-price-appreciation-for-rhythm-pharmaceuticals-nasdaqrytm-stock-2025-08-07/
[2] https://www.biospace.com/press-releases/rhythm-pharmaceuticals-reports-second-quarter-2025-financial-results-and-business-update