Analyst Whitney Ijem of Canaccord Genuity maintained a Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report), retaining the price target of $92.00.
Whitney Ijem has given his Buy rating due to a combination of factors that highlight the potential of Rhythm Pharmaceuticals’ lead product, setmelanotide. The recent Phase 3 data for setmelanotide in treating acquired hypothalamic obesity (HO) has shown promising results, particularly in terms of significant BMI reduction and consistent weight loss among patients. Dr. Sharon Wardlaw, a key opinion leader, expressed increased optimism about setmelanotide’s efficacy, noting a 19.8% placebo-adjusted BMI reduction and a substantial portion of patients achieving notable weight loss.
Despite some concerns regarding gastrointestinal side effects and their potential impact on other medications, the overall positive outcomes from the clinical trials bolster confidence in setmelanotide’s therapeutic potential. The ability of setmelanotide to address a significant unmet need in obesity treatment, coupled with the encouraging clinical data, supports the Buy rating. Whitney Ijem’s analysis reflects a belief in the drug’s market potential and the company’s strategic positioning in the field of obesity research.
According to TipRanks, Ijem is an analyst with an average return of -9.1% and a 38.61% success rate. Ijem covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Rhythm Pharmaceuticals, and Vertex Pharmaceuticals.
In another report released on April 9, Bank of America Securities also reiterated a Buy rating on the stock with a $68.00 price target.