Rhythm Pharmaceuticals (RYTM) has received a new Buy rating, initiated by Morgan Stanley analyst, Michael Ulz.
Michael Ulz has given his Buy rating due to a combination of factors that suggest a promising outlook for Rhythm Pharmaceuticals. One of the key drivers is the anticipated positive results from the Phase 3 study of setmelanotide in hypothalamic obesity, expected in the second quarter of 2025. This condition, characterized by rapid weight gain and insatiable hunger, currently lacks approved therapies, and setmelanotide’s previous studies have shown significant reductions in BMI, indicating its potential effectiveness.
Additionally, the market opportunity for setmelanotide in hypothalamic obesity is substantial, with an estimated 6,000 patients in the US alone and a peak sales potential of approximately $760 million. The company’s existing product, Imcivree, has already demonstrated strong sales growth, particularly in treating Bardet-Biedl syndrome, and there is potential for further expansion with next-generation MC4R agonists. These factors collectively contribute to the optimistic projection for Rhythm Pharmaceuticals’ future performance.
According to TipRanks, Ulz is an analyst with an average return of -5.1% and a 35.04% success rate. Ulz covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Sarepta Therapeutics, and Viking Therapeutics.
In another report released yesterday, JMP Securities also reiterated a Buy rating on the stock with a $81.00 price target.