Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Rhythm Pharmaceuticals, boosting the price target to $110.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors that highlight the potential of Rhythm Pharmaceuticals’ setmelanotide in treating hypothalamic obesity (HO). The recent positive results from the pivotal Phase 3 TRANSCEND trial have reinforced confidence in the drug’s efficacy, showing a significant reduction in body mass index among patients. The anticipated expansion of the IMCIVREE label into the HO patient population, coupled with the upcoming PDUFA approval decision, strengthens the commercial outlook for setmelanotide.
Additionally, the global market opportunity for treating acquired HO is substantial, with a significant number of patients in the U.S., Europe, and Japan. The drug’s compelling profile has resonated well with endocrinologists, who have expressed a strong willingness to prescribe it. Rhythm Pharmaceuticals’ strategic commercial launch plan, backed by their experience with Bardet-Biedl Syndrome, positions them well for success. The company’s potential for sustainable profitability by 2027 further supports the Buy rating, as it continues to advance its clinical-stage programs.
In another report released on September 25, Guggenheim also reiterated a Buy rating on the stock with a $120.00 price target.