Tazeen Ahmad, an analyst from Bank of America Securities, reiterated the Buy rating on Rhythm Pharmaceuticals (RYTM – Research Report). The associated price target was raised to $73.00.
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Tazeen Ahmad’s rating is based on Rhythm Pharmaceuticals’ promising outlook, particularly regarding their drug setmelanotide. The company is preparing for an in-person meeting with the FDA to discuss the supplemental New Drug Application (sNDA) for acquired hypothalamic obesity (HO), with management expressing confidence in the drug’s approvability due to its strong clinical data. This data shows a significant reduction in BMI, distinguishing it from other treatments and indicating a strong potential for real-world application.
Additionally, despite a slight dip in first-quarter sales due to inventory dynamics, the company expects consistent growth for the rest of the year. The increase in new prescribers and the successful international launch of another product, BBS, further bolster the company’s prospects. With these factors in mind, Ahmad has reiterated a Buy rating, raising the price objective to $73, reflecting the increased contribution from the HO program.
In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $72.00 price target.
RYTM’s price has also changed slightly for the past six months – from $63.900 to $64.630, which is a 1.14% increase.