Rhythm Pharmaceuticals (RYTM) Stock Forecast & Price Target

Rhythm Pharmaceuticals Inc reported a significant increase in cash reserves, ending the third quarter of 2025 with $416.1 million, up from $291 million in the previous quarter. The company anticipates positive outcomes from the Phase 3 Hypothalamic Obesity trial, which are expected to enhance the peak sales potential of its primary product, IMCIVREE, while the emerging oral drug bivamelagon is projected to provide sustained cash flows through 2040. Given the recent improvement in the competitive landscape for Prader-Willi syndrome treatments and adjustments to revenue estimates for IMCIVREE, the outlook for steady topline growth remains optimistic.

Rhythm Pharmaceuticals faces significant risks that could impair its commercial success, including the possibility of failing to gain approval for setmelanotide for additional indications beyond established deficiencies, and setbacks in developing earlier-stage candidates designed to enhance treatment options. The company reported a revenue of $51.3 million for IMCIVREE in Q3 2025, slightly below expectations and indicative of a slower-than-expected sales ramp, exacerbated by a declining proportion of younger patients in its total prescriptions. Additionally, rising operational costs, with R&D expenses exceeding consensus forecasts and SG&A expenses notably higher than estimates, coupled with unchanged guidance indicating potential long-term dilution risk, further contribute to the negative outlook on the stock.