Rhythm Pharmaceuticals (RYTM) Stock Forecast & Price Target

Rhythm Pharmaceuticals is experiencing steady revenue growth, with IMCIVREE (setmelanotide) generating approximately $57 million in worldwide revenue for fourth quarter 2025, driven by a 10% increase in patients on reimbursed therapy, indicating strong underlying demand. The anticipated positive outcomes from the Phase 3 Hypothalamic Obesity trial and the launch of the oral bivamelagon are expected to enhance the company's sales potential significantly, projecting an increase in 2026 revenue estimates to $293 million. The favorable safety profile of setmelanotide, particularly in contrast to existing therapies with contraindications, further strengthens its market position and predicted success in treating patients with Prader-Willi Syndrome (PWS).

Rhythm Pharmaceuticals faces several significant risks that contribute to a negative outlook for its stock, including potential challenges in obtaining regulatory approval for setmelanotide to address additional indications beyond POMC/PCSK1/LEPR (PPL) deficiency and Bardet-Biedl syndrome (BBS). Additionally, the company may encounter setbacks with earlier-stage candidates aimed at enhancing the therapeutic scope of its melanocortin-4 receptor agonists, as well as a slower-than-anticipated sales ramp for its primary product, IMCIVREE. Furthermore, the commercial viability of its therapies could be compromised if the anticipated number of treatable patients is lower than expected, coupled with the risk of long-term dilution, which could adversely affect overall financial stability.