Rhythm Pharmaceuticals (RYTM) Stock Forecast & Price Target

Rhythm Pharmaceuticals concluded the third quarter of 2025 with a robust cash position of $416.1 million, an increase from $291 million at the second quarter's end, providing a strong financial foundation. The company anticipates that positive results from the Phase 3 Hypothalamic Obesity trial and the launch of the next-generation drug oral bivamelagon will enhance the peak sales potential of IMCIVREE, thereby supporting durable cash flows through at least 2040. Additionally, competitive dynamics have improved following the recent failure of a key competitor's product, positioning setmelanotide favorably in the market, leading to increased revenue estimates and heightened expectations for growth.

Rhythm Pharmaceuticals has faced numerous challenges that contribute to a negative outlook on its stock, including the potential inability to secure regulatory approval for setmelanotide to treat additional indications, which may hinder future revenue growth. The company reported a 3Q25 revenue of $51.3 million for IMCIVREE, which was below expectations and accompanied by a concerning decline in the percentage of patients under 18 years old receiving prescriptions, indicating issues with market penetration and patient access. Additionally, the company's increased operating expenses, evidenced by higher GAAP R&D and SG&A costs than consensus estimates, further strain its financial position and raise concerns about sustainable profitability.