Rhythm Pharma rises as rare obesity disorder drug meets main goal of late-stage study

Rhythm Pharmaceuticals

07/04/2025 12:57

** Shares of drugmaker Rhythm Pharmaceuticals RYTM.O rise 7% to $50.22 premarket

** RYTM says its experimental drug to treat a rare obesity disorder met the main goal of a late-stage study

** The therapy setmelanotide showed a significant reduction in body mass index in both adult and pediatric patients compared to placebo

** Hypothalamic obesity refers to excess weight gain that may follow from an injury to hypothalamus, a brain region with many important functions

     ** Rhythm estimates there are 5,000 to 10,000 people living with hypothalamic obesity in the U.S.

** The late-stage study data is "above expectations" and RYTM shares to trade "considerably higher", says brokerage Stifel

** Setmelanotide is currently approved under the brand name Imcivree to treat genetic obesity in adults and children aged two years and older

** As of last close, shares down 16.1% YTD

(Reporting by Siddhi Mahatole)

((siddhi.mahatole@thomsonreuters.com))