The initial phase II data in patients with hypothalamic obesity (HO) has transformed the opportunity for Rhythm Pharmaceuticals Inc’s (NASDAQ: RYTM) Imcivree, according to Goldman Sachs (NYSE:GS).
The Rhythm Pharmaceuticals Analyst: Corinne Jenkins upgraded Rhythm Pharmaceuticals from Neutral to Buy and raised the price target from $6 to $28.
The Rhythm Pharmaceuticals Takeaways: The Phase II data for Imcivree suggests “a high probability of clinical success” in hypothalamic obesity, which represents “a meaningfully higher peak sales opportunity as compared to other indications where Imcivree is in development, Jenkins said in an upgrade note.
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“Acknowledging that the stock is +320% since the data were released, reflecting the de-risking of HO and investors’ positive view on the indication, we still see additional upside to the stock from here, albeit the path may not be linear,” the analyst said.
“We look for RYTM to prioritize Ph3 studies of Imcivree in this population (planned initiation: 1H23) and anticipate a relatively small, placebo-controlled study based on the effect size observed in the Ph2. Pending a positive Ph3 trial, we estimate peak risk-adjusted sales in HO of $1.6B, adjusted by a 75% PoS,” she further mentioned.
RYTM Price Action: Shares of Rhythm Pharmaceuticals were trading 8.94% higher at $22.05 late Monday morning.
Latest Ratings for RYTM
| Mar 2022 | Canaccord Genuity | Maintains | Buy | |
| Mar 2022 | Needham | Maintains | Buy | |
| Feb 2022 | Needham | Maintains | Buy |
View the Latest Analyst Ratings
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