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what it is
Rhythm sells a rare-disease obesity drug and is trying to turn one approved medicine into a bigger franchise.
how it gets paid
Last year Rhythm Pharma made $190M in revenue. Bardet-Biedl syndrome - U.S. was the main engine at $95M, or 50% of sales.
why it's growing
Trailing-twelve-month revenue grew ~45.8% last year. The latest quarter can print a much higher vs. prior year % (~158%) on a smaller prior-year quarter— different periods.
what just happened
Latest quarter revenue ~$133M, but EPS was still ~-$2.38— growth did not mean profitability.
At a glance
B+ balance sheet — decent shape, but not bulletproof
70/100 earnings predictability — reasonably predictable
-$4.34 fy2024 eps est
~$190M FY revenue (actuals beat older ~$130M est)
operating margin deeply negative — still investing through losses
xvary composite: 52/100 — below average
What they do
Rhythm sells a rare-disease obesity drug and is trying to turn one approved medicine into a bigger franchise.
Rhythm's edge is focus. It built IMCIVREE around MC4R-pathway diseases, a tiny market bigger drugmakers usually ignore. You are paying for that head start: revenue reached $190M, up 45.8% vs. prior year, even with just 283 employees.
How they make money
$190M
annual revenue · their business grew +45.8% last year
Bardet-Biedl syndrome - U.S.
$95M
Bardet-Biedl syndrome - ex U.S.
$38M
POMC/LEPR/PCSK1 deficiencies - U.S.
$30M
POMC/LEPR/PCSK1 deficiencies - ex U.S.
$17M
Named-patient and other markets
$10M
The products that matter
rare obesity treatment
IMCIVREE (setmelanotide)
$190M · +45.8% growth
it generated all $190M of current revenue, up 45.8% from last year. if this drug expands, the story expands. if it doesn't, the concentration risk stays at 100%.
100% of revenue
Key numbers
-$4.34
fy2024 eps est
~$190M
revenue (actual FY)
n/a
trailing p/e
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $254M (4% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RYTM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarter revenue ~$133M, but EPS was still ~-$2.38— sales growth did not mean profitability.
Revenue rose 158% vs. prior year in the latest quarter, versus 45.8% growth for trailing 12-month revenue. The quiet part out loud: investors got a bigger top line, but not a profitable model.
$133M
quarter revenue
-$2.38
quarter EPS
+158%
revenue growth
the number that mattered
$133M matters because Rhythm is still being valued on revenue acceleration, not earnings, and the latest quarter showed that acceleration clearly.
source: SEC filing, latest quarter
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What could go wrong
The top risk here is the March 20, 2026 FDA decision on IMCIVREE's label expansion. This is a one-product business, so the regulatory call is not one variable among many. It is the variable.
med
FDA rejection for the broader label
The current setup assumes the supplemental application can expand use beyond today's tiny patient population. If the FDA says no on March 20, 2026, the market has to reprice the entire growth story.
Impact: the stock is valued at roughly $6B on $190M of revenue and 20.1x forward sales. That premium only holds if expansion stays alive.
med
commercial costs outrun revenue growth
Rhythm beat the Q4 loss estimate, but it still reported a $0.73 per-share loss. Launch costs and market development spending make sense only if revenue keeps climbing fast enough to absorb them.
Impact: the $389M cash balance is the buffer. If losses stay heavy and the label does not expand, that cushion starts doing a lot more work.
med
single-product concentration
All $190M of revenue comes from IMCIVREE. That makes the model easy to understand and fragile at the same time. Any supply, safety, reimbursement, or uptake issue lands directly on the whole income statement.
Impact: 100% of current revenue is exposed to one asset. Diversification is not coming to save you here.
One drug produces the full $190M revenue base, while a $389M cash balance and a March 20, 2026 catalyst carry the rest of the thesis. That is a clear setup. It is not a forgiving one.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
March 20, 2026 PDUFA date
This is the calendar item. Approval supports the multiple. Rejection breaks the near-term bull case.
revenue
whether $190M keeps compounding
Revenue grew 45.8% last year. If that pace fades before the label expands, the valuation looks much less comfortable.
cash
how hard the $389M cushion gets used
Loss-making biotech stories can survive with cash. They struggle when cash starts shrinking before the commercial engine proves itself.
stock setup
price versus the $46–$122 range
At $112.52, the stock already sits near the top of its 52-week range. Expectations are not hiding.
Analyst rankings
earnings predictability
70 / 100
in human-speak, analysts think the numbers are more forecastable than an early-stage biotech, but still very capable of surprising you.
balance sheet
B+
Good enough to fund the story for now. Not strong enough to make the March 20 decision optional.
beta
1.4
This tends to move more than the market. If the tape gets ugly, RYTM usually does not become calm by accident.
risk rank
3
Safer than 50% of stocks, which is a polite way of saying the market still sees material event risk.
source: institutional data
Institutional activity
institutional ownership data for RYTM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$113
current price
n/a
target midpoint · n/a from current
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