TD Cowen has designated Rhythm Pharmaceuticals (NASDAQ: RYTM) as its top pick following a second-quarter revenue increase of 47% year-over-year to $71.3 million, surpassing both its own and consensus estimates of $67 million.
U.S. revenue rose 38% sequentially to $51 million, driven by a $14.1 million increase in core sales. Approximately half of the $11.3 million in core revenue growth stemmed from hypothalamic obesity, with the remainder attributed to Bardet-Biedl syndrome. European revenue declined 13% quarter-over-quarter to $20.3 million due to a $3.8 million Contribution M payment in France, though the number of reimbursed patients globally increased by 20%.
The company now reaches patients through 400 prescribing healthcare providers. Rhythm’s lead therapy, Imcivree, continues to show clinical progress, with its hypothalamic obesity candidate RM-718 demonstrating an 11.6% reduction in body mass index at 16 weeks in proof-of-concept data.
Looking ahead, Rhythm plans to advance an MC4R agonist into a six-month pivotal trial for Prader-Willi syndrome, with hyperphagia as the primary endpoint. TD Cowen maintained a Buy rating and set a $130 price target for the stock.
