Rhythm Pharmaceuticals (RYTM) Stock Forecast & Price Target

Rhythm Pharmaceuticals Inc. has demonstrated a significant increase in cash reserves, ending Q3 2025 with $416.1 million, which enhances its financial stability and growth potential. The anticipated positive outcomes from the Phase 3 Hypothalamic Obesity trial are expected to boost the peak sales potential of IMCIVREE, while the introduction of the next-generation oral drug bivamelagon may ensure sustained revenue streams through 2040. Furthermore, the recent reduction in competitive pressure in the Prader-Willi Syndrome market, coupled with favorable safety and tolerability profiles for setmelanotide, supports an optimistic outlook for the company's financial performance and revenue growth trajectory moving forward.

Rhythm Pharmaceuticals faces multiple risks that contribute to a negative outlook, primarily tied to the potential inability to secure regulatory approval for expanded uses of setmelanotide, which could hinder its market potential. Recent revenue figures for IMCIVREE fell short of expectations, reflecting a slower-than-anticipated sales ramp, and indications of declining market penetration among younger patient demographics could further impact future earnings. Additionally, rising operational costs, with both research and development and selling, general and administrative expenses exceeding consensus estimates, signal ongoing financial pressures that may challenge the company's profitability moving forward.