Latest news with #RYTM
Yahoo
07-06-2025
- Business
- Yahoo
Jefferies Maintains Buy Rating on Rhythm Pharmaceuticals (RYTM), Sets $80 Price Target
In a report released on June 4, Dennis Ding from Jefferies maintained a Buy rating on Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) with a price target of $80.00. The analyst based the rating on the company's strategic developments and promising pipeline. One of the primary reasons behind the rating was the anticipated Phase II data for the oral treatment for hypothalamic obesity (HO). It is expected to deliver notable BMI reduction and has been de-risked, thereby extending the potential of the franchise beyond the current expiration dates. A scientist conducting research in a laboratory, studying a Petri dish with advanced biopharmaceuticals. The analyst stated that management is confident in the weekly subcutaneous (subQ) treatment, which closely aligns with the previously approved setmelanotide, and thus further adds to the positive outlook for Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM). According to Ding, the setmelanotide Phase II open-label trial for Prader-Willi Syndrome can also pave the way for a significant opportunity if successful, even after its previous challenges. Management is focusing on patient starts instead of the immediate revenue post-launch, and this strategy supports the long-term growth prospects, according to the analyst. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a commercial-stage biopharmaceutical company that develops and commercializes therapeutics for the treatment of rare diseases. Its product pipeline includes IMCIVREE (setmelanotide), a precision medicine that treats hyperphagia and severe obesity caused by rare melanocortin-4 receptor (MC4R) diseases. The company also has other programs, including a preclinical suite of investigational candidates to treat congenital hyperinsulinism and a clinical development program for setmelanotide in other rare MC4R pathway diseases. While we acknowledge the potential of RYTM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Yahoo
13-04-2025
- Business
- Yahoo
5 Stocks in Nasdaq ETF Fueling Index's Big Comeback Since 2008
The tech-heavy Nasdaq Composite Index saw the largest intraday swing since 2008 in the April 8 trading session. The index closed 0.1% higher yesterday after swinging from a loss of around 5.2% to a gain of 4.5% at intraday extremes, marking its largest intraday comeback since Oct. 10, 2008. Fidelity Nasdaq Composite Index ETF ONEQ, which tracks the Nasdaq Composite Index, also saw wild swings of 10% from high to low in a single day and closed 0.1% lower. While most of the stocks in the ETF portfolio have rebounded strongly, we have highlighted five that were at the forefront of the historic comeback. These are Rhythm Pharmaceuticals Inc. RYTM, Golden Ocean Group Limited GOGL, Rigetti Computing Inc. RGTI, Super Micro Computer Inc. SMCI and Garrett Motion Inc. of a 90-day pause in U.S. tariffs under Donald Trump triggered a dramatic $2.5 trillion surge in American stock markets that lasted only for seven minutes. The short-lived rally offered some relief to investors amid anxiety surrounding Trump's trade policy and the volatility of global financial markets (read: 5 Top-Ranked Stocks of Nasdaq ETF Beating the Bear Market).Additionally, bargain hunters stepped in to cash in on the beaten-down prices after the Nasdaq tumbled to a bear market. In particular, seasoned investors and institutional buyers saw an opportunity in the chaos as most of the stocks in the index traded at steep discounts, making them attractive. Notably, the 'Magnificent Seven' stocks shed $1.8 trillion in market cap last week following the April 2 tariff and high-frequency traders likely played a role as well, accelerating the upside as the index appeared to hit the bottom. Though the AI boom, which led the tech sector and the broad market rally over the past year, has fizzled, increased tech spending will continue to drive growth despite the economic slowdown and higher inflation. U.S. tech spending is expected to grow 6.1% to reach a staggering $2.7 trillion, buoyed by the Fed rate cut. Per the latest data, traders ramped up the bets on the number of Fed cuts this year to five and pulled forward their estimate of when those cuts could begin, starting at the next meeting on May 6-7. The odds of a May cut are now above 50%. Lower interest rates generally lead to reduced borrowing costs that help businesses expand their operations more easily and increase profitability. This, in turn, minimizes the impact of tariffs on the economy and provides a boost to the stock market. Fidelity Nasdaq Composite Index ETF holds a broad basket of 906 stocks with heavy concentration on the top 10 holdings. It has AUM of $6.1 billion. Information technology is the top sector with a 48% share, followed by consumer services (15.5%), consumer discretionary (15%) and healthcare (6.3%). ONEQ charges 21 bps in annual fees and trades in an average daily volume of 398,000 shares. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Rhythm Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of peptide therapeutics for the treatment of rare genetic deficiencies, which result in life-threatening metabolic disorders. The stock soared 17.1% in yesterday's trading session and has an estimated earnings growth rate of 41.9% for this year. Rhythm Pharmaceuticals has a Zacks Rank #3 (Hold) and a Growth Score of B. Golden Ocean is a shipping company engaged in the transportation of dry bulk cargoes. It operates primarily in the Capesize and Panamax markets. The stock jumped 11.9% yesterday and has an estimated earnings growth rate of 4.9% for this year. Golden Ocean has a Zacks Rank #2 (Buy) and a Value Score of B. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks is a pioneer in full-stack quantum-classical computing. It has an estimated earnings growth rate of 44.1% for this year and gained about 11% yesterday. RGTI has a Zacks Rank # Micro designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. The stock has gained 10.7% and has an estimated earnings growth rate of 15.4% for fiscal year (ending June 2025). It has a Zacks Rank # Motion provides transportation systems, offering turbochargers, engines, diesel tanks and other related parts. The stock was up about 10% yesterday and delivered an earnings surprise of 26.18% in the last four quarters. It has a Zacks Rank #2 and a Growth Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Rhythm Pharmaceuticals, Inc. (RYTM) : Free Stock Analysis Report Garrett Motion Inc. (GTX) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-02-2025
- Business
- Yahoo
We Think Rhythm Pharmaceuticals (NASDAQ:RYTM) Can Afford To Drive Business Growth
We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. Given this risk, we thought we'd take a look at whether Rhythm Pharmaceuticals (NASDAQ:RYTM) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'. View our latest analysis for Rhythm Pharmaceuticals A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Rhythm Pharmaceuticals last reported its December 2024 balance sheet in February 2025, it had zero debt and cash worth US$321m. Importantly, its cash burn was US$165m over the trailing twelve months. That means it had a cash runway of around 23 months as of December 2024. Importantly, analysts think that Rhythm Pharmaceuticals will reach cashflow breakeven in 3 years. That means unless the company reduces its cash burn quickly, it may well look to raise more cash. The image below shows how its cash balance has been changing over the last few years. At first glance it's a bit worrying to see that Rhythm Pharmaceuticals actually boosted its cash burn by 16%, year on year. Having said that, it's revenue is up a very solid 68% in the last year, so there's plenty of reason to believe in the growth story. The company needs to keep up that growth, if it is to really please shareholders. It seems to be growing nicely. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. While Rhythm Pharmaceuticals seems to be in a fairly good position, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations. Since it has a market capitalisation of US$3.1b, Rhythm Pharmaceuticals' US$165m in cash burn equates to about 5.3% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. As you can probably tell by now, we're not too worried about Rhythm Pharmaceuticals' cash burn. In particular, we think its revenue growth stands out as evidence that the company is well on top of its spending. While its increasing cash burn wasn't great, the other factors mentioned in this article more than make up for weakness on that measure. Shareholders can take heart from the fact that analysts are forecasting it will reach breakeven. Looking at all the measures in this article, together, we're not worried about its rate of cash burn; the company seems well on top of its medium-term spending needs. We think it's very important to consider the cash burn for loss making companies, but other considerations such as the amount the CEO is paid can also enhance your understanding of the business. You can click here to see what Rhythm Pharmaceuticals' CEO gets paid each year. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Rhythm Pharmaceuticals Inc (RYTM) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and ...
Cash and Cash Equivalents: $320.6 million at the end of 2024. Revenue: $41.8 million in Q4 2024; $130.1 million for the full year 2024. Cost of Sales: $3.8 million in Q4 2024, approximately 9% of net product revenue. R&D Expenses: $41.2 million for Q4 2024, up from $29.9 million in Q4 2023. SG&A Expenses: $38.1 million for Q4 2024, compared to $32.4 million in Q4 2023. Net Loss per Share: $0.72 for Q4 2024, including $0.02 per share from accrued dividends on convertible preferred stock. Operating Expenses: Totaled $382.3 million for 2024, including $39.7 million in stock-based compensation. Non-GAAP Operating Expenses: $250.2 million for 2024, at the low end of the $250 million to $270 million guidance range. US Revenue Contribution: $31.7 million in Q4 2024, accounting for 76% of quarterly revenue. Gross Margin: Gross-to-net in the US remained consistent at about 85% for Q3 and Q4 2024. Warning! GuruFocus has detected 3 Warning Signs with RYTM. Release Date: February 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) is well-capitalized, having raised $75 million, extending its cash run rate into 2027. The company completed enrollment in its phase 2 daily oral Maigon study, indicating progress in its pipeline. There is significant opportunity in genetically driven impairments to the MC4R pathway, with potential for long-term growth. The company received FDA approval for a label expansion to include younger patients, enhancing its market reach. International expansion is progressing well, with access achieved in over 15 countries outside the US. The company faces challenges in accurately predicting the efficacy outcomes of its trials, particularly in the phase 3 HO trial. There is uncertainty regarding the uptake and market penetration of new therapies, especially in comparison to existing treatments like GLP-1s. The company anticipates increased R&D and SG&A expenses in 2025, which could impact profitability. There are complexities in diagnosing and treating congenital hypothalamic obesity, which may affect trial outcomes and market potential. The company must navigate reimbursement challenges and prior authorization processes, which could slow down market adoption. Q: Will the sad mad portion of the RM 718 study be shared separately, or will it be included in the second half 2025 update with part C? Also, what is the expected mix of adults and pediatric patients in the phase 3 trial on HO? A: We don't have specific plans to present the sad mad portion separately; it will likely be included with the Part C update. Regarding the phase 3 trial, the regulators wanted more adults, so we focused on that, achieving about a 50/50 split between adults and pediatric patients. The Japanese cohort will have a similar mix. Q: How do you see the uptake in the HO patient population compared to BBS or genetic populations? Could the pre-existing obesity set point impact the phase 3 HO trial results? A: The HO patient population is more identifiable and concentrated in endocrinology, leading to potentially faster uptake than BBS. Regarding the pre-existing obesity set point, our drug aims to restore normal physiology, potentially bringing patients back to their pre-injury state, but it is not a treatment for general obesity. Q: What does management consider a successful outcome for the Se Melannoide phase 3 trial in terms of weight loss? Also, is there a possibility of a modestly down quarter due to inventory destocking? A: We would be disappointed with less than a 10% weight loss, though the regulatory hurdle is 5%. We anticipate inventory destocking in Q1, which could impact quarter-over-quarter results. Q: Can you discuss the prevalence of HO beyond cranial pharyngioma data and any ongoing work to understand other etiologies, including congenital forms? A: We are gaining confidence in our prevalence estimates, which may be conservative. Other tumors contribute significantly to the population, and we are exploring congenital syndromes where obesity may be related to hypothalamic impairment. Q: What weight loss would doctors like to see to use Se Melannoide in HO patients? Would you consider a cash raise after the HO data set reads out? A: Doctors are interested in consistent efficacy rather than specific weight loss percentages. Regarding a cash raise, we have extended our runway to avoid needing a raise immediately after the data readout, but future raises will depend on program success. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
