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Upturn AI Summary - About
Rhythm Pharmaceuticals Inc(RYTM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for RYTM
09/25/2026: RYTM (3-star) is currently NOT-A-BUY. Pass it for now.
Rhythm Pharmaceuticals is a commercial-stage biotechnology company that has carved out a unique position by treating rare genetic forms of obesity with its lead product, IMCIVREE. The company's primary strength lies in its specialized expertise in the MC4R pathway, providing a tailored treatment where larger obesity therapies may not apply. Its main investment story centers on capturing niche markets and successfully expanding labels into broader patient groups like those with hypothalamic injury. However, the company faces significant competition from well-capitalized pharmaceutical giants and relies heavily on a single product. It is best suited for growth-oriented investors who can tolerate the high volatility and clinical risk inherent in the biotech sector.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company offers high growth potential linked to its unique position in the rare disease/obesity market. |
| Momentum investor | Strong fit while signal remains positive | Momentum investors may find opportunity during periods of positive clinical or regulatory news flow. |
| Value investor | Weak fit | As a loss-making biotech firm, it does not fit traditional value metrics. |
| Dividend investor | Weak fit | The company does not pay dividends and focuses on growth. |
| Low-risk investor | Weak fit | Biotech stocks are inherently volatile and carry high clinical and regulatory risks. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | Clinical-stage and early commercial biotech stocks often experience sharp price movements based on trial results. |
| Valuation risk | Medium / high | Valuations are highly dependent on future commercial success and clinical trial outcomes. |
| Competition risk (obesity therapeutics) | High | Large-cap firms are investing heavily in obesity pipelines, which could overshadow niche therapies. |
| Business quality | Medium | The company has one approved product, which creates concentration risk. |
| Dividend income | Low / none | No income is currently returned to shareholders. |
| Execution risk | Medium / high | Successfully expanding indications and market reach is critical for long-term viability. |
Price Behavior

Rolling Over
The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 90.73% | Avg. Invested days 45 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.77B USD | Price to earnings Ratio - | 1Y Target Price 138.59 |
Price to earnings Ratio - | 1Y Target Price 138.59 | ||
Volume (30-day avg) 562.7K shares | Beta 1.97 | 52 Weeks Range 74.50 - 122.20 | Updated Date 09/27/2026 |
52 Weeks Range 74.50 - 122.20 | Updated Date 09/27/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -3.12 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Pharmaceutical Sales | Revenue generated from the sale of IMCIVREE for rare genetic obesity. | The company makes money by selling a specialized drug to a very specific patient population. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE - | Forward PE 526.32 | Enterprise Value 6.55B | Price to Sales(TTM) 28.21 |
Enterprise Value 6.55B | Price to Sales(TTM) 28.21 | ||
Enterprise Value to Revenue 27.31 | Enterprise Value to EBITDA -12.65 | Shares Outstanding 68.59M | Shares Floating 56.04M |
Shares Outstanding 68.59M | Shares Floating 56.04M | ||
Percent Insiders 0.7 | Percent Institutions 114.86 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Rhythm Pharmaceuticals Inc
Exchange NASDAQ | Headquarters Boston, MA, United States | ||
IPO Launch date 2017-10-05 | Chairman, President & CEO Dr. David P. Meeker M.D. | ||
Sector Healthcare | Industry Biotechnology | Full time employees 414 | Website https://rhythmtx.com |
Full time employees 414 | Website https://rhythmtx.com | ||
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases in the United States and internationally. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, Bardet-Biedl and Alström syndrome, Prader-Willi syndrome, and hypothalamic obesity. It is in Phase 3 clinical trials for treating acquired hypothalamic obesity, congenital hypothalamic obesity, pro-opiomelanocortin (POMC) and LEPR insufficiency obesities, SRC1 deficiency obesity, and SH2B1 deficiency obesity; and in phase 2 clinical trails for the treatment of Prader-Willi syndrome and MC4R deficiency. The company is also developing bivamelagon, an investigational oral small molecule MC4R agonist that is in phase 2 clinical trial for the treatment of MC4R pathway diseases; and RM-718, a next generation MC4R peptide agonist that is in phase 1 clinical trial for the treatment of hypothalamic obesity. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

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