Rhythm Pharmaceuticals Inc logo

Rhythm Pharmaceuticals Inc(RYTM)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
3-STAR RATING
PASS
LAST CLOSE
$98.66
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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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 styleFitWhy
Growth investorStrong fitThe company offers high growth potential linked to its unique position in the rare disease/obesity market.
Momentum investorStrong fit while signal remains positiveMomentum investors may find opportunity during periods of positive clinical or regulatory news flow.
Value investorWeak fitAs a loss-making biotech firm, it does not fit traditional value metrics.
Dividend investorWeak fitThe company does not pay dividends and focuses on growth.
Low-risk investorWeak fitBiotech stocks are inherently volatile and carry high clinical and regulatory risks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighClinical-stage and early commercial biotech stocks often experience sharp price movements based on trial results.
Valuation riskMedium / highValuations are highly dependent on future commercial success and clinical trial outcomes.
Competition risk (obesity therapeutics)HighLarge-cap firms are investing heavily in obesity pipelines, which could overshadow niche therapies.
Business qualityMediumThe company has one approved product, which creates concentration risk.
Dividend incomeLow / noneNo income is currently returned to shareholders.
Execution riskMedium / highSuccessfully expanding indications and market reach is critical for long-term viability.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

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

Moderately Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 4.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RYTM receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, soft quantitative characteristics, and weak price momentum.

Company Fundamentals

★★★★★
RYTM has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+24.6%) and strong revenue growth (+45.8%) are partially offset by soft cash generation (FCF margin -61.5%), soft profitability (net margin -103.6%), very low insider ownership of 0.70%.

Financial Health Rating

★★★★★
RYTM's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 75.2%). Cash strength is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is RYTM's strongest growth driver at +45.8% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+24.6%, solid) is also solid, while free-cash-flow growth (-2.4%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 114.9% and approximately 81.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.70%, which materially reduces the ownership score.

Top 5 Institutional Investors

RA Capital Management, LLC 9.68%
BlackRock Inc 9.06%
Baker Bros Advisors LP 8.14%
PRIMECAP Management Company 4.60%
Vanguard Portfolio Management, LLC 4.42%

Unit Economics (Per $1K Revenue)

★★★★★
RYTM generates approximately $897 of gross profit, $-1,012 of operating income, and $-615 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -0.25% (Tax Credit)

Quantitative Style Profile

★★★★★
RYTM has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

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 areaWhat it includesRetail investor read
Pharmaceutical SalesRevenue 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

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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

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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
Full time employees 414

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.