Rhythm Pharmaceuticals’ Phase 3 Shows 19.8% BMI Drop, RBC Sets $145 Target
RBC initiated coverage on Rhythm Pharmaceuticals, assigning an Outperform rating and $145 price target after Phase 3 TRANSCEND results showing 19.8% placebo-adjusted BMI reduction in hypothalamic obesity patients. Imcivree sales reached $51.3 million in Q3, with market expanding by 27,000 patients and revenue projected to exceed $2 billion by 2030.
1. RBC Initiates Coverage with Outperform Rating
RBC initiated coverage on Rhythm Pharmaceuticals and assigned an Outperform rating, backing a $145 price target based on the company’s prospects in the rare genetic obesity market following Phase 3 success.
2. TRANSCEND Phase 3 Trial Delivers BMI Reductions
In April 2025, the pivotal TRANSCEND trial met its primary endpoint, demonstrating a 19.8% placebo-adjusted reduction in BMI versus placebo in 120 adult and pediatric hypothalamic obesity patients treated with setmelanotide.
3. Imcivree Sales and Market Expansion
Imcivree third-quarter sales reached $51.3 million, and with an estimated 27,000 additional hypothalamic obesity patients beyond the current 10,000–12,000 addressable base, Rhythm sees revenue projected to exceed $2 billion by 2030.
4. Pipeline and Regulatory Updates
The FDA extended its review of the supplemental NDA for acquired hypothalamic obesity to March 2026, while Rhythm advances setmelanotide in Prader-Willi syndrome and develops next-generation assets aimed at improving tolerability and convenience.