Rhythm Pharma Q3 net loss narrower than estimated on IMCIVREE demand
Overview
Biopharmaceutical firm's Q3 product revenue rose 29% sequentially, driven by IMCIVREE sales
Q3 net loss narrowed and beat analyst expectations
Company secured $750 mln term loan facility and amended LG Chem licensing agreement
Outlook
Company expects 2026 non-GAAP operating expenses of $360 mln to $380 mln
Company expects 2026 R&D expenses of $165 mln to $175 mln and SG&A of $195 mln to $205 mln
Rhythm expects cash and investments to fund operations for at least 24 months
Result Drivers
U.S. DEMAND - Co said sequential Q3 revenue growth was driven primarily by increased patient demand for IMCIVREE in acquired hypothalamic obesity and continued growth in Bardet-Biedl syndrome
GLOBAL PATIENT GROWTH - Co reported a 20% increase in reimbursed patients on IMCIVREE globally compared to previous quarter
JAPAN LAUNCH - Commercial launch of IMCIVREE in Japan for acquired hypothalamic obesity underway, expanding international reach
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Product Revenue | $92.13 mln | ||
Q3 Net Loss | Beat | $41.37 mln | $50.07 mln (15 Analysts) |
Q3 Operating Income | -$39.27 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Rhythm Pharmaceuticals, Inc. is $143.00, about 53% above its November 2 closing price of $93.44
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)