Rhythm Pharmaceuticals (RYTM +12.1%) has recorded the biggest intraday gain since November 2020 after Ladenburg Thalmann upgraded the commercial-stage biopharmaceutical company to Buy from Neutral.
The firm highlighted the prospects of Imcivree, an FDA-approved therapy marketed by the company for chronic weight management in adults and children with obesity due to certain deficiencies.
Noting that Rhythm (NASDAQ:RYTM) shares have lost more than 77% over the past 12 months, underperforming the Nasdaq Biotechnology Index, the analysts expect the company shares to recover with label expansion for Imcivree in BBS.
In September, Rhythm (RYTM) announced the completion of its supplemental New Drug Application ((sNDA)) to the FDA for approval of Imcivree to treat obesity and control of hunger in those with BBS or Alström syndrome.
Even as “the limited clinical trial evidence in 2022 continues to” impact the outlook, the firm notes that the company is trading at a market cap comparable to its 2024 revenue estimates and hopes investors will begin to accumulate its shares at the current levels. The price target set to $15 per share implies a premium of ~126% to the last close.
The marketing application for Imcivree in BBS or Alström syndrome is currently under the FDA’s priority review with a target action date of Mar. 16.