Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) recently saw its Chief Human Resources Officer, Pamela Cramer, execute a series of stock transactions, including the sale of 9,375 shares for approximately $585,940, according to an SEC filing. These sales, executed on November 6 and 7 at prices ranging from $60 to $65 per share, occurred alongside the exercising of stock options to acquire the same number of shares at $19.02 per share. These transactions were part of a pre-established Rule 10b5-1 trading plan adopted in May 2024. Following these transactions, Cramer directly holds 13,500 shares. The activity comes as Rhythm Pharmaceuticals reports positive financial results and advances its clinical programs.
Financial Performance and Clinical Advancements
Rhythm Pharmaceuticals reported a strong third quarter in 2024, marked by a 48% year-over-year increase in global net revenue, reaching $33.3 million. This growth was primarily fueled by increased sales of IMCIVREE (setmelanotide). The company has also revised its 2024 operating expense guidance to $245-$255 million and reported $298.4 million in cash reserves, projecting sufficient funds to support operations until 2026. The U.S. market contributed $23.3 million, representing 70% of total sales, while international revenue grew to $10 million, a 35% increase from the previous quarter.
The company is actively progressing its clinical programs. Top-line data from a Phase III trial evaluating a potential treatment for acquired hypothalamic obesity is expected in the first half of 2025. Rhythm anticipates completing enrollment in several clinical trials by the end of the year and initiating dosing for new indications in early 2025. Enrollment completion is also expected in early 2025 for a Phase II trial of bivamelagon and a Phase I trial of RM-718.
Market Position and Future Outlook
Rhythm Pharmaceuticals currently has a market capitalization of $4.14 billion. The company's stock has demonstrated significant returns, with a 133.08% price total return over the past year and a 64.18% return over the last six months. Despite this strong performance, the stock is trading near its 52-week high, and the Relative Strength Index (RSI) suggests it may be in overbought territory.
While the company is not currently profitable, with an operating income margin of -235.95% over the last twelve months, it boasts impressive gross profit margins, potentially indicating efficient core operations. The company's efforts to expand access to treatments, enhance patient engagement, and navigate trial recruitment and market entry are ongoing. European revenue contributions are expected to increase in 2025, although growth rates may vary.
