RYTM

Rhythm Pharmaceuticals reported a Q3 loss of $0.61 per share, beating consensus estimates of $0.68 loss, with a 10.29% earnings surprise. Revenue reached $92.13 million, surpassing estimates by 9.07% and nearly doubling year-ago revenues of $51.3 million.

However, the stock has underperformed the market, down 12.7% year-to-date versus the S&P 500's 10.2% gain. The company holds a Zacks Rank #3 (Hold) rating with mixed estimate revisions.

Rhythm Pharmaceuticals (RYTM) is expected to beat Q3 2026 earnings estimates with a positive Earnings ESP of +1.38% and Zacks Rank #3. The company is projected to report a quarterly loss of $0.68 per share (improved from $0.81 year-ago) with revenues of $84.47 million, up 64.7% year-over-year. The stock has beaten consensus EPS estimates in 3 of the last 4 quarters.

Rhythm Pharmaceuticals has been upgraded to a Zacks Rank #2 (Buy) rating, reflecting upward trends in earnings estimates over the past three months (up 8.5%). The upgrade positions the stock in the top 20% of Zacks-covered stocks, suggesting potential for near-term price appreciation driven by improving business fundamentals and institutional investor buying pressure.

Rhythm Pharmaceuticals amended its global licensing agreement with LG Chem for bivamelagon, reducing royalties from low-to-mid-single digits to 1% on MC4R agonist sales while committing to $350 million in fixed payments over four years. The company also secured a $750 million term-loan facility led by KKR's HealthCare Royalty and Blackstone to support the agreement, commercialization efforts, and pipeline development.

Rhythm Pharmaceuticals announced the commercial launch of IMCIVREE (setmelanotide) in Japan following MHLW approval and inclusion on Japan's National Health Insurance drug price list. IMCIVREE is the first approved therapy in Japan for acquired hypothalamic obesity, with an estimated patient population of 5,000-8,000 people. The approval was supported by Phase 3 TRANSCEND trial data showing an 18.8% placebo-adjusted BMI reduction.