# Rhythm Pharmaceuticals, Inc. (RYTM)

> Source: Nexqual · https://nexqual.com/RYTM · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Rhythm Pharmaceuticals, Inc. (RYTM), nexqual.com/RYTM" · informational, not investment advice.

**Price:** USD 90.9 (+2.57% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 88.62 · day 87.59–90.95 · 52w 74.5–122.2 · market cap $6.26B · NGM

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $240M, net income -$205M (-85.6% margin) (SEC filings).
- Insider open-market sales, last ~7 months: 8 Form 4 filings, $32.9M; 1 not under a Rule 10b5-1 plan ($428K); 1 by opportunistic insiders (0 outside 10b5-1 plans), 3 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.84 on a 1–5 scale) (19 analysts), mean target USD 140.29 (range 120–160).
- Total return with dividends: 1Y -16.7% vs S&P 500 +14.9%; 5Y +727.9% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD -0.74, revenue estimate $84.5M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $3.2M | $23.6M | $77.4M | $130M | $190M | $240M |
| Gross profit | $2.6M | $21.5M | $68.1M | $117M | $170M | — |
| Operating income | -$170M | -$179M | -$184M | -$266M | -$192M | -$201M |
| Net income | -$69.6M | -$181M | -$185M | -$261M | -$197M | -$205M |
| EPS (diluted) | -$1.40 | -$3.47 | -$3.20 | -$4.34 | -$3.11 | — |
| Free cash flow | -$146M | -$174M | -$136M | -$114M | -$117M | — |
| Gross margin | 81.0% | 91.0% | 88.0% | 89.7% | 89.7% | — |
| Operating margin | -5391.9% | -757.9% | -238.1% | -204.0% | -101.2% | -83.6% |
| Net margin | -2207.1% | -766.2% | -238.5% | -200.3% | -103.6% | -85.6% |
| Revenue growth | — | +649.5% | +227.6% | +68.1% | +45.8% | — |
| Cash + short-term investments | $295M | $333M | $276M | $321M | $389M | — |
| Total debt | — | — | $106M | $110M | $108M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 26.1x · EV/Sales 25.1x · P/B 60.8x · Earnings yield -3.28% · Net cash $225M · EV $6.03B

## Insider sales (SEC Form 4, open-market, last ~7 months)
7 of 8 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-14 | Meeker David P | President and CEO | 50,000 | $5.1M | 17.3% | Yes (adopted June 15, 2026) | Too little history (no open-market trades in 2023) |
| 2026-08-31 | Smith Hunter C | Chief Financial Officer | 62,774 | $6.6M | 35.5% | Yes (adopted May 13, 2026) | Routine (sold in Feb each year 2023–2025; this trade is outside those months) |
| 2026-08-13 | Shulman Joseph | Chief Technical Officer | 5,079 | $608K | 24.2% | Yes (adopted December 15, 2025) | Routine (sold in Feb each year 2023–2025; this trade is outside those months) |
| 2026-08-13 | Garfield Alastair | Chief Scientific Officer | 7,763 | $913K | 77.2% | Yes (adopted May 14, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-13 | Lee Jennifer Kayden | EVP, Head of North America | 75,834 | $8.9M | 100% | Yes (adopted May 14, 2026) | Routine (sold in Feb each year 2023–2025; this trade is outside those months) |
| 2026-08-12 | Mazabraud Yann | EVP, Head of International | 57,000 | $6.6M | 50.6% | Yes (adopted May 13, 2026) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-06-22 | Tetrault Lynn A. | Director | 37,000 | $3.7M | 84.1% | Yes (adopted December 15, 2025) | Too little history (no open-market trades in 2023 or 2025) |
| 2026-05-15 | German Christopher Paul | Corporate Controller & CAO | 4,643 | $428K | 100% | No | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.84 on a 1–5 scale), 19 analysts; mean target USD 140.29 (low 120, high 160).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-16 | William Blair | Initiated | Outperform |  |
| 2026-10-15 | JP Morgan | Target lowered | Overweight | $146 → $145 |
| 2026-10-12 | HC Wainwright & Co. | Target raised | Buy | $105 → $130 |
| 2026-10-08 | RBC Capital | Target raised | Outperform | $155 → $159 |
| 2026-08-28 | Deutsche Bank | Initiated | Hold | $120 |
| 2026-08-07 | JP Morgan | Target raised | Overweight | $145 → $146 |
| 2026-08-05 | Citigroup | Target raised | Buy | $142 → $143 |
| 2026-08-05 | RBC Capital | Target raised | Outperform | $141 → $155 |
| 2026-08-05 | Citizens | Target raised | Market Outperform | $155 → $160 |
| 2026-07-27 | JP Morgan | Initiated | Overweight | $145 |
| 2026-07-07 | RBC Capital | Target raised | Outperform | $137 → $141 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -16.7% | +727.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -16.8% | +52.5% |
| Volatility (annualized) | 46.1% | 77.4% |
| Max drawdown | -35.5% (Dec 2025→Mar 2026) | -76.7% (Nov 2021→May 2022) |

## Peers (Biotechnology)
LGND (Ligand Pharmaceuticals Incorpor) USD 307.82 -2.21% · IOVA (Iovance Biotherapeutics, Inc.) USD 14.14 -3.28% · PRAX (Praxis Precision Medicines, Inc) USD 258.92 +0.96% · IONS (Ionis Pharmaceuticals, Inc.) USD 43.91 -0.81% · ABVX (Abivax SA) USD 90.23 -3.49% · TGTX (TG Therapeutics, Inc.) USD 53.16 -0.08%

## More
Full page: https://nexqual.com/RYTM · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in RYTM's own 10-K filed 2026-02-26 (https://www.sec.gov/Archives/edgar/data/1649904/000162828026012399/rytm-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | LG Chem | "•Our Revenue Interest Financing Agreement with Healthcare Royalty Partners, our license agreement with LGC, and our other agreements, could restrict our ability to commercialize IMCIVREE, limit cash flow available for ou…" |
| Partner | RareStone Group | "During the year ended December 31, 2025, we recognized a reduction of previously recognized license revenue of $5.0 million in connection with the termination of our exclusive license agreement with RareStone." |
| Partner | Cowen and Company | "On November 2, 2021, we entered into a Sales Agreement with Cowen and Company, LLC ("Cowen"), pursuant to which we may issue and sell shares of its common stock, having an aggregate offering price of up to $100.0 million…" |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product revenue, net | $71.3M | 100.0% | +46.9% |
| Total revenue | $71.3M | 100% | — |

## Customer concentration

Period ended 2026-06-30: 72% of revenue from unnamed direct customers (10-Q, filed 2026-08-04).

## Company outlook (8-K filed 2026-08-04)

- "Financial Guidance: For the year ending December 31, 2026, Rhythm anticipates approximately $363 million to $397 million in Non-GAAP Operating Expenses."
- "Based on its current operating plans, Rhythm expects that its cash, cash equivalents and short-term investments as of June 30, 2026 will be sufficient to fund the Company's planned operations for at least 24 months."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $-0.74 | $-0.82 | -9.6% | $84.5M | 13 |
| Next quarter (ends 2026-12-31) | $-0.73 | $-0.77 | -5.1% | $99.1M | 13 |
| Current fiscal year (ends 2026-12-31) | $-3.04 | $-3.27 | -6.9% | $315.1M | 13 |
| Next fiscal year (ends 2027-12-31) | $-0.63 | $-0.79 | -20.2% | $565.1M | 13 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-03): ±11.1%; last 8 reports averaged ±6.8%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 49.5% | ±11.1% |
| 2026-12-18 | 56 | 44.3% | ±13.9% |
| 2027-01-15 | 84 | 45.6% | ±17.4% |
| 2027-03-19 | 147 | 48.9% | ±24.5% |
| 2027-04-16 | 175 | 48.6% | ±26.6% |