Rhythm Pharmaceuticals, Inc. (RYTM) Stock

Rhythm Pharmaceuticals, Inc. (RYTM) is a Healthcare stock trading at $109.99 (as of 2026-08-21), with a market capitalization of $7.57B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Rhythm Pharmaceuticals, Inc. develops and commercializes therapeutics for rare genetic obesity disorders. Its lead product, IMCIVREE, targets melanocortin-4 receptor–related conditions, and it is also developing setmelanotide for multiple obesity indications linked to POMC/LEPR and other MC4R pathway disorders.

Understand Rhythm Pharmaceuticals, Inc.: how it makes money

Rhythm Pharmaceuticals develops and commercializes biopharmaceutical therapeutics for rare genetic diseases of obesity, and it makes money primarily from net sales of its lead product IMCIVREE (setmelanotide), plus smaller licensing-related revenue.

Even with very high gross margin (88.1%), the company is deeply loss-making at the operating level (operating margin -87.1%), so the profit model is structurally dependent on growing and scaling IMCIVREE-driven net product revenue enough to cover operating expenses.

Revenue by segment (latest quarter)
IMCIVREE Global Net Product Sales$0.1B
MCIVRI/Incyvri Net Revenue (Global)$0.0B
Licensing Revenue$0.0B

Business quality (Weak): The latest quarter shows high gross margin, but operating results are heavily negative, and the business appears concentrated in IMCIVREE plus smaller licensing, with other product revenue largely not contributing.

Bull case

  • High profitability at the gross level: Gross margin is 88.1% (2026-03-31), indicating strong economics per unit sold.
  • IMCIVREE is the core commercial revenue driver: Net Product Revenues from Global Sales of IMCIVREE (setmelanotide) are 0.06B, with 0.04B from the United States and 0.02B outside the United States.

Bear case

  • Operating losses remain severe: Operating margin is -87.1% (2026-03-31), meaning operating expenses overwhelm gross profit.
  • Revenue concentration and limited diversification in the data provided: IMCIVREE global net product revenue is 0.06B, while licensing revenue is 0.01B and other reported product revenue is shown as 0.0B for Incivri Product Revenue.
  • Clinical and development uncertainty for additional indications: Setmelanotide is in Phase II clinical trials for POMC or LEPR heterozygous deficiency obesities, which adds execution and trial risk beyond current commercial sales.
Valuation — source: SEC EDGAR (first-party)
Price$109.99
Market Cap$7.57B
Price / Book73.54
Price / Sales31.19
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$189.76M
Net Margin-103.6%
Revenue Growth (YoY)45.8%
EPS Growth (YoY)-28.3%
FCF Growth (YoY)2.4%
Financial Health — source: SEC EDGAR
Altman Z-Score9.25 (safe)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Sector P/E (Healthcare)21.7
Industry P/E (Pharmaceutical Products)17.2
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($664.82M)
Institutional Holders Tracked10
Company
SectorHealthcare
IndustryPharmaceutical Products
CEODavid Meeker
Employees283
CountryUS
IPO Date2017-10-09

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RYTM earnings history · RYTM institutional & insider holders · RYTM KPIs & operating metrics · RYTM financials · RYTM investor presentations & press releases · RYTM SEC filings · RYTM peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.