Bank of America (BofA) analyst Tazeen Ahmad has increased the price target for Rhythm Pharmaceuticals (RYTM, Financial) to $68, up from the previous target of $63, while maintaining a Buy rating for the company's shares. This adjustment follows an investor call that included insights from a key opinion leader regarding recent Phase 3 trial results.
The trial, focused on the drug setmelanotide for the treatment of hypothalamic obesity, yielded positive topline data. This development has bolstered confidence in the drug's efficacy, alleviating any initial skepticism. As a result, BofA anticipates heightened demand within the medical community, reflected in their updated model predicting a peak market penetration of 40% for hypothalamic obesity, an increase from the earlier estimate of 35%.
