Rhythm Pharmaceuticals Inc. (NASDAQ:RYTM) shared additional data from the Phase 3 TRANSCEND trial of setmelanotide.
The stock’s movement comes as the company highlighted an 18.8% placebo-adjusted difference in BMI reduction achieved in all patients at 52 weeks, contributing to a positive outlook for the treatment of acquired hypothalamic obesity, which may bolster investor confidence in the company’s prospects.
Positive data from the trial could enhance the stock’s appeal amid a generally mixed market backdrop.
Rhythm previously announced the TRANSCEND trial met its primary and key secondary endpoints when it disclosed topline data from the pre-specified 120-patient pivotal cohort in April 2025.
Obesity Data
The latest data from Rhythm Pharmaceuticals indicates that the TRANSCEND trial met its primary and key secondary endpoints, with 142 patients participating, including a cohort of 12 Japanese patients.
Primary endpoint of mean BMI reduction of -16.4% from baseline for all patients on setmelanotide therapy (n=94) compared with +2.4% BMI change for patients on placebo (n=48) at 52 weeks.
Among patients aged 12 and older (n=98), the setmelanotide group (n=66) showed an average weekly reduction of 2.5 points in the weekly average most hunger score, compared with a 1.3‑point reduction in the placebo group (n=32).
In addition to the promising trial results, the company’s CEO, David Meeker, expressed optimism about the potential for setmelanotide to become the first approved therapy for patients suffering from acquired hypothalamic obesity.
The company’s supplemental New Drug Application (sNDA) is under FDA for setmelanotide, with a decision date by March 20.
Technical Analysis
Currently, the stock is trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, suggesting some short-term weakness.
Over the past 12 months, shares have increased by approximately 22%, and they are currently positioned closer to their 52-week highs than lows, reflecting a generally positive trend in the longer term.
The RSI is at 50.00, indicating a neutral position, while the MACD is at 0.15, below its signal line at 0.22, suggesting bearish pressure on the stock.
The combination of neutral RSI and bearish MACD indicates mixed momentum, reflecting uncertainty in the stock’s immediate direction.
- Key Resistance: $122.50
- Key Support: $90.00
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $131.33. Recent analyst moves include:
- Wells Fargo: Overweight (Lowers Target to $136.00) (Feb. 27)
- Citizens: Market Outperform (Raises Target to $176.00) (Feb. 27)
- Guggenheim: Buy (Raises Target to $143.00) (Feb. 27)
RYTM Price Action: Rhythm Pharmaceuticals shares were up 0.29% at $93.00 during premarket trading on Monday, according to Benzinga Pro data.
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