8. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)
Stock Upside: 58.52%
Market Capitalization: $6.13 billion
Number of Hedge Fund Holders: 47
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the most promising healthcare stocks according to Wall Street analysts. On June 13, Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) shared preliminary results from its ongoing Phase 2 trial of setmelanotide for Prader-Willi syndrome (PWS) at the Endocrine Society’s Annual Meeting in Chicago. The company said the data showed meaningful improvements in weight, body composition, hunger, and behavioral outcomes.
For context, PWS is a rare genetic disorder that causes a near-constant, overwhelming sense of hunger starting in early childhood. The condition leads to severe obesity and significant behavioral and emotional challenges. Currently, there are very few treatments that can meaningfully address this condition.
According to the data, patients on average saw their BMI drop by just over 3% at the six-month mark. The reductions were consistent across both adults and children. Also, setmelanotide showed meaningful improvements in the excessive hunger that defines PWS, that is, 8 out of 10 patients who entered the trial with moderate to severe hyperphagia saw their hunger scores improve significantly.
Rhythm added that the safety profile of setmelanotide in this trial was consistent with what has already been established in prior studies. The company said these results give it the confidence to move forward into a Phase 3 trial for PWS. This phase will be a larger, more rigorous study.
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a commercial-stage biopharmaceutical company. It is focused on developing and commercializing therapies for rare genetic diseases of obesity.
