Rhythm Pharmaceuticals, Inc. (RYTM) Q3 Earnings Miss Expectations
Rhythm Pharmaceuticals, Inc. (RYTM), a clinical-stage biopharmaceutical company focused on the development of therapeutics for rare metabolic disorders, recently reported its third-quarter 2022 financial results. The company reported a loss of $0.72 per share, which was wider than the Zacks Consensus Estimate of a loss of $0.69 per share. This represents a slight increase from the loss of $0.70 per share reported in the same quarter last year.
Financial Highlights
Total revenue for the third quarter came in at $1.9 million, a significant decrease from the $8.1 million reported in Q3 2021. The decline was primarily due to the absence of revenue from Setmelanotide, which was launched in the United States in the third quarter of 2021. Operating expenses also increased, driven by research and development costs and general and administrative expenses.
Impact on Investors
The wider-than-expected loss in Q3 2022 led to a decline in RYTM’s stock price, with shares closing at $29.20 on the day of the earnings release, a decrease of around 12% from the previous day’s close.
Impact on the World
RYTM’s Q3 earnings report may not have a significant impact on the world at large, as the company’s focus is on developing therapeutics for rare metabolic disorders. However, the results could potentially impact the biopharmaceutical industry as a whole, as investors and analysts continue to monitor the performance of clinical-stage biotech companies.
Looking Ahead
RYTM is currently focused on the development of Setmelanotide for the treatment of obesity and Prader-Willi Syndrome. The company is conducting a pivotal trial for Setmelanotide in obesity and anticipates filing a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) in the first half of 2023. The company also plans to initiate a Phase 3 trial for Setmelanotide in Prader-Willi Syndrome in the first quarter of 2023.
Conclusion
Rhythm Pharmaceuticals, Inc.’s Q3 earnings report showed a wider-than-expected loss, driven primarily by the absence of revenue from Setmelanotide and increased operating expenses. The results led to a decline in the company’s stock price. While the impact on the world at large may be limited, the results could potentially impact the biopharmaceutical industry as a whole. Looking ahead, RYTM remains focused on the development of Setmelanotide for the treatment of obesity and Prader-Willi Syndrome, with plans to file an NDA with the FDA in the first half of 2023.
- RYTM reported a wider-than-expected loss in Q3 2022
- Total revenue decreased significantly due to the absence of Setmelanotide revenue
- Operating expenses increased, driven by research and development costs and general and administrative expenses
- Stock price declined following the earnings release
- RYTM remains focused on the development of Setmelanotide for obesity and Prader-Willi Syndrome
