RYTM stock is making a solid move after Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) announced positive results from two Phase 3 clinical trials evaluating setmelanotide.
Key Development
When biotech companies receive positive news with regards to any of their medicines that are under development, then the stock price generally rises, and that is what happened this morning with micro-cap stock Rhythm Pharmaceuticals. Obesity is now a problem that has reached epidemic proportions, and the complications associated with it are well known. Rhythm is involved in manufacturing medicines for treating genetic disorders brought on by obesity.
Today, the company announced highly positive data from the Phase 3 trial of its product. The medicine in question is a setmelanotide meant for the treatment of obesities brought on by a deficiency of LEPR (leptin receptor) and POMC (pro-opiomelanocortin).
According to the announcement made by Rhythm Pharmaceuticals, the Phase 3 trials showed that the product met its targets for both treatments and also displayed statistically important effects on the obesity that the patients suffered from.
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After the news was announced, RYTM stock rose by as much as 17% at $22.38 on Wednesday morning trade.
The Chief Executive Officer of Rhythm, Keith Gottesdiener, stated, “We believe these pivotal data are the first step towards making a positive impact for people affected by rare genetic disorders of obesity who have grown up with insatiable hunger and early onset, rapid weight gain that often leads to debilitating comorbidities.”
It goes without saying that this is a significant development for Rhythm Pharmaceuticals, considering the size of the market it could conquer if the product in question eventually hits the market. According to the company, there is a widespread belief that the positive results take it closer to offering the sort of treatments that it wants to develop. Moreover, Rhythm Pharmaceuticals also announced that it is going to apply for a rolling NDA from the concerned authorities for the product at some point at the end of 2019 or the beginning of 2020.
RYTM stock will definitely be one to put on the watch list for the foreseeable future.
Featured image: DepositPhotos © kwanchaidp
