Rhythm Pharmaceuticals Inc · Q2 2023 earnings

Briefing

Reported second quarter 2023 financial results and provided a business update.

Rhythm Pharmaceuticals reported strong revenue performance in Q2 2023, driven by robust patient demand for IMCIVREE® in the U.S. The company achieved a commercial sales milestone, making them eligible for an additional $25 million investment. Enrollment in the pivotal Phase 3 trial for setmelanotide in hypothalamic obesity is expected to be completed by the end of 2023.

• Second quarter 2023 net revenue of $19.2 million from global sales of IMCIVREE® (setmelanotide).
• Strong U.S. commercial progress continues with more than 125 new prescriptions for Bardet-Biedl syndrome (BBS) in 2Q 2023, more than 425 since FDA approval.
• Achieved commercial sales milestone and now eligible to receive third investment tranche of $25 million from Healthcare Royalty Partners.
• Enrollment ongoing in pivotal Phase 3 trial evaluating setmelanotide in hypothalamic obesity; based on rapid progress, study now expected to be fully enrolled by the end of 2023.

Headline financials

Revenue & EPS history

For the year ending December 31, 2023, Rhythm continues to anticipate approximately $200 million to $220 million in Non-GAAP Operating Expenses, comprised of $120 million to $130 million from R&D expenses and $80 million to $90 million from S,G&A expenses. Based on its current operating plans, Rhythm expects that its existing cash, cash equivalents and short-term investments as of June 30, 2023, together with the anticipated $25 million milestone payment based on commercial sales from Healthcare Royalty Partners, will be sufficient to fund its operating expenses and capital expenditure requirements into 2025.