Joseph Shulman, Chief Technical Officer at Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), recently executed a series of stock transactions. On November 11, Shulman sold a total of 13,281 shares of common stock, yielding approximately $882,340. The shares were sold at prices ranging from $65.7291 to $67.8343.
In addition to the sales, Shulman exercised stock options, acquiring 13,281 shares at prices between $6.8 and $21.38. These transactions were carried out under a pre-established trading plan, as noted in the company's SEC filing.
Following these transactions, Shulman now holds no shares directly, according to the filing.
In other recent news, Rhythm Pharmaceuticals reported a successful third quarter in 2024, with a substantial 48% year-over-year increase in global net revenue, reaching $33.3 million. This growth was primarily driven by increased sales of its drug IMCIVREE for Bardet-Biedl Syndrome (BBS). The U.S. contributed $23.3 million, making up 70% of total sales, while international revenue rose to $10 million, marking a 35% increase from the previous quarter.
Rhythm also outlined advancements in their clinical trials and strategic initiatives. The company is currently enrolling for a Phase II trial for bivamelagon and a Phase I trial for RM-718, with completion expected in early 2025. Additionally, a PDUFA date for expanding IMCIVREE's label to include children ages two to six is set for late December 2024.
R&D expenses rose to $37.9 million due to ongoing clinical trials and programs. Despite this, Rhythm reduced its 2024 operating expense guidance to $245-$255 million and reported $298.4 million in cash reserves, expressing confidence in its ability to fund operations well into 2026. These recent developments suggest a positive trajectory for Rhythm Pharmaceuticals.
InvestingPro Insights
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) has been experiencing significant growth and market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, the company's revenue growth stands at an impressive 81.55% over the last twelve months as of Q3 2024, with quarterly revenue growth at 47.76%. This robust growth aligns with the recent insider trading activity of the company's CTO, Joseph Shulman.
The company's market capitalization of $3.69 billion suggests it has become a notable player in its sector. Despite the strong revenue growth, it's important to note that Rhythm Pharmaceuticals is not yet profitable, with an adjusted operating income of -$265.51 million over the last twelve months. This is consistent with an InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
However, Rhythm Pharmaceuticals boasts impressive gross profit margins of 88.61%, which is highlighted as one of the InvestingPro Tips. This high margin suggests the company has strong pricing power for its products or efficient production processes, which could be crucial for future profitability.
The stock's performance has been remarkable, with a one-year price total return of 81.86% as of the latest data. This aligns with another InvestingPro Tip noting the company's high return over the last year. Additionally, the stock is trading at 87.59% of its 52-week high, indicating sustained investor confidence.
For investors seeking more comprehensive analysis, InvestingPro offers 15 additional tips for Rhythm Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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