BIOTECH MARKET RESEARCH $RYTM | Ep. 635

Rhythm Pharmacueticals

Rhythm Pharmaceuticals (RYTM) is approaching a key inflection point with the anticipated Phase 3 data readout for setmelanotide in hypothalamic obesity (HO) expected tomorrow at 8am ET. This represents Rhythm’s most significant expansion opportunity beyond rare genetic obesity syndromes, targeting a broader population with an acquired disorder of energy imbalance often caused by hypothalamic damage from craniopharyngioma or its treatment. Market sentiment reflects cautious optimism, with limited volatility (+/- 25%) as the readout nears.

Every Monday we are out with public biotech research, profiling biotech companies with near term catalysts. This will focus primarily on the major market moving biotech events such as data readouts from the major scientific conferences as well as potential regulatory approvals.

We will not offer specific trading advice (and we do not hold any publicly traded biotech equity), but rather flag emerging events that will likely materially drive stock prices (sometimes +/-100% in either direction).

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HOW TO PLAY BIOTECH APPROVAL/DATA READOUTS ANNOUNCEMENTS

While biotech equities will move on news of announcement, often if there is high conviction in a positive read, a large run up ahead of the news will occur and the actual event turns into a sell the news event. Sometimes, investors wait for the actual event to make a long/short decision. And obviously if the news is disappointing (more often than not) the stock will tank.

This is not financial advice so you will have to make your own call on how to best play these events. Our aim is simply to flag catalysts with high projected volatility.

🚨 ALERT: Phase 3 data for setmelanotide in Hypothalamic obesity (HO)

📅 DATE: 4/7/2025 8am ET

📈 IMPLIED VOLATILITY: +/- 25%