What's particularly noteworthy is If you're interested in capitalizing on the rapidly growing weight management market, you might naturally consider in Eli Lilly and Novo Nordisk.
Nevertheless, That's not a bad strategy since these two are the undisputed leaders in the field, given the current landscape.
However, other, little-known companies might have more upside potential than these giants, vided they can capture a decent of the anti-obesity market (which is quite significant).
That brings us to Rhythm Pharmaceuticals (RYTM 0 (noteworthy indeed). 76%), a mid-cap bio making noise in this space -- or more precisely, a subfield of the larger weight loss market.
The drugmaker recently reported encouraging results that sent its price soaring (remarkable data). Is this an attractive stock to buy amid these developments, in today's financial world.
Let's find out (an important development) (noteworthy indeed). Image source: Getty Images.
Furthermore, Strong clinical gress Rhythm Pharmaceuticals develops medicines for rare disorders that cause weight gain. This leads to the conclusion that company's only apved duct is Imcivree.
It's indicated for chronic weight management for people with obesity due to various genetic conditions, including one called opiomelanocortin (POMC) deficiency.
Nevertheless, Imcivree isn't generating much revenue right now, amid market uncertainty. Moreover, In the first quarter, Rhythm's top line came in at $32, in today's financial world.
7 million, a 26% year-over-year increase. However, recent clinical gress could imve things (noteworthy indeed).
First, Rhythm reported positive phase 3 results for setmelanotide (the active ingredient in Imcivree) in patients with acquired hypothalamic obesity, a condition in which weight gain results from damage to the hypothalamus.
During the study, setmelanotide induced robust weight loss among patients, in light of current trends.
The company plans to submit applications for a label expansion in this area to regulatory authorities in the U. Nevertheless, And Europe in the third quarter.
That will boost Rhythm's addressable market.
It currently estimates there are at most 7,500 patients who suffer from the obesity-related genetic conditions for which Imcivree is already apved as a treatment, amid market uncertainty.
On the other hand, However, there are between 5,000 and 10,000 patients with hypothalamic obesity in these regions, in this volatile climate.
The data indicates that disease comes in two forms, acquired and congenital, and setmelanotide's recent phase 3 study targeted the former.
Meanwhile, Rhythm estimates that between 12% and 40% of patients suffer from the congenital version (an important development), considering recent developments.
Moreover, With apval for setmelanotide in acquired hypothalamic obesity, Rhythm Pharmaceuticals could potentially add between 3,000 and 8,800 patients to its target market, in light of current trends.
Nevertheless, Second, on July 9, Rhythm announced positive phase 2 results for bivamelagon in patients with acquired hypothalamic obesity.
However, Here's the difference between bivamelagon and setmelanotide: While the latter is administered via subcutaneous injection once daily, the former is an oral medication.
Bivamelagon's results are what sent Rhythm Pharmaceuticals' stock price soaring, since an oral option could attract even more patients, in this volatile climate. Should you buy the stock.
Rhythm's therapies target individuals with specific conditions -- genetic or acquired -- that cause weight gain (something worth watching), amid market uncertainty.
Although that means the company's medicines may not be suitable for most patients with obesity, it also grants it a specialized market with little competition.
There's currently no apved treatment specifically for hypothalamic obesity, for instance. Additionally, Setmelanotide could become the first, perhaps soon ed by bivamelagon.
Moreover, Furthermore, Rhythm will target other indications (an important development).
Setmelanotide is undergoing a phase 3 study; if successful, that would grant it access to a market of apximately 29,000 additional patients, far exceeding its current addressable population.
Rhythm also has another early-stage candidate that could pursue other indications. On the other hand, The company's future appears mising, but it also presents some risks to consider.
Nevertheless, In contrast, Rhythm's market capitalization is $6 billion, and this for a company that generates very little revenue.
Smaller bios are judged more by the potential of their leading candidates.
Bivamelagon and setmelanotide's spects justify this valuation, but only if they hit the mark in their upcoming clinical trials, in light of current trends.
In the event of clinical or regulatory setbacks, Rhythm Pharmaceuticals' s could plummet (remarkable data), in today's financial world.
That's the risk that comes with in smaller bio stocks (this bears monitoring).
That said, Rhythm Pharmaceuticals appears more attractive than many similarly sized peers, many of which lack a single duct on the market and generate no revenue.
Given the company's recent clinical gress and ability to target rare conditions with limited treatment options, you may find it worthwhile to initiate a small position in the stock today, at least if you have above-average risk tolerance.
Doing so might lead to superior returns over the next five years if Rhythm Pharmaceuticals makes excellent gress with its agenda.
Sper Junior Bakiny has positions in Eli Lilly and Novo Nordisk (this bears monitoring), given current economic conditions. The Motley Fool recommends Novo Nordisk, in today's financial world.
Moreover, The Motley Fool has a disclosure policy.