Should You Invest in This Under-the-Radar Weight Loss Stock?

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)

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

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

The data indicates that disease comes in two forms, acquired and congenital, and setmelanotide's recent phase 3 study targeted the former

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)

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

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.