Rhythm Pharmaceuticals Inc. ( RYTM ) shares are down during Tuesday’s premarket session following the Monday announcement of topline results from its EMANATE trial.

EMANATE was a Phase 3 trial designed to evaluate the efficacy and safety of setmelanotide in patients with rare, genetically driven obesities of the MC4R pathway.

EMANATE Trial Misses Primary Endpoints

In the EMANATE trial, Rhythm Pharmaceuticals ( RYTM ) revealed that the primary endpoints were not met.

Though the post hoc analyses indicated that setmelanotide achieved statistically significant BMI reductions in patients with obesity due to specific genetic variants at the 52-week mark.

Rhythm Pharmaceuticals Pipeline Focus Shifts To Next-Generation Assets

The company plans to continue analyzing the dataset and exploring potential clinical development paths for its next-generation MC4R agonists.

Additionally, no new safety signals were observed with setmelanotide, and the safety profile remained consistent with prior studies.

Rhythm plans to continue the analysis of the EMANATE dataset and evaluate potential clinical development paths forward with SRC1 (NCOA1) and POMC with its next-generation MC4R agonists bivamelagon and RM-718.

In addition, Rhythm Pharma will continue to evaluate the potential for MC4R agonism in the genes and gene families previously identified through the exploratory Phase 2 DAYBREAK trial.

In March, Rhythm Pharmaceuticals’ additional data from the Phase 3 TRANSCEND trial of setmelanotide highlighted an 18.8% placebo-adjusted difference in BMI reduction achieved in all patients at 52 weeks.

Rhythm Pharmaceuticals Technical Indicators Suggest Mixed Momentum

The stock is currently trading 9.3% below its 20-day simple moving average (SMA) and 13.5% below its 100-day SMA, indicating a bearish trend in the short to medium term.

Over the past 12 months, shares have increased by 72.93% and are currently positioned closer to their 52-week lows than highs.

The RSI is at 41.39, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is at -3.2769, below its signal line at -3.0517, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum for Rhythm Pharmaceuticals ( RYTM ), reflecting uncertainty in the stock’s near-term direction.

Key Resistance: $94.50

Key Support: $85.00

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $130.73. Recent analyst moves include:

Wells Fargo: Overweight (Raises Target to $143.00) (Mar. 12)

Canaccord Genuity: Buy (Lowers Target to $140.00) (Mar. 2)

HC Wainwright & Co.: Buy (Lowers Target to $110.00) (Mar. 2)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Rhythm Pharmaceuticals ( RYTM ), highlighting its strengths and weaknesses compared to the broader market:

Momentum: Strong (Score: 85.56) — Stock is outperforming the broader market.

The Verdict: Rhythm Pharmaceuticals’ Benzinga Edge signal reveals a momentum-driven story, indicating that while the stock faces challenges, it maintains strong momentum relative to the market.

Top ETF Exposure

Harbor Human Capital Factor US Small Cap ETF ( HAPS ) : 2.05% Weight

Innovator US Small Cap Managed Floor ETF ( RFLR ) : 0.27% Weight

Harbor Health Care ETF ( MEDI ) : 2.72% Weight

RYTM Stock Price Activity: Rhythm Pharmaceuticals ( RYTM ) shares were down 4.98% at $86.00 during after-market trading on Monday, according to Benzinga Pro data.