Rhythm Pharmaceuticals Inc. (NASDAQ:RYTM) raised $151.4 million through the sale of 5.7 million shares at $26.42 in a follow-on underwritten by Morgan Stanley, BofA Merrill Lynch, Cowen and Needham. The price is an 8% discount to Rhythm's close at $28.80 on Monday, when it proposed the offering after market hours. Rhythm dipped 9% to $26.17 on Tuesday, rebounded slightly on Wednesday and was up $6.49 (25%) to $32.91 on Thursday.
Rhythm expects data in 3Q19 from two Phase III trials of setmelanotide (RM-493) to treat obesity associated with proopiomelanocortin deficiency and leptin receptor (LEPR; CD295) deficiency. This year, the company plans to start a combined Phase III trial of the therapy to treat obesity related to Bardet-Biedl syndrome and Alström syndrome.
Setmelanotide is a small peptide melanocortin 4 receptor (MC4R) agonist. Rhythm has exclusive, worldwide rights to the candidate from Ipsen Group (Euronext:IPN; Pink:IPSEY).
In October 2017, Rhythm raised $119.9 million in its IPO, in which it priced shares at $17 (see "Rhythm Rises On $119.9M IPO").