Rhythm Pharmaceuticals, Inc. (RYTM) has its supplemental New Drug Application for setmelanotide accepted by the FDA to treat acquired hypothalamic obesity, sparking bullish sentiment on Wall Street. The Phase 3 data from the TRANSCEND study showed positive results, leading to a strong need for new treatments in this area.

Analyst Michael Ulz from Morgan Stanley reiterated a Buy rating on RYTM with a $109 price target. The application targets acquired hypothalamic obesity and has been granted Priority Review. The European Medicines Agency is also reviewing the drug, potentially leading to approval in Europe. RYTM is focused on developing precision medicines for rare genetic obesity disorders.

Read more at Yahoo Finance: FDA Accepts a New Drug Application From Rhythm Pharmaceuticals (RYTM)