In This Article:
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Revenue: $37.7 million from global sales of IMCIVREE in Q1 2025.
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Patient Growth: 14% increase in the number of patients on reimbursed therapy globally during the quarter.
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Inventory Impact: $8.3 million inventory swing at the specialty pharmacy in the US, affecting revenue.
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Net Revenue Change: Decrease of $4.1 million compared to Q4 2024 due to inventory shipment patterns.
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Net Product Revenue Increase: $11.7 million or 45% increase over Q1 2024.
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R&D Expenses: $37 million in Q1 2025, down from $128.7 million in Q1 2024.
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SG&A Expenses: $39.1 million in Q1 2025, compared to $34.4 million in Q1 2024.
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Cash Used in Operations: Approximately $40.4 million in Q1 2025.
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Cash on Hand: $314.5 million at the end of Q1 2025, sufficient to cover planned operations into 2027.
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GAAP EPS: Net loss per basic and diluted share of $0.81 in Q1 2025.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) reported a strong first quarter with global sales of IMCIVREE reaching $37.7 million.
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The company remains on track for a Q3 filing for their phase 3 trial on acquired hypothalamic obesity, with positive interactions with the FDA.
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Demand for IMCIVREE continues to grow, with a consistent number of new prescriptions and increased Medicaid coverage.
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The international team is executing well on its country-by-country launch strategy, with steady growth in France, Germany, and Italy.
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Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) is well-capitalized with a projected cash runway into 2027, supporting ongoing and future operations.
Negative Points
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Revenue was impacted by an $8.3 million inventory swing at the specialty pharmacy, leading to a net revenue decrease compared to the previous quarter.
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There was a modest decrease in patient compliance, which returned to a more normalized level in Q1.
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The company experienced a seasonal increase in cash used in operations, partly due to annual bonus payments.
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The reacquisition of rights in China resulted in a $6.3 million cash consideration, impacting financials.
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There are uncertainties regarding the payer mix for the hypothalamic obesity population, which could affect future revenue projections.
Q & A Highlights
Q: Can you discuss the reasons for the discontinuation of non-responders in the trial? A: David Meeker, CEO, explained that discontinuations were due to various reasons, including patients withdrawing because they couldn't keep up with the clinical trial demands or due to adverse reactions. Some patients had pre-existing conditions, such as uncontrolled seizures, which led to dropouts. The imputation method used for data analysis also affected the perceived response rates.