Rhythm Pharmaceuticals (RYTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue reached $29.1M, up 12% sequentially and 51–52% year-over-year, driven by IMCIVREE sales growth in the U.S. and internationally.

• Achieved regulatory milestones, including European Commission approval for pediatric use as young as 2 years old and sNDA submission for U.S. label expansion.

• Advanced clinical pipeline with completion of Phase 2 DAYBREAK trial, ongoing Phase 3 EMANATE and HO pivotal trials, and first patients dosed in Japanese and U.S. studies.

• Maintained strong cash and investments of $319.1M as of June 30, 2024, bolstered by $150M convertible preferred financing.

• Net loss for Q2 2024 narrowed to $32.3M–$33.6M, reflecting higher revenue and a one-time $8.9M gain from preferred stock valuation.

Financial highlights

• Q2 2024 net product revenue: $29.1M, with 74% from U.S. sales and 26% ex-U.S.; ex-U.S. revenue grew 14% quarter-over-quarter.

• Gross margin remained strong at 89.9–90%, with cost of sales at $2.9–$2.95M.

• R&D expenses were $30.2M, down from $33.5M year-over-year; SG&A expenses were $36.4M, up from $30M year-over-year.

• Q2 2024 GAAP EPS was $(0.55), with weighted average shares outstanding at 61M.

• Cash and equivalents totaled $319.1M, supporting operations into 2026.

Outlook and guidance

• 2024 non-GAAP OpEx guidance: $250M–$270M, with R&D at $145M–$160M and SG&A at $105M–$110M.

• Cash on hand expected to fund operations into 2026.

• Key milestones: Phase 3 HO trial readout in H1 2025, EMANATE trial enrollment completion by year-end, and DAYBREAK data in H2 2024.