Rhythm Pharmaceuticals (RYTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue reached $29.1 million, up 51–52% year-over-year and 12% sequentially, with 74% from U.S. IMCIVREE sales, driven by growth in the U.S. and international markets.

• Achieved expanded regulatory approvals for IMCIVREE, including EU approval for children as young as 2 and sNDA submission for U.S. pediatric label expansion, with PDUFA date expected by year-end.

• Advanced clinical pipeline with completion of Phase 2 DAYBREAK, ongoing Phase 3 EMANATE and HO trials, and first patients dosed in new studies.

• Cash, cash equivalents, and short-term investments totaled $319.1 million as of June 30, 2024, bolstered by $150 million convertible preferred financing.

• Net loss for Q2 2024 was $32.3–$33.6 million, or $(0.55) per share, an improvement from Q2 2023.

Financial highlights

• Q2 2024 net product revenue: $29.1 million (U.S.: $21.6M, ex-U.S.: $7.5M), up from $19.2 million in Q2 2023.

• R&D expenses: $30.2 million, down from $33.5 million YoY; SG&A expenses: $36.4 million, up YoY but down 6% sequentially.

• Cost of sales: $2.9–$3 million (about 10% of revenue), mainly due to royalties.

• GAAP EPS: $(0.55), including an $8.9 million non-cash gain from preferred stock revaluation.

• Weighted shares outstanding: 61 million.

Outlook and guidance

• 2024 non-GAAP OpEx guidance: $250–$270 million (R&D: $145–$160M; SG&A: $105–$110M).

• Cash expected to fund operations into 2026.

• Key milestones: DAYBREAK data in H2 2024, EMANATE enrollment completion in H2 2024, and HO topline data in H1 2025.