Rhythm Pharmaceuticals, Inc 10-Q for FY2025 Q1

About this 10-Q

Headline figures

Rhythm Pharmaceuticals, Inc. (RYTM)

10-Q 2025-05-07 For: 2025-03-31

Added on April 08, 2026

Rhythm Pharmaceuticals, Inc filed this 10-Q on May 7, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Three Months Ended

March 31,

Research and development summary

Research and development expense

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $32.7M; up 25.9% from $25.97M a year earlier
Net loss: $49.5M; compared with a net loss of $141.37M a year earlier
Diluted EPS: -$0.81; compared with -$2.35 a year earlier

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Delaware	46-2159271
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	RYTM	The Nasdaq Stock Market LLC (Nasdaq Global Market)


Large accelerated filer ☒	Accelerated filer ☐

Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐


		Page No.
PART I	FINANCIAL INFORMATION

	Item 1. Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss	4


	Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity	5


	Condensed Consolidated Statements of Cash Flows	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	26

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	39

	Item 4. Controls and Procedures	39

PART II	OTHER INFORMATION

	Item 1. Legal Proceedings	40

	Item 1A. Risk Factors	40

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	103

	Item 3. Defaults Upon Senior Securities	103

	Item 4. Mine Safety Disclosure	104

	Item 5. Other Information	104

	Item 6. Exhibits	104

SIGNATURES		106


	March 31,		December 31,
	2025		2024

Assets
Current assets:
Cash and cash equivalents	$	106,095	$	89,137
Short-term investments		208,393		231,428
Accounts receivable, net		17,825		18,512
Inventory		19,316		18,741
Prepaid expenses and other current assets		17,659		16,382
Total current assets		369,288		374,200
Property and equipment, net		462		632
Right-of-use asset		3,367		3,477
Intangible assets, net		5,960		6,174
Restricted cash		464		464
Other long-term assets		7,144		7,326
Total assets	$	386,685	$	392,273
Liabilities, Convertible Preferred Stock and Stockholders’ equity
Current liabilities:
Accounts payable	$	11,912	$	12,328
Accrued expenses and other current liabilities		59,314		62,658
Other current liability - LG Chem		38,783		37,704
Lease liability		224		—
Deferred revenue		—		1,286
Deferred royalty obligation, current		1,590		1,541
Total current liabilities		111,823		115,517
Long-term liabilities:
Deferred royalty obligation		107,934		108,269
Lease liability, non-current		3,839		3,938
Total liabilities		223,596		227,724
Commitments and contingencies (Note 13)
Series A convertible preferred stock, $0.001 par value: 150,000 shares authorized; 150,000 and 150,000 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively. Liquidation preference of $150,000 as of March 31, 2025.		144,142		142,820
Stockholders’ equity:
Preferred stock, $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2025 and December 31, 2024		—		—
Common stock, $0.001 par value: 120,000,000 shares authorized; 63,494,892 and 62,390,654 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		62		61
Additional paid-in capital		1,223,772		1,177,045
Accumulated other comprehensive (loss)		(51)		(39)
Accumulated deficit		(1,204,836)		(1,155,338)
Total stockholders’ equity		18,947		21,729
Total liabilities, convertible preferred stock and stockholders’ equity	$	386,685	$	392,273



	Three months ended March 31,
	2025		2024
Revenues:
Product revenue, net	$	37,718	$	25,967
License revenue		(5,014)		—
Total revenues		32,704		25,967
Costs and expenses:
Cost of sales		3,648		2,807
Research and development		36,973		128,665
Selling, general, and administrative		39,087		34,382
Total costs and expenses		79,708		165,854
Loss from operations		(47,004)		(139,887)
Other income (expense):
Other income (expense), net		(644)		524
Interest expense		(5,409)		(4,755)
Interest income		3,639		3,046
Total other (expense), net		(2,414)		(1,185)
Loss before income taxes		(49,418)		(141,072)
Provision for income taxes		80		300
Net loss	$	(49,498)	$	(141,372)
Accrued dividends on convertible preferred stock		(1,322)		—
Net loss attributable to common stockholders	$	(50,820)	$	(141,372)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.81)	$	(2.35)

Weighted-average common shares outstanding, basic and diluted		63,059,165		60,143,558

Other comprehensive loss:
Net loss attributable to common stockholders	$	(50,820)	$	(141,372)
Foreign currency translation adjustment		(2)		(71)
Unrealized (loss), net on marketable securities		(10)		(244)
Comprehensive loss	$	(50,832)	$	(141,687)


									Accumulated
	Series A Convertible						Additional		Other				Total
	Preferred Stock			Common Stock			Paid-In		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Income (Loss)		Deficit		Equity
Balance at December 31, 2024	150,000	$	142,820	62,390,654	$	61	$	1,177,045	$	(39)	$	(1,155,338)	$	21,729
Stock compensation expense	—		—	—		—		12,862		—		—		12,862
Issuance of common stock in connection with ESPP	—		—	21,875		—		854		—		—		854
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	494,853		1		2,225		—		—		2,226
Issuance of common stock upon completion of ATM equity offering, net of $739 offering costs	—		—	587,510		—		32,108		—		—		32,108
Accretion of preferred stock dividends	—		1,322	—		—		(1,322)		—		—		(1,322)
Foreign currency translation adjustment	—		—	—		—		—		(2)		—		(2)
Net unrealized loss on marketable securities	—		—	—		—		—		(10)		—		(10)
Net loss	—		—	—		—		—		—		(49,498)		(49,498)
Balance at March 31, 2025	150,000	$	144,142	63,494,892	$	62	$	1,223,772	$	(51)	$	(1,204,836)	$	18,947

Balance at December 31, 2023	—		—	59,426,559	$	59	$	1,064,302	$	134	$	(894,736)	$	169,759
Stock-based compensation expense	—		—	—		—		7,767		—		—		7,767
Issuance of common stock in connection with ESPP	—		—	28,495		—		673		—		—		673
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	1,077,271		1		6,352		—		—		6,353
Issuance of common stock as consideration for LGC license	—		—	432,143		—		18,716		—		—		18,716
Foreign currency translation adjustment	—		—	—		—		—		(71)		—		(71)
Unrealized loss on marketable securities	—		—	—		—		—		(244)		—		(244)
Net loss	—		—	—		—		—		—		(141,372)		(141,372)
Balance at March 31, 2024	—	$	—	60,964,468	$	60	$	1,097,810	$	(181)	$	(1,036,108)	$	61,581


	Three Months Ended
	March 31,
	2025		2024
Stock options		7,157,931		7,029,546
Restricted stock units		2,704,837		1,775,146
Performance stock units		249,322		—
Common stock reserved for the conversion of Series A convertible preferred stock		3,124,999		—
Potential common shares		13,237,089		8,804,692


	Fair Value Measurements as of
	March 31, 2025 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	89,850	$	—	$	—	$	89,850
Marketable securities:
US treasury securities		58,327		—		—		58,327
Corporate debt securities and commercial paper		—		150,066		—		150,066
Derivative asset		—		—		190		190
Total	$	148,177	$	150,066	$	190	$	298,433


	Fair Value Measurements as of
	December 31, 2024 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Commercial Paper	$	—	$	2,984	$	—	$	2,984
Money market funds		71,334		—		—		71,334
Marketable securities:
US treasury securities		65,118		—		—		65,118
Corporate debt securities and commercial paper		—		166,310		—		166,310
Derivative asset		—		—		270		270
Total	$	136,452	$	169,294	$	270	$	306,016


	March 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Assets
Corporate debt securities and commercial paper (due within 1 year)	$	150,037	$	57	$	(28)	$	150,066
U.S. Treasury Securities		58,268		72		(13)		58,327
	$	208,305	$	129	$	(41)	$	208,393


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Assets
Corporate debt securities and commercial paper (due within 1 year)	$	166,255	$	147	$	(92)	$	166,310
U.S. Treasury Securities		65,074		79		(35)		65,118
	$	231,329	$	226	$	(127)	$	231,428


		As of March 31, 2025						As of December 31, 2024
	Estimated life (years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net

Capitalized Milestones	11	$	9,000	$	(3,040)	$	5,960	$	9,000	$	(2,826)	$	6,174


2025	$	641
2026		855
2027		855
2028		855
2029		855
Thereafter		1,899
Total	$	5,960


	March 31,		December 31,
	2025		2024
Raw Materials	$	5,027	$	6,776
WIP		1,689		1,250
Finished Goods		12,600		10,715
Total Inventory	$	19,316	$	18,741


	Three months ended
	March 31,
	2025		2024
Beginning aggregate estimated fair value of Level 3 liability (asset)	$	(270)	$	1,150
Change in fair value of embedded derivative		80		(490)
Ending aggregate estimated fair value of Level 3 liability (asset)	$	(190)	$	660


	Three Months Ended
	March 31,				Change
	2025		2024		$		%

	(in thousands)
Statement of Operations Data:
Product revenue, net	$	37,718	$	25,967	$	11,751	45	%
License revenue		(5,014)		—		(5,014)	(100)	%
Costs and expenses:
Cost of sales		3,648		2,807		841	30	%
Research and development		36,973		128,665		(91,692)	(71)	%
Selling, general, and administrative		39,087		34,382		4,705	14	%
Total costs and expenses		79,708		165,854		(86,146)	(52)	%
Loss from operations		(47,004)		(139,887)		92,883	(66)	%
Other income (expense), net		(2,414)		(1,185)		(1,229)	104	%
Loss before income taxes		(49,418)		(141,072)		91,654	(65)	%
Provision for income taxes		80		300		(220)	(73)	%
Net loss	$	(49,498)	$	(141,372)	$	91,874	(65)	%


		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	Date	Number
3.1	Amended and Restated Certificate of Incorporation.	10-Q	05/04/2020	3.1
3.2	Amended and Restated Bylaws.	8-K	12/18/2023	3.1
3.3	Certificate of Designations	8-K	04/16/2024	3.1
3.4	Amended and Restated Certificate of Designations	10-Q	05/07/2024	3.4
31.1*	Certification of the Principal Executive Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

31.2*		Certification of the Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.1**		Certification of the Principal Executive Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2**		Certification of the Principal Financial Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
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104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


	RHYTHM PHARMACEUTICALS, INC.

Dated: May 7, 2025	By:	/s/ David P. Meeker, M.D.
		Name: David P. Meeker, M.D.
		Title: President and Chief Executive Officer
		(Principal Executive Officer)

Dated: May 7, 2025	By:	/s/ Hunter C. Smith
		Name: Hunter C. Smith
		Title: Chief Financial Officer and Treasurer
		(Principal Financial Officer)


Date: May 7, 2025

/s/ David P. Meeker, M.D.
Name: David P. Meeker, M.D.
Title: President and Chief Executive Officer (Principal Executive Officer)

ov
Date: May 7, 2025

/s/ Hunter C. Smith
Name: Hunter C. Smith Title: Chief Financial Officer and Treasurer (Principal Financial Officer)

eith
/s/ David P. Meeker, M.D.
Name: David P. Meeker, M.D.
Title: President and Chief Executive Officer (Principal Executive Officer)

May 7, 2025