Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases in the United States and internationally.
FAIL · Does not pass the screen
93.41 USD
Screen close, 2026-10-01 · not a live quote Last reviewed 6 days ago
Screened 2026-10-01 · the tape above runs as of 23:45 UTC · 6 Oct · two dates, stated on purpose · verdict and workings shown in full · never trimmed
PRICE · FAIR-VALUE RANGE1M3M6MYTD1Y3Y5Y
What this means: price 93.41 against the desk's fair-value range, base estimate 143.00, over the last year.
Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price93.41 USD
Fair value143.00
Ethical score70.0/100
Our investment reviews on this name
2026-09-12Read Markdown104.71-10.8% to today ✓
2026-07-02Read Markup88.38+5.7% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Rhythm Pharmaceuticals, Inc. holds its Markdown at $93.41. Elevated stress, defensive posture warranted, held for 28 days.
As held on the ledger · 2026-10-01
Phase
Markdown · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 28 days
Price at the screen
$93.41
Valuation
N/A trailing · -152.48 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.97
The Workings
Five Screens, Shown in Full
Does not pass. Interest-bearing securities
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
0.83%
Below 33%
Interest-bearing debt is just 0.8% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
69.69%
Below 33%
Interest-bearing cash and securities are 69.7% of assets, above the one-third limit.
Fail
Receivables
16.74%
Below 49%
Money owed to the company is 16.7% of assets, under the 49% limit.
Pass
Revenue purity
8.06%
Below 5%
8.1% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Rhythm Pharmaceuticals,'s business is fine, but its cash and interest-bearing securities are about 70% of its assets, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-10-01 screen. The gold marker is the market price at the same screen. A 53.1% margin of safety to the base estimate.
Third-party analyst targets: 17 covering, consensus Strong Buy. The average target sits +53% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-01 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Rare disease drug still deep in the red
Rhythm Pharmaceuticals chases ultra-rare hormone disorders with its single approved medicine, IMCIVREE. Revenue is rising fast at 84 percent, yet the firm still posts a 93 percent negative profit margin and a 101 percent negative return on equity. The market prices the shares at 106.60 dollars against a fair value of 142 dollars, but the opportunity rating sits at none.
The numbers show classic pre-profit biotech economics. Forward earnings sit at a negative 145.6 times sales, so any valuation edge rests entirely on future approvals and pricing power that have not yet arrived. Ethical screens clear the company, yet that alone does not turn heavy cash burn into durable returns.
High revenue growth in orphan drugs often masks dilution risk and binary clinical outcomes. A single setback can erase years of progress while the cash outflow continues. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day; as a biotechnology name, trial and regulatory outcomes can move it sharply either way.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
RYTM trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown$93.41-10.8%Entry 6
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 10.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 27%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (15 analysts) rates it none, with a mean price target of $138. Insiders have been net sellers over the past quarter.
2026-09-12Markdown · changed$104.71-6.6%Entry 5
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 6.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 27%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (15 analysts) rates it none, with a mean price target of $138. Insiders have been net sellers over the past quarter.
2026-08-12Markup$112.10+26.8%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 26.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 27%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (15 analysts) rates it none, with a mean price target of $138.
2026-07-18Markup$88.38+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 27%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (15 analysts) rates it none, with a mean price target of $138.
2026-07-03Markup$88.38+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$88.38Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
