Why Is Rhythm Pharmaceuticals Stock Down Today?

Rhythm Pharmaceuticals Inc RYTM shares are trading lower Thursday morning after the company priced its public offering of 4.8 million shares of common stock at $26 per share.

All shares are being offered by Rhythm. The company also intends to grant underwriters a 30-day option to purchase up to an additional 720,000 shares at the public offering price. The offering is expected to close on Sept. 19.

"We intend to use the net proceeds from this offering to advance global commercialization of IMCIVREE for obesity due to PPL deficiency and BBS, to advance clinical development of setmelanotide in hypothalamic obesity, as well as our EMANATE, DAYBREAK and weekly formulation trials, and for working capital and general corporate purposes," the company said in a regulatory filing. 

Rhythm is a commercial-stage biopharmaceutical company focused on transforming the lives of patients and their families living with hyperphagia and severe obesity caused by rare melanocortin-4 receptor pathway diseases.

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RYTM Price Action: Rhythm has a 52-week high of $27.68 and a 52-week low of $3.04. The stock has traded higher by nearly 800% over the last three months. 

The stock was down 10.1% at $27.75 at time of publication.