Rhythm Pharmaceuticals, Inc. Announces Proposed Public Offering of Common Stock
Rhea-AI Summary
Rhythm Pharmaceuticals (NASDAQ: RYTM), a global biopharmaceutical company focused on rare neuroendocrine diseases, has announced a proposed public offering of $150 million of its common stock. The company will also grant underwriters a 30-day option to purchase up to an additional $22.5 million of shares.
The offering will be managed by joint book-runners Morgan Stanley, BofA Securities, Stifel, and Wells Fargo Securities, with Canaccord Genuity and Citizens Capital Markets acting as lead managers. The offering will be made through a shelf registration statement on Form S-3 that became effective on March 2, 2023.
Positive
- Potential to raise up to $172.5 million in total capital if overallotment option is exercised
- Multiple top-tier investment banks involved as underwriters indicating strong institutional support
Negative
- Potential dilution for existing shareholders
- Stock offering may put downward pressure on share price
News Market Reaction – RYTM
On the day this news was published, RYTM gained 0.04%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
BOSTON, July 09, 2025 (GLOBE NEWSWIRE) -- Rhythm Pharmaceuticals, Inc. (Nasdaq: RYTM) (“Rhythm”), a global, commercial-stage biopharmaceutical company dedicated to transforming the lives of patients living with rare neuroendocrine diseases, today announced a proposed public offering of
Morgan Stanley, BofA Securities, Stifel and Wells Fargo Securities are acting as joint book-running managers for the proposed offering. Canaccord Genuity and Citizens Capital Markets are acting as lead managers for the offering. The offering is subject to market and other customary closing conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The proposed offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was filed by Rhythm with the Securities and Exchange Commission (“SEC”) and automatically became effective upon filing on March 2, 2023. The proposed offering will be made only by means of a prospectus supplement and the accompanying base prospectus. A preliminary prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. A copy of the preliminary prospectus supplement relating to the offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, New York 10014, or by email at prospectus@morganstanley.com; BofA Securities, Inc., Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, or by email at dg.prospectus_requests@bofa.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by email at syndprospectus@stifel.com; or Wells Fargo Securities, LLC, Attention: WFS Customer Service, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, or by phone at 800-645-3751, (option #5), or by email at WFScustomerservice@wellsfargo.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the completion, timing and size of our proposed public offering and our expectations with respect to granting the underwriters a 30-day option to purchase additional shares. Statements using words such as “expect”, “anticipate”, “believe”, “may”, “will” and similar terms are also forward-looking statements. Such statements are subject to numerous risks and uncertainties, including, but not limited to, risks associated with general economic and market conditions and the other important factors discussed under the caption “Risk Factors” in the prospectus supplement related to the offering, our Annual Report on Form 10-K for the year ended December 31, 2024, our filings on Forms 10-Q and 8-K and our other filings subsequently filed with the SEC. Except as required by law, we undertake no obligations to make any revisions to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release, whether as a result of new information, future developments or otherwise.
Contacts:
David Connolly
Head of Investor Relations and Corporate Communications
Rhythm Pharmaceuticals, Inc.
857-264-4280
dconnolly@rhythmtx.com
Layne Litsinger
Real Chemistry
(410) 916-1035
llitsinger@realchemistry.com
FAQ
How much is Rhythm Pharmaceuticals (RYTM) planning to raise in its public offering?
Who are the underwriters for RYTM's stock offering?
When did Rhythm Pharmaceuticals' shelf registration statement become effective?
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What is the purpose of Rhythm Pharmaceuticals' business?
