RYTMRHYTHM PHARMACEUTICALS, INC.

Pharmaceutical Preparations

Revenue: $190M; 46% YoY
Operating margin: -101.2%; 50% YoY
EBITDA: −$192M; 28% YoY
Market cap: $6.4B
Employees: 400,000; $474 revenue each
Net debt / EBITDA: —; $7M net debt
AI in 10-K: 1.3; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersNo
1 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$7M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCYes
35% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
—
Over 40% of assets
Shareholder dissentNo
81% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeYes
$474 · 10th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.3 per 10K words · 41st pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedNo
$6.4B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$39M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$3M	$24M	$77M	$130M	$190M	46%
Operating income	−$170M	−$179M	−$184M	−$266M	−$192M	28%
Net income	−$70K	−$181K	−$185K	−$261K	−$197K	25%
Operating cash flow	−$146M	−$173M	−$136M	−$114M	−$116M	1.6%
Capex	$434K	$281K	$47K	$0	$953K
Stock-based comp	$21M	$20M	$33M	$40M	$67M	68%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Apr 30, 2024	NEW ENTERPRISE ASSOCIATES 13 LP	SC 13D/A	—	Passive
Apr 17, 2024	PERCEPTIVE ADVISORS LLC	SC 13D/A	8.3%	Active
Apr 3, 2024	PERCEPTIVE ADVISORS LLC	SC 13D/A	5.4%	Passive
Mar 20, 2024	PERCEPTIVE ADVISORS LLC	SC 13D	11.1%	Passive
Mar 29, 2023	NEW ENTERPRISE ASSOCIATES 13 LP	SC 13D/A	5.1%	Passive
Jun 26, 2020	MPM BIOVENTURES V, L.P.	SC 13D/A	4.4%	Passive
Feb 5, 2020	MPM BIOVENTURES V, L.P.	SC 13D/A	5.5%	Passive
Feb 12, 2019	MPM BIOVENTURES V, L.P.	SC 13D/A	0.3%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $39M · 50
Net: −$39M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$18M	$54M	360	94
FY2024	$15M	$19M	188	93
FY2023	$7M	$19M	155	94
FY2022	$3M	$24M	98	90
FY2021	$6M	−$10M	34	100