Rhythm Pharmaceuticals, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

Rhythm Pharmaceuticals (RYTM) has announced a public offering of 4,800,000 shares at $26.00 each, set to close on September 19, 2022. All shares are being offered by the company, with an option for underwriters to purchase an additional 720,000 shares. Cowen, Stifel, and Wells Fargo Securities serve as joint book-running managers. The offering is registered under a shelf registration statement filed with the SEC.

Positive

• Public offering of 4,800,000 shares at $26.00 each, raising significant capital for business operations.
• Underwriters have a 30-day option to purchase an additional 720,000 shares, potentially increasing total funds raised.

Negative

• Dilution of existing shares for current shareholders due to the new share offering.

BOSTON, Sept. 14, 2022 (GLOBE NEWSWIRE) -- Rhythm Pharmaceuticals, Inc. (Nasdaq: RYTM) (“Rhythm”), 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 (MC4R) diseases, today announced the pricing of its public offering of 4,800,000 shares of its common stock at a public offering price of $26.00 per share. All of the shares are being offered by Rhythm. In addition, Rhythm has granted the underwriters a 30-day option to purchase up to an additional 720,000 shares of its common stock at the public offering price, less the underwriting discount and commission. The offering is expected to close on September 19, 2022, subject to the satisfaction of customary closing conditions.

Cowen, Stifel and Wells Fargo Securities are acting as joint book-running managers for the offering. Ladenburg Thalmann is acting as manager for the offering.

The 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”) on November 2, 2021 and declared effective by the SEC on November 15, 2021. A preliminary prospectus supplement relating to the offering was filed with the SEC on September 14, 2022. The final prospectus supplement relating to the offering will be filed with the SEC. Copies of the final prospectus supplement relating to the offering, when available, may be obtained from: Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, by telephone at (833) 297-2926 or by email at PostSaleManualRequests@broadridge.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at 415-364-2720 or by email at syndprospectus@stifel.com, or Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York 10001, at 833-690-2713 or email a request to cmclientsupport@wellsfargo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or 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 jurisdiction.

Forward Looking Statement
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 of the public offering. 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 Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 and our other filings 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.

Company Contact:
David Connolly
Head of Investor Relations and Corporate Communications
Rhythm Pharmaceuticals, Inc.
857-264-4280
dconnolly@rhythmtx.com

Investor Contact:
Hannah Deresiewicz
Stern Investor Relations, Inc.
212-362-1200
hannah.deresiewicz@sternir.com

Media Contact:
Adam Daley
Berry & Company Public Relations
212-253-8881
adaley@berrypr.com

FAQ

What is the purpose of Rhythm Pharmaceuticals' public offering?

The offering is intended to raise capital for business operations and growth initiatives.

How many shares of common stock is Rhythm Pharmaceuticals offering?

Rhythm Pharmaceuticals is offering 4,800,000 shares of its common stock.

What is the pricing of the public offering for RYTM?

The shares are being offered at a public offering price of $26.00 each.

When is the expected closing date for the Rhythm Pharmaceuticals offering?

The offering is expected to close on September 19, 2022.

Who are the underwriters managing Rhythm Pharmaceuticals' offering?

Cowen, Stifel, and Wells Fargo Securities are acting as joint book-running managers.

What option do the underwriters have regarding the stock offering?

The underwriters have a 30-day option to purchase up to an additional 720,000 shares.