Rhythm Pharma rises as rare obesity disorder drug meets main goal of late-stage study

Shares of drugmaker Rhythm Pharmaceuticals RYTM.O rise 7% to $50.22 premarket

RYTM says its experimental drug to treat a rare obesity disorder met the main goal of a late-stage study

The therapy setmelanotide showed a significant reduction in body mass index in both adult and pediatric patients compared to placebo

Hypothalamic obesity refers to excess weight gain that may follow from an injury to hypothalamus, a brain region with many important functions

Rhythm estimates there are 5,000 to 10,000 people living with hypothalamic obesity in the U.S.

The late-stage study data is "above expectations" and RYTM shares to trade "considerably higher", says brokerage Stifel

Setmelanotide is currently approved under the brand name Imcivree to treat genetic obesity in adults and children aged two years and older

As of last close, shares down 16.1% YTD