- Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) entered into a Revenue Interest Financing Agreement with HealthCare Royalty Partners for a total investment of $100 million.
- Rhythm intends to use the proceeds to support global commercialization efforts for its newly approved Imcivree (setmelanotide) and ongoing clinical development.
- With this new approval, Imcivree is indicated for chronic weight management in 6 years old and older with monogenic or syndromic obesity due to proopiomelanocortin, proprotein convertase subtilisin/kexin type 1 or leptin receptor deficiency, or Bardet-Biedl syndrome (BBS).
- Rhythm will receive an initial investment of $37.5 million due to the FDA approval of Imcivree in BBS.
- The additional investment of $37.5 million will follow the European approval of Imcivree for BBS, which is anticipated in 2H of 2022.
- The final investment of $25 million will be payable upon Rhythm's achievement of certain agreed sales milestones in 2023.
- HealthCare Royalty will receive a tiered royalty based on global Imcivree sales.
- Price Action: RYTM shares are down 7.69% at $3.60 during the premarket session on the last check Friday.
