Rhythm Shares Jump 28% on Reported AstraZeneca Takeover Bid

AstraZeneca has offered about $10 billion for Boston drugmaker Rhythm Pharmaceuticals, according to a Reuters report on Nov. 4 that cited three unnamed sources. Rhythm sells Imcivree, a drug for rare forms of obesity. Neither company has confirmed a deal.

What happened

Earlier on Nov. 4, The Wall Street Journal reported that AstraZeneca had offered $124 a share last month, according to Reuters. Rhythm stock ended the day at $110.68 after that report, a gain of 28%. Reuters put the company's market value at about $7.64 billion.

Later that day, Reuters reported a figure of up to $134 a share. That non-binding proposal counts milestone payments, the people said.

Two of them said a deal would be pursued through Alexion. AstraZeneca paid $39 billion for that rare disease unit in 2021. An AstraZeneca spokesperson declined to comment. Rhythm did not respond to Reuters.

The report came a day after Rhythm posted its third quarter results. The company said global Imcivree revenue was $92.1 million in the quarter. That was up 29% from the second quarter and compared with $51.3 million a year earlier.

Why it matters

In March, the FDA expanded the use of Imcivree. It approved Imcivree (setmelanotide) on March 19, 2026, for acquired hypothalamic obesity in patients aged 4 and older. Reuters described it as a rare form of obesity caused by brain damage. Rhythm said it had more than 700 patient start forms for this use by Sept. 30, from more than 500 prescribers.

The drug has also been cleared for this use in Japan, the UK and the European Union. Rhythm announced Health Canada approval for adults and children aged 4 and older on Sept. 22, 2026.

Imcivree is already on sale, so a deal would give AstraZeneca a product with revenue. According to Reuters, chief executive Pascal Soriot is trying to get investors to look again at growth. AstraZeneca, worth about $292 billion, has had some trial setbacks. Reuters also noted that the wider obesity drug market could top $100 billion a year in sales within a decade.

What it means for people in the industry

Rhythm said it had about $320.9 million in cash and short-term investments at the end of September. It said that was enough to fund its plans for at least 24 months. It also arranged a term loan of up to $750 million, led by HealthCare Royalty with Blackstone Life Sciences.

The company plans to start a pivotal phase 3 trial of bivamelagon, a next-generation drug candidate, in acquired hypothalamic obesity by the end of 2026. Neither the reports nor the company say anything about jobs.

What to watch: whether the two sides sign a binding agreement, and what a deal would mean for Rhythm's Boston team and its trial plans.

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Sources

• AstraZeneca made $10 billion offer for obesity drugmaker Rhythm, sources say, Reuters (via Yahoo Finance)
• Rhythm Pharmaceuticals Reports Third Quarter 2026 Financial Results and Business Update, Rhythm Pharmaceuticals (GlobeNewswire)