Rhythm Restructures LG Chem Deal, Locks In Up to $750M KKR-Led Financing
RYTM sits 25% above its 52-week low of $74.5 on elevated volume (3.0× avg).
Summary
Rhythm amended its LG Chem license for bivamelagon, its oral MC4R agonist for rare obesity disorders. It will pay LG Chem $350 million in fixed payments over four years and swap the old low-to-mid single-digit royalties for a flat 1% royalty on global MC4R net sales — covering setmelanotide, bivamelagon and RM-718 — starting in 2029 or at first bivamelagon commercial sale. The $205 million in prior milestones survive, plus a new $200 million milestone if the MC4R portfolio hits $3 billion in annual global sales. To fund it, Rhythm lined up a five-year term loan of up to $750 million led by KKR's HealthCare Royalty with Blackstone: $500 million committed, a $250 million initial draw expected to close November 6, 2026, and another $259 million available by mutual agreement. The structure cuts future royalty leakage on the franchise but adds fixed cash obligations and debt ahead of the Q3 report due today at 8:00 AM ET.
At the time of this announcement, RYTM was trading at $93.44 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $74.50 to $122.20. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.