Rhythm Pharmaceuticals Inc. (RYTM) stock surged 5.58% in pre-market trading on Tuesday, driven by a combination of better-than-expected second-quarter financial results and encouraging preliminary data from a Phase 2 trial of its RM-718 therapy.

The company reported a Q2 loss of $(0.73) per share, beating the analyst consensus estimate of $(0.82) by 10.98%. Quarterly product revenue reached $71.255 million, exceeding the $67.277 million estimate and marking a 46.91% increase from the same period last year. The net loss was also narrower than IBES estimates.

In parallel, Rhythm announced preliminary Phase 2 data showing that RM-718 demonstrated a positive efficacy signal in acquired hypothalamic obesity, with a mean BMI reduction of 11.6% at week 16. The treatment was generally well tolerated, with the most common adverse events being injection site reactions, nausea, and vomiting.