AstraZeneca made $10B bid for Rhythm, WSJ reports

AstraZeneca ↘ 0.87% made an offer of about $10 billion for Rhythm Pharmaceuticals ↗ 1.13%, a company that treats rare genetic forms of obesity, as reported by The Wall Street Journal News Corp ↗ 0.76% on Wednesday, November 4. The paper's sources said the British drugmaker offered $124 a share last month. Rhythm's stock rose 28% to close at $110.68 after the news, which gave the company a market value of about $7.64 billion, Reuters reported.reuters.com+1

Three people familiar with the matter told Reuters that the proposal is non-binding. They said it is worth as much as $134 a share once milestone payments are included. Two of them said AstraZeneca would make the purchase through Alexion, the rare-disease business it bought for $39 billion in 2021. An AstraZeneca spokesperson declined to comment, and Rhythm did not respond to requests for comment.live.euronext.com

A Renewed Pursuit

The Journal reported that AstraZeneca had shown interest in Rhythm before and returned to it in recent months, according to Reuters. The $124 price is about 43% above Rhythm's Tuesday close of $86.44. Wednesday was the stock's best day since July 2025, Stocktwits reported via Yahoo Finance.finance.yahoo.com+1

The approach comes as Chief Executive Pascal Soriot tries to get investors focused on growth again after a difficult few months. During that time the company had setbacks in clinical trials, and reports of a possible large deal with Bristol Myers Squibb Bristol-Myers Squibb Company ↘ 0.70% weighed on its shares, Reuters reported.live.euronext.com

What Rhythm Brings

Rhythm's main product is Imcivree (setmelanotide), which is approved for acquired hypothalamic obesity, Bardet-Biedl syndrome and certain genetic deficiencies. The company reported third-quarter 2026 net product revenue of $92.1 million, up 29% from the prior quarter, driven mainly by the U.S. launch for hypothalamic obesity, according to Yahoo Finance. In March, the FDA approved Imcivree for a rare form of obesity caused by brain damage, making it the first U.S. treatment for that condition, Reuters noted. Rhythm is also developing bivamelagon, an oral drug licensed from LG Chem, and RM-718, a weekly injection, per Yahoo Finance.finance.yahoo.com+1

Racing Into Obesity

Drugmakers are competing for a place in the obesity market, where demand for Novo Nordisk ↘ 0.35% and Eli Lilly ↘ 0.04% treatments has fueled expectations that annual sales could top $100 billion within a decade, Reuters reported. Rhythm's drugs target rare genetic forms of obesity rather than the broad weight-loss market. Even so, buying the company would give AstraZeneca an established commercial business in the field while adding to its rare-disease portfolio. AstraZeneca has already made other obesity moves, including an early-2026 alliance with China's CSPC and the purchase of SixPeaks Bio, Yahoo Finance reported. Neither company has publicly confirmed any talks.live.euronext.com+1