Rhythm’s CTO Sells Shares: A Tale of Options and Opulence

On November 3, 2025, Joseph Shulman, the Chief Technical Officer of Rhythm Pharmaceuticals (RYTM +1.84%), performed a delicate dance with his stock options, exercising 9,748 shares and promptly selling them in the open market, as revealed by an SEC Form 4 filing. A transaction so precise, it might have been choreographed by a Soviet ballet troupe.

The Transaction Unveiled

Metric	Value
Shares sold	9,748
Transaction value	~$1.1 million
Post-transaction shares	8,509
Post-transaction value (direct ownership)	~$967,800

Transaction value calculated using SEC Form 4 weighted average purchase price ($115.24); post-transaction value based on Nov. 3, 2025 market close ($967,813.66).

The Enigma of Shulman’s Moves

How does the transaction size compare to Joseph Shulman’s prior open-market sales?
The 9,748 shares sold are a veritable avalanche compared to Shulman’s historical median of 2,954 shares per transaction. Yet, this is less a tale of excess and more a story of dwindling holdings-his direct ownership has shrunk by 91.6% since July 2024, like a snowball in a sauna.
What is the context and structure of this derivative transaction?
A masterclass in financial alchemy: 9,748 fully vested stock options were converted into cash, with no lingering options left. A clean sweep, if ever there was one.
What proportion of Shulman’s direct holdings was sold in this transaction?
Not a single share from his pre-existing holdings was touched. The sale was a purely transactional affair, akin to swapping a bag of potatoes for a sack of turnips.
How does the transaction align with recent stock performance and valuation?
Sold at $115.24, just a hair above the closing price of $113.74. A shrewd move, considering the stock’s 57.21% surge over the past year-a feast for the financially savvy.

Company Overview

Metric	Value
Price (as of market close 11/03/25)	$115.24
Market capitalization	$6.69 billion
Revenue (TTM)	$174.33 million
1-year price change	57.21%

* 1-year price change calculated using November 3rd, 2025 as the reference date.

The Company in Brief

Specializes in IMCIVREE, a therapy for rare genetic obesity disorders, and setmelanotide, a drug in development for additional rare obesity indications.
Revenue streams are heavily reliant on IMCIVREE, operating within a niche market of high-need patients.
Targets rare genetic obesity syndromes through partnerships with healthcare providers, navigating a labyrinth of medical bureaucracy.

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical entity, operates in the shadow of its flagship product, IMCIVREE. Its strategy is as narrow as a Russian alleyway, focusing on rare diseases where competition is sparse but the stakes are high. With a pipeline of setmelanotide indications, the company bets on the adage: “The more obscure, the more profitable.”

The Foolish Take

Insider transactions, like the one orchestrated by Shulman, are as enigmatic as a Tolstoy novel. They may signal confidence, or they may be the result of a man with a spreadsheet and a penchant for risk. The sale of 9,748 shares at $115.24 is a numbers game, but the real question is whether Rhythm can sustain its 57.21% annual return without a miracle.

IMCIVREE, approved five years ago for three rare conditions, now targets Bardet-Biedl Syndrome, a condition affecting 1,500-2,500 patients. A noble endeavor, but even the rarest of diseases can’t sustain a $6.69 billion market cap without a steady flow of cash. Rhythm ended September with $416 million in the bank, a sum that feels as precarious as a dachshund on a trampoline.

Glossary

Form 4: The SEC’s version of a gossip column, revealing who’s buying, selling, or quietly plotting.
Option exercise: A financial ballet, transforming paper into gold with a flick of the wrist.
Open-market transaction: A public auction of shares, where the highest bidder wins.
Vested stock options: The keys to the kingdom, now in the hands of the fortunate.
Direct ownership: Shares held personally, not hidden in the shadows of trusts.
Outstanding shares: The total number of shares floating in the market, like fish in a vast ocean.
Weighted average price: A statistical sleight of hand, averaging prices with a touch of elegance.
Derivative transaction: A contract based on an underlying asset, like a promise wrapped in a financial envelope.
Monetize: Converting assets into cash, a skill as old as the hills.
Specialty pharmaceutical model: A business strategy as precise as a surgeon’s scalpel.
Pipeline: The lifeblood of a biotech company, a queue of drug candidates waiting for their moment.
TTM: The 12-month period ending with the most recent quarterly report, a financial compass.

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