--- title: "2 Under-the-Radar Stocks That Could Soar" description: "Two under-the-radar biotech stocks, Terns Pharmaceuticals and Rhythm Pharmaceuticals, are highlighted for their potential in the anti-obesity market. Terns is developing TERN-601, an oral GLP-1 candid" type: "news" locale: "en" url: "https://longbridge.com/en/news/258240314.md" published_at: "2025-09-21T14:47:15.000Z" --- # 2 Under-the-Radar Stocks That Could Soar > Two under-the-radar biotech stocks, Terns Pharmaceuticals and Rhythm Pharmaceuticals, are highlighted for their potential in the anti-obesity market. Terns is developing TERN-601, an oral GLP-1 candidate, with results expected in Q4, while Rhythm focuses on weight management drugs for rare conditions, showing a 66.8% revenue increase. Both companies face risks but could see significant stock growth with successful clinical trials and regulatory approvals. While oncology is the largest therapeutic area in the pharmaceutical industry by revenue, the anti-obesity space has grabbed the most attention over the past couple of years. This niche is still in its infancy, though, and it is projected to grow rapidly at least through the end of the decade. Many drugmakers, both large and small, are seeking to make a significant impact in this area. The most successful ones will reap substantial financial benefits and perhaps generate market-crushing returns in the process. Two relatively unknown biotechs that are developing promising therapies in this field are **Terns Pharmaceuticals** (TERN -7.64%) and **Rhythm Pharmaceuticals** (RYTM -2.57%). These biotechs could soar provided they deliver solid progress. Here's what investors need to know. Image source: Getty Images. ## 1\. Terns Pharmaceuticals Terns Pharmaceuticals is a small-cap, clinical-stage biotech. One of the company's leading candidates is TERN-601, a mid-stage oral GLP-1 candidate. Terns Pharmaceuticals has recently initiated a 12-week phase 2 clinical trial for this medicine in weight loss. It expects data from it in the fourth quarter. Although several approved anti-obesity medicines are generating substantial sales, an oral option could address some remaining issues. Oral pills come with lower manufacturing costs than subcutaneous injections. With oral medications, drugmakers will have the opportunity to ramp up manufacturing and target even more patients, especially considering many are practically allergic to needles. TERN-601 is still just in mid-stage studies. And based on recent developments from competing biotech and pharmaceutical companies working on oral GLP-1 medicines, it won't be easy for Terns Pharmaceuticals to impress the market. However, if it can post strong results for TERN-601, Terns Pharmaceuticals' shares could soar later this year. Terns Pharmaceuticals does have other pipeline candidates. It is developing TERN-501 as a potential medicine for metabolic dysfunction-associated steatohepatitis and as a potential combination therapy that could enhance the efficacy of GLP-1 medicines. Terns Pharmaceuticals' TERN-701 is a potential cancer therapy in a phase 1 study, with an upcoming data readout scheduled for the fourth quarter. That said, Terns' performance will largely depend on progress related to TERN-601. And if this investigational medicine fails in mid-stage studies, the stock will plummet. So, although there is plenty of upside potential here, there is also above-average risk. Invest accordingly. ## 2\. Rhythm Pharmaceuticals Rhythm Pharmaceuticals is targeting a niche of the market for weight management drugs. The company is developing medicines that help patients with obesity due to various rare conditions. Rhythm's Imcivree, first approved in 2020, is indicated for weight management in patients with certain protein deficiencies. The medicine doesn't generate much sales, but it is making progress. In the second quarter, Rhythm Pharmaceuticals' revenue increased by 66.8% to $48.5 million. Recent clinical progress has made Rhythm's prospects more attractive. It reported strong phase 3 results for setmelanotide (the active ingredient in Imcivree) in patients with obesity resulting from hypothalamic damage. Rhythm Pharmaceuticals recently submitted regulatory applications for the medicine in this indication. It could earn this label expansion by the end of the year. Elsewhere, the company's bivamelagon also aced a phase 2 study in hypothalamic obesity. Rhythm Pharmaceuticals plans to initiate phase 3 studies for bivamelagon next year. Bivamelagon has the added advantage of being an oral medicine, whereas setmelanotide is administered via subcutaneous injection. Strong phase 3 results for bivamelagon could also jolt the stock. Rhythm's addressable market is relatively small. Between Imcivree's current indications and the potential new approvals and label expansions in hypothalamic obesity, the company is targeting a potential patient population of up to 35,500 patients in the regions it is focusing on: the U.S., Europe, and Japan. However, there is also a need for medications that target these conditions specifically -- most weight management medicines don't do that. There are no therapies approved for weight management in hypothalamic obesity, for example. Rhythm Pharmaceuticals could be the dominant player in these smaller weight management markets. That's before we add several other phase 2 and phase 3 clinical trials that could lead to even more label expansions for setmelanotide. Rhythm Pharmaceuticals remains somewhat risky. Clinical or regulatory setbacks with setmelanotide or bivamelagon could negatively impact the stock. But the company could deliver outstanding returns in the next five years, provided it can launch bivamelagon and add new indications to setmelanotide. ### Related Stocks - [TERN.US - Terns Pharmaceuticals](https://longbridge.com/en/quote/TERN.US.md) - [RYTM.US - Rhythm Pharma](https://longbridge.com/en/quote/RYTM.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Rhythm Pharma｜8-K：2025 财年 Q4 营收 57 百万美元超过预期 | | [Link](https://longbridge.com/en/news/272088207.md) | | 在 2025 年强劲的 IMCIVREE 收入指引后，评估 Rhythm Pharmaceuticals（RYTM）的估值 | Rhythm Pharmaceuticals (RYTM) 发布了其药物 IMCIVREE 的强劲初步收入指引，预计 2025 年第四季度的净产品收入约为 5700 万美元，比第三季度增长 11%，全年收入预计为 1.94 亿美元，较 20 | [Link](https://longbridge.com/en/news/272952447.md) | | VeraDermics 完成了 VDPHL01 用于男性型脱发的第二个关键性三期临床试验的入组工作 \| MANE 股票新闻 | Veradermics 已完成其第二阶段 III 临床试验的招募，该试验针对 VDPHL01，这是一种用于男性型脱发的口服治疗，参与者超过 1,000 名男性。初步试验的顶线数据预计将在 2026 年初公布，而确认性研究结果预计将在同年晚些 | [Link](https://longbridge.com/en/news/275318301.md) | | 癌症生物技术公司 Phio Pharmaceuticals 的股票飙升，因试验显示在皮肤癌患者中使用最高剂量时肿瘤被清除 | Phio Pharmaceuticals 的股票上涨了 51.11%，达到 1.36 美元，此次上涨是由于其皮肤癌药物 PH-762 的 1b 期试验结果积极，显示出 85% 的病理反应率，并且在六名患者中有四名实现了肿瘤完全清除。该公司计 | [Link](https://longbridge.com/en/news/275488227.md) | | 美股盘中速递：Mustang Bio 涨 16.03%，新任首席科学官与生物技术融资激发市场信心 | Mustang Bio 涨 16.03%；艾伯维涨 2.06%，成交额达到 9.9 亿美元；吉利德科学涨 2.07%，成交额达到 8.53 亿美元；安进涨 3.77%，成交额达到 8.12 亿美元；福泰制药涨 4.13%，市值达到 1212 | [Link](https://longbridge.com/en/news/275170630.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.