Jennifer Kayden Lee, Executive Vice President and Head of North America at Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), filed a Form 4 on August 14, 2026, reporting stock option exercises and a same-day sale of common stock executed on August 13, 2026.

Key Highlights

  • Option exercise 1: Lee exercised 35,000 stock options at an exercise price of $24.29 per share, granted November 9, 2020.
  • Option exercise 2: Lee exercised 21,601 stock options at an exercise price of $6.80 per share, granted February 9, 2022.
  • Sale: All 75,834 shares of common stock resulting from the two exercises were sold on August 13, 2026, at a price of $117.3818 per share.
  • Resulting ownership: Following the transactions, Lee reported 0 shares of common stock directly owned.
  • Remaining options: Lee retains 36,283 stock options with an exercise price of $24.29, expiring November 9, 2030, after the reported transactions.
  • Trading plan: The exercises and sale were made pursuant to a Rule 10b5-1 trading plan adopted by Lee on May 14, 2026.

Option Exercises and Full Share Sale Under 10b5-1 Plan

According to the filing, Lee exercised two separate tranches of stock options on August 13, 2026. The first involved 35,000 options with an exercise price of $24.29, originally granted on November 9, 2020. The filing states that 25% of those options vested on November 9, 2021, with the remaining 75% vesting in 12 substantially equal installments upon completion of each three full months of successive service. The second tranche covered 21,601 options at an exercise price of $6.80, granted February 9, 2022, which vested in 16 substantially equal installments upon completion of each three full months of service following the grant date.

The two exercises produced a combined total of 75,834 shares of common stock. The filing reports that all 75,834 shares were then sold on the same date, August 13, 2026, at $117.3818 per share, leaving Lee with zero directly owned shares of common stock following the reported transactions. Prior to the sale, Lee's beneficially owned share count had increased from 54,233 to 75,834 as a result of the sequential exercises, as reported in the filing.

The filing notes that all transactions were effected pursuant to a Rule 10b5-1 trading plan that Lee adopted on May 14, 2026. Following the reported transactions, Lee retains 36,283 stock options with a $24.29 exercise price expiring November 9, 2030, while the 21,601 options at $6.80, expiring February 8, 2032, were fully exercised and reduced to zero remaining.

What Was Disclosed

Lee, an officer of Rhythm Pharmaceuticals, exercised a total of 56,601 stock options in two tranches and sold all resulting 75,834 common shares at $117.3818 per share on August 13, 2026, under a pre-established Rule 10b5-1 plan.