Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $729.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: 1049.81%
• EPS Growth: 7.85%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.05
• Shares Outstanding: 70,943,710
• 10 Day Avg. Volume: 1,056,497
• 30 Day Avg. Volume: 1,018,345
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 13.68
• Enterprise Value/Gross Profit: 15.86
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $20.13
• Price Target Upside: 95.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: $10.00 ▼(-2.72% Downside)

Phathom Pharmaceuticals' overall stock score is driven by financial instability due to significant losses and negative cash flows. However, positive technical indicators and a favorable earnings call with strong growth and cost-saving measures provide some optimism. The stock's valuation remains challenging, but FDA exclusivity for VOQUEZNA supports long-term potential.

Positive Factors

FDA Approval

FDA's decision to approve the company's Citizen's Petition and recognize Voquezna's full 10-year exclusivity removes a big overhang on the stock.

Market Confidence

Investor sentiment following the NCE announcement demonstrated a vote of confidence, with PHAT shares closing up approximately 90%.

Revenue Growth

The company has demonstrated sequential revenue growth while utilizing strategic cost reductions.

Negative Factors

Exclusivity Concerns

Shares were severely punished—beyond what was the underlying value with only two years of exclusivity lost.

Market Valuation

PHAT's current market cap is considered to undervalue Voquezna's revenue potential.

Phathom Pharmaceuticals Business Overview & Revenue Model

Company Description

Phathom Pharmaceuticals (PHAT) is a biopharmaceutical company focused on developing and commercializing innovative therapies for gastrointestinal diseases. The company primarily targets conditions such as peptic ulcer disease and gastroesophageal reflux disease (GERD) with its lead product candidate, Vonoprazan, a novel potassium-competitive acid blocker designed to provide improved efficacy and tolerability compared to traditional therapies. Phathom operates in the pharmaceuticals sector, emphasizing research, development, and potential commercialization of medications that enhance patient outcomes in digestive health.

How the Company Makes Money

Phathom Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products, particularly Vonoprazan, once it receives regulatory approval and gains market access. The company may also explore partnerships with larger pharmaceutical firms for co-development and distribution agreements, which can provide upfront payments, milestone payments, and royalties on sales. Additionally, the company's revenue stream could be bolstered by securing licensing agreements and collaborations that leverage its research capabilities and product pipeline, allowing it to monetize its intellectual property and scientific advancements.

Phathom Pharmaceuticals Financial Statement Overview

Summary

Phathom Pharmaceuticals exhibits significant revenue growth but faces substantial net losses and negative cash flows. The negative equity and high financial leverage underscore financial instability, despite maintaining financing cash flows.

Income Statement

Phathom Pharmaceuticals has shown significant revenue growth, with TTM (Trailing-Twelve-Months) revenue increasing to $81.86 million from $55.25 million annually. However, the company is experiencing substantial losses, with a negative net profit margin and EBIT margin in both TTM and annual reports. The gross profit margin is strong at approximately 86.2% in TTM, but the net loss remains a concern, impacting the overall profitability.

Balance Sheet

The balance sheet indicates a negative stockholders' equity of $338.38 million, reflecting high liabilities compared to assets. Total debt has reduced, but the company still faces a high debt-to-equity ratio due to negative equity. This presents a risk of instability. The equity ratio is also negative, further emphasizing the financial leverage and instability concerns.

Cash Flow

Operating cash flow remains negative, with a worsening trend in TTM at -$282.68 million. Free cash flow also decreased, indicating potential cash flow challenges. However, the company has managed to maintain financing cash flows, which slightly offsets the negative operating cash flow impact. The operating cash flow to net income ratio reflects inefficiency in converting income to cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.25M	682.00K	0.00	0.00	0.00
Gross Profit	47.28M	515.00K	-620.00K	-521.00K	-300.00K
EBITDA	-261.52M	-159.05M	-171.82M	-134.56M	-124.19M
Net Income	-334.33M	-201.59M	-223.01M	-148.09M	-133.32M
Balance Sheet
Total Assets	378.32M	413.84M	164.81M	189.43M	295.11M
Cash, Cash Equivalents and Short-Term Investments	297.26M	381.39M	155.38M	183.26M	287.50M
Total Debt	201.91M	139.03M	97.07M	91.34M	49.02M
Total Liabilities	631.90M	486.60M	239.62M	117.28M	100.84M
Stockholders Equity	-253.58M	-72.76M	-74.81M	72.16M	194.27M
Cash Flow
Free Cash Flow	-266.90M	-139.21M	-147.57M	-148.94M	-70.73M
Operating Cash Flow	-266.77M	-137.58M	-146.53M	-148.62M	-69.69M
Investing Cash Flow	-135.00K	-1.63M	-1.04M	-328.00K	-1.04M
Financing Cash Flow	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAT, the sentiment is Positive. The current price of 10.28 is above the 20-day moving average (MA) of 8.81, above the 50-day MA of 8.84, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 87.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHAT.

Phathom Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	74 Outperform	$600.18M	6.18	376.09%	―	105.62%	―
TRDA	60 Neutral	$190.95M	7.36	-18.12%	―	-66.80%	-157.68%
Sector *	60 Neutral	HK$18.14B	4.94	-4.00%	3.36%	10.19%	-23.62%
PHAT	56 Neutral	$729.30M	―	181.41%	―	1049.81%	7.85%
AMLX	56 Neutral	$697.29M	―	-87.42%	―	-100.08%	-2.45%
BNTC	47 Neutral	$312.38M	―	-48.57%	―	-100.00%	83.98%
ALLO	43 Neutral	$225.29M	―	-59.60%	―	-100.00%	31.43%

Phathom Pharmaceuticals Corporate Events

Phathom Pharmaceuticals Gains FDA Exclusivity for VOQUEZNA

On June 16, 2025, Phathom Pharmaceuticals announced that the FDA updated the Orange Book to reflect a full 10-year period of non-patent New Chemical Entity exclusivity for VOQUEZNA tablets. This correction confirms VOQUEZNA’s exclusivity through May 3, 2032, supporting its long-term commercial potential and aligning with statutory requirements.

The most recent analyst rating on (PHAT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals Holds Annual Stockholders Meeting

On June 3, 2025, Phathom Pharmaceuticals held its Annual Meeting of Stockholders, where key decisions were made regarding the election of directors, ratification of the accounting firm, and executive compensation. The stockholders elected Class III directors, ratified Ernst & Young LLP as the accounting firm for 2025, approved executive compensation, and decided to hold annual votes on executive compensation, aligning with the board’s recommendations.

The most recent analyst rating on (PHAT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals Gains FDA Approval for VOQUEZNA® Exclusivity

On June 6, 2025, Phathom Pharmaceuticals announced that the FDA approved their Citizen Petition, filed in December 2024, to correct the Orange Book and recognize a 10-year New Chemical Entity exclusivity for VOQUEZNA® (vonoprazan) tablets, extending through May 3, 2032. This approval enhances Phathom’s market position by securing extended exclusivity for their product, potentially impacting their commercialization strategy and competitive landscape in the gastrointestinal treatment market.

The most recent analyst rating on (PHAT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.