Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $742.82M
• Dividend Yield: N/A
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: 3055.71%
• EPS Growth: -18.80%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -1.31
• Shares Outstanding: 69,814,120
• 10 Day Avg. Volume: 8,117,409
• 30 Day Avg. Volume: 4,044,753
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.47
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: $19.88
• Price Target Upside: 86.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $10.00 ▼(-6.02%Downside)

Phathom Pharmaceuticals faces significant financial challenges, with high net losses and negative cash flows weighing heavily on its score. Technical analysis shows positive momentum, but valuation concerns persist due to negative profitability metrics. Recent corporate events, including FDA approval for exclusivity, offer some positive outlook, but overall instability remains a concern.

Positive Factors

Innovation

VOQUEZNA acts as a novel and differentiated potassium competitive acid blocker (PCAB) for GERD and NERD patients, representing the first innovation in GERD in decades.

Market Confidence

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

Regulatory 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.

Negative Factors

C-Suite Changes

A number of C-suite changes were announced, including the departure of the COO, CCO, and CFO, effective within a few weeks.

Target Price Reduction

Strategic updates have led to a reduction in the price target from $28 to $20 per share.

Phathom Pharmaceuticals Business Overview & Revenue Model

Company Description

Phathom Pharmaceuticals (PHAT) is a biopharmaceutical company focused on the development and commercialization of novel treatments for gastrointestinal (GI) diseases. The company operates primarily in the pharmaceutical sector with a commitment to addressing unmet medical needs in the GI space. Phathom's core product portfolio includes innovative therapies designed to improve the lives of patients suffering from acid-related disorders and other GI conditions.

How the Company Makes Money

Phathom Pharmaceuticals generates revenue through the development, approval, and commercialization of its pharmaceutical products. The company's primary revenue stream is expected to come from the sales of its lead product candidates once they receive regulatory approval and enter the market. Phathom is involved in strategic partnerships and licensing agreements, which can provide upfront payments, milestone payments, and royalties, contributing to its earnings. These partnerships are crucial for funding research and development activities and for gaining access to additional resources and expertise necessary for successful product commercialization.

Phathom Pharmaceuticals Financial Statement Overview

Summary

Phathom Pharmaceuticals exhibits significant revenue growth, but substantial net losses, negative cash flows, and negative equity highlight financial instability. Reliance on external financing further increases risk.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
81.86M	55.25M	682.00K	0.00	0.00	0.00
	Gross Profit
70.59M	47.28M	515.00K	-620.00K	-521.00K	-300.00K
	EBIT
-286.38M	-277.47M	-167.31M	-172.44M	-135.08M	-125.67M
	EBITDA
-274.92M	-261.52M	-159.05M	-171.82M	-134.56M	-124.19M
	Net Income Common Stockholders
-251.47M	-334.33M	-201.59M	-223.01M	-148.09M	-133.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
212.31M	297.26M	381.39M	155.38M	183.26M	287.50M
	Total Assets
294.21M	378.32M	413.84M	164.81M	189.43M	295.11M
	Total Debt
203.56M	201.91M	139.03M	97.07M	91.34M	49.02M
	Net Debt
-8.75M	-95.35M	-242.36M	-58.31M	-91.92M	-238.48M
	Total Liabilities
632.58M	631.90M	486.60M	239.62M	117.28M	100.84M
	Stockholders Equity
-338.38M	-253.58M	-72.76M	-74.81M	72.16M	194.27M
Cash Flow		Free Cash Flow
-282.66M	-266.90M	-139.21M	-147.57M	-148.94M	-70.73M
	Operating Cash Flow
-282.68M	-266.77M	-137.58M	-146.53M	-148.62M	-69.69M
	Investing Cash Flow
-113.00K	-135.00K	-1.63M	-1.04M	-328.00K	-1.04M
	Financing Cash Flow
172.87M	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 10.64 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 4.65, and above the 200-day MA of 9.13, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 86.40 is Negative, neither overbought nor oversold. The STOCH value of 70.20 is Neutral, 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	77 Outperform	$366.74M	9.90	531.78%	―	68.74%	―
TRDA	61 Neutral	$288.07M	9.39	7.22%	―	5.74%	24.45%
AMLX	57 Neutral	$492.06M	―	-83.24%	―	-100.32%	-197.69%
PHAT	54 Neutral	$742.82M	―	181.41%	―	3055.71%	-18.80%
BNTC	54 Neutral	$432.61M	―	-48.57%	―	-100.00%	83.98%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
ALLO	43 Neutral	$293.10M	―	-59.60%	―	-100.00%	31.43%

Phathom Pharmaceuticals Corporate Events

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.

Phathom Pharmaceuticals Appoints Theodore Schroeder to Board

Phathom Pharmaceuticals has appointed Theodore R. Schroeder to its Board of Directors as a Class I director, effective April 16, 2025. Mr. Schroeder, with over 30 years of experience in drug development and commercialization, will serve on the audit committee and brings significant leadership experience from his previous roles at various pharmaceutical companies. His appointment is expected to strengthen the board with his extensive industry knowledge and leadership skills.

Phathom Pharmaceuticals Announces Leadership Transition in 2025

Phathom Pharmaceuticals announced a leadership transition effective April 1, 2025, with Steven Basta appointed as the new Chief Executive Officer, President, and Class I director, succeeding Terrie Curran who resigned for personal reasons. The company also adopted a 2025 Employment Inducement Incentive Award Plan to attract new talent, reserving 2,500,000 shares for equity awards. This strategic move aims to strengthen the company’s leadership and incentivize new hires, potentially impacting its market position and stakeholder interests.