Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $959.66M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 460.30%
• EPS Growth: 33.03%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 71,138,440
• 10 Day Avg. Volume: 1,061,549
• 30 Day Avg. Volume: 1,264,126
• PEG Ratio: -0.04
• Price to Book (P/B): -2.02
• Price to Sales (P/S): 9.28
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 8.91
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: -6.44
• 1Y Price Target: $25.00
• Price Target Upside: 88.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $14.00 ▲(5.42% Upside)

Phathom Pharmaceuticals has a mixed outlook. The strong performance in the latest earnings call, with significant revenue growth and cost reductions, is a positive factor. However, the company's financial instability, negative valuation metrics, and reliance on external financing pose significant risks. Technical indicators show positive momentum, but the financial challenges weigh heavily on the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand for Phathom's products, enhancing its competitive position in the gastrointestinal sector.

Operational Efficiency

Reducing operating expenses significantly improves Phathom's operational efficiency, potentially leading to better profitability and cash flow management.

Leadership Changes

The appointment of experienced leadership can drive strategic initiatives and strengthen financial management, supporting long-term growth and stability.

Negative Factors

Financial Instability

Negative equity reflects high liabilities, posing risks to financial stability and limiting the company's ability to finance growth or withstand economic downturns.

Cash Flow Challenges

Persistent negative cash flow indicates inefficiencies in converting revenue into cash, which may hinder the company's ability to fund operations and invest in growth.

Supply Chain Uncertainty

Supply chain uncertainties can disrupt product availability, affecting sales and customer satisfaction, and potentially impacting long-term market presence.

Phathom Pharmaceuticals Business Overview & Revenue Model

Company Description

Phathom Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada to vonoprazan, a potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan, which is in Phase III clinical trials for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. Phathom Pharmaceuticals, Inc. was incorporated in 2018 and is headquartered in Florham Park, New Jersey.

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 is facing financial challenges with significant net losses and negative cash flows. Despite revenue growth, the company has a negative net profit margin and high liabilities compared to assets, indicating financial instability.

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	147.19M	55.25M	682.00K	0.00	0.00	0.00
Gross Profit	128.42M	47.28M	515.00K	-620.00K	-521.00K	-300.00K
EBITDA	-203.56M	-261.52M	-159.05M	-171.82M	-134.56M	-124.19M
Net Income	-274.55M	-334.33M	-201.59M	-223.01M	-148.09M	-133.32M
Balance Sheet
Total Assets	240.29M	378.32M	413.84M	164.81M	189.43M	295.11M
Cash, Cash Equivalents and Short-Term Investments	135.16M	297.26M	381.39M	155.38M	183.26M	287.50M
Total Debt	2.71M	554.95M	139.03M	97.07M	91.34M	49.02M
Total Liabilities	662.82M	631.90M	486.60M	239.62M	117.28M	100.84M
Stockholders Equity	-422.53M	-253.58M	-72.76M	-74.81M	72.16M	194.27M
Cash Flow
Free Cash Flow	-225.25M	-266.90M	-139.21M	-147.57M	-148.94M	-70.73M
Operating Cash Flow	-225.23M	-266.77M	-137.58M	-146.53M	-148.62M	-69.69M
Investing Cash Flow	-147.00K	-135.00K	-1.63M	-1.04M	-328.00K	-1.04M
Financing Cash Flow	25.86M	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 13.28 is below the 20-day moving average (MA) of 13.32, above the 50-day MA of 12.41, and above the 200-day MA of 8.12, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.77 is Positive, 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
PHAT	61 Neutral	$959.66M	―	―	―	460.30%	33.03%
URGN	56 Neutral	$916.49M	―	―	―	10.85%	-1.41%
ZBIO	55 Neutral	$1.26B	―	-88.40%	―	―	―
TSHA	52 Neutral	$1.17B	―	-64.93%	―	-36.36%	-945.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABUS	51 Neutral	$862.64M	―	-52.82%	―	53.23%	35.32%
GERN	46 Neutral	$733.72M	―	-29.57%	―	522.13%	62.68%

Phathom Pharmaceuticals Corporate Events

Phathom Pharmaceuticals Reports Strong Q3 2025 Growth

Phathom Pharmaceuticals, Inc., a biopharmaceutical company specializing in gastrointestinal disease treatments, has reported its financial results for the third quarter of 2025, showcasing significant growth and strategic advancements. The company, known for its innovative VOQUEZNA® treatments, continues to strengthen its position in the GI sector.

Phathom Pharmaceuticals’ EoE Study: A Potential Game-Changer?

Study Overview: Phathom Pharmaceuticals, Inc. is conducting a Phase 2 study titled A Phase 2, Randomized, Double-Blind, Multi-Center Study in Adult Subjects With Eosinophilic Esophagitis (EoE) to Evaluate the Safety and Efficacy of Vonoprazan 20 mg Compared to Placebo After 12 Weeks and to Evaluate the Safety and Efficacy of Vonoprazan 20 mg Up to 24 Weeks. The study aims to assess the efficacy of vonoprazan 20 mg once daily compared to a placebo in reducing eosinophilic histologic response in adult participants with EoE.

Phathom Pharmaceuticals’ Vonoprazan Pregnancy Study: A Market Game Changer?

Phathom Pharmaceuticals, Inc. is conducting an observational study titled ‘Vonoprazan Pregnancy Registry: An Observational Study of the Safety of Vonoprazan Exposure in Pregnant Women and Their Offspring.’ The primary objective is to assess the safety of vonoprazan exposure in pregnant women by comparing maternal, fetal, and infant outcomes with those of a cohort not exposed to the drug. This study is significant as it aims to provide crucial safety data for vonoprazan, a treatment for conditions like erosive esophagitis and heartburn, during pregnancy.

Phathom Pharmaceuticals Publishes Phase 3 Trial Results

On October 25, 2025, Phathom Pharmaceuticals announced the publication of additional analyses from its Phase 3 pHalcon-NERD-301 trial in the American Journal of Gastroenterology, highlighting the effectiveness of VOQUEZNA® (vonoprazan) tablets in treating nighttime symptoms of Non-Erosive Reflux Disease (NERD). The trial demonstrated that VOQUEZNA significantly improved the percentage of heartburn-free nights and was generally well tolerated, offering a promising alternative for patients who experience inadequate relief from existing treatments. This development could enhance Phathom’s positioning in the gastrointestinal treatment market by addressing a significant gap in current GERD therapies.

The most recent analyst rating on (PHAT) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals Appoints New Chief Financial Officer

On October 6, 2025, Phathom Pharmaceuticals appointed Sanjeev Narula as Chief Financial and Business Officer, succeeding Robert Breedlove as the principal financial officer. Mr. Narula’s extensive experience includes roles at Intra-Cellular Therapies, Viatris Inc., and Pfizer, bringing significant financial leadership to Phathom. His appointment is accompanied by a comprehensive employment agreement that outlines his compensation, severance benefits, and stock options, potentially impacting the company’s strategic financial management and stakeholder interests.

The most recent analyst rating on (PHAT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Phathom Pharmaceuticals stock, see the PHAT Stock Forecast page.

Phathom Pharmaceuticals’ Earnings Call Highlights Growth and Challenges

Phathom Pharmaceuticals’ recent earnings call exuded a positive sentiment, underscored by robust growth in prescriptions and revenue, a strong financial standing, and effective cost-saving strategies. Despite these achievements, the company faces challenges such as potential supply disruptions and strategic shifts in sales focus.

Phathom Pharmaceuticals Reports Strong Q2 Growth

Phathom Pharmaceuticals, Inc. is a biopharmaceutical company specializing in the development and commercialization of innovative treatments for gastrointestinal diseases, with a focus on their flagship product, VOQUEZNA®.