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Phathom Pharmaceuticals (PHAT)
NASDAQ:PHAT
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Phathom Pharmaceuticals (PHAT) AI Stock Analysis

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PHAT

Phathom Pharmaceuticals

(NASDAQ:PHAT)

Rating:60Neutral
Price Target:
$10.50
▼(-11.62% Downside)
Phathom Pharmaceuticals' overall stock score is primarily influenced by its financial instability, despite strong technical indicators and positive earnings call guidance. The company's strategic initiatives and FDA exclusivity are promising, but financial challenges remain a significant concern.
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.
Investor Sentiment
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
Market Challenges
The BlinkRx option gives prescribers and new patients a means to access VOQUEZNA therapy despite prospective coverage pushback.
Stock Volatility
Shares were severely punished—beyond what was the underlying value with only two years of exclusivity lost.

Phathom Pharmaceuticals (PHAT) vs. SPDR S&P 500 ETF (SPY)

Phathom Pharmaceuticals Business Overview & Revenue Model

Company DescriptionPhathom 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 MoneyPhathom 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong growth in prescription numbers and revenue, successful cost management, and a positive resolution regarding product exclusivity. However, there are potential challenges with supply disruptions and Medicare coverage. The strategic focus on gastroenterologists is expected to drive further growth.
Q2-2025 Updates
Positive Updates
Strong Prescription Growth
Over 580,000 VOQUEZNA prescriptions have been filled since launch, with a 49% growth in 14 weeks. In Q2, approximately 173,000 prescriptions were filled, marking a 36% growth over Q1.
Revenue and Cost Management
Reported $39.5 million in revenue for Q2, representing a 39% growth over Q1. Implemented cost savings initiatives mid-quarter, resulting in a $12 million reduction in Q2 non-GAAP OpEx compared to Q1.
Positive Exclusivity Resolution
Achieved a positive resolution to the citizens petition, securing exclusivity for VOQUEZNA tablets through May 2032, with potential extension to 2033.
Refocused Sales Strategy
Shifted sales focus to gastroenterologists, with 70% of prescriptions coming from GIs. This strategy is expected to drive deeper engagement and increase adoption.
Financial Stability
Ended the quarter with approximately $150 million in cash, with expectations to reach profitability by 2026 without additional equity financing.
Negative Updates
Potential Supply Disruption
Possible supply disruption in the VOQUEZNA triple pack due to clarithromycin tablets, though no commercial disruption experienced yet.
Medicare Market Challenges
Low percentage of Medicare patients achieve coverage, with many scripts ending up as cash pay through BlinkRx.
Company Guidance
During the Phathom Pharmaceuticals Second Quarter 2025 earnings call, the company reported significant growth and provided positive guidance for the year. Key metrics included a 39% increase in Q2 revenues to $39.5 million compared to Q1, driven by a 36% growth in VOQUEZNA prescriptions, totaling approximately 173,000 in the quarter. The company anticipates full-year 2025 revenues between $165 million and $175 million, exceeding analyst estimates. Phathom also highlighted its cost-saving initiatives, achieving a $12 million reduction in non-GAAP operating expenses from Q1. The company ended Q2 with $150 million in cash, expecting to reach profitability by 2026. The sales strategy pivot to focus on gastroenterologists was emphasized, with these specialists contributing 70% of VOQUEZNA prescriptions. Furthermore, Phathom plans to start a Phase II trial for eosinophilic esophagitis in Q4, with the potential for a future six-month pediatric exclusivity extension.

Phathom Pharmaceuticals Financial Statement Overview

Summary
Phathom Pharmaceuticals is experiencing significant financial challenges despite revenue growth. The company has substantial net losses, negative cash flows, and negative equity, indicating financial instability. Heavy reliance on financing activities poses a risk if external funding becomes scarce.
Income Statement
42
Neutral
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
35
Negative
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue81.86M55.25M682.00K0.000.000.00
Gross Profit70.59M47.28M515.00K-620.00K-521.00K-300.00K
EBITDA-274.92M-261.52M-159.05M-171.82M-134.56M-124.19M
Net Income-251.47M-334.33M-201.59M-223.01M-148.09M-133.32M
Balance Sheet
Total Assets294.21M378.32M413.84M164.81M189.43M295.11M
Cash, Cash Equivalents and Short-Term Investments212.31M297.26M381.39M155.38M183.26M287.50M
Total Debt203.56M554.95M139.03M97.07M91.34M49.02M
Total Liabilities632.58M631.90M486.60M239.62M117.28M100.84M
Stockholders Equity-338.38M-253.58M-72.76M-74.81M72.16M194.27M
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 Flow172.87M182.77M367.58M120.04M44.71M114.46M

Phathom Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.88
Price Trends
50DMA
9.69
Positive
100DMA
7.45
Positive
200DMA
7.13
Positive
Market Momentum
MACD
0.83
Negative
RSI
64.71
Neutral
STOCH
64.05
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 11.88 is above the 20-day moving average (MA) of 10.93, above the 50-day MA of 9.69, and above the 200-day MA of 7.13, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHAT.

Phathom Pharmaceuticals Risk Analysis

Phathom Pharmaceuticals disclosed 84 risk factors in its most recent earnings report. Phathom Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Phathom Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$689.87M7.32376.09%105.62%
60
Neutral
$840.68M181.41%1049.81%7.85%
57
Neutral
$889.89M-87.42%-100.08%-2.45%
51
Neutral
$7.91B-0.36-41.70%2.23%23.45%-1.86%
47
Neutral
$361.60M-48.57%-100.00%83.98%
42
Neutral
$250.73M-55.12%-100.00%30.91%
41
Neutral
$204.64M7.36-18.12%-66.80%-157.68%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHAT
Phathom Pharmaceuticals
11.88
-6.07
-33.82%
RIGL
Rigel
40.13
26.72
199.25%
BNTC
Benitec Biopharma
13.91
5.03
56.64%
ALLO
Allogene Therapeutics
1.11
-1.40
-55.78%
TRDA
Entrada Therapeutics Inc
5.22
-10.17
-66.08%
AMLX
Amylyx Pharmaceuticals Inc
9.95
7.75
352.27%

Phathom Pharmaceuticals Corporate Events

Product-Related AnnouncementsRegulatory Filings and Compliance
Phathom Pharmaceuticals Gains FDA Exclusivity for VOQUEZNA
Positive
Jun 16, 2025

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.

Executive/Board ChangesShareholder Meetings
Phathom Pharmaceuticals Holds Annual Stockholders Meeting
Neutral
Jun 9, 2025

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.

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Phathom Pharmaceuticals Gains FDA Approval for VOQUEZNA® Exclusivity
Positive
Jun 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025