Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $959.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 1049.81%
• EPS Growth: 7.85%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 70,943,710
• 10 Day Avg. Volume: 1,006,305
• 30 Day Avg. Volume: 1,237,157
• 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: 1.17
• Enterprise Value/Revenue: 9.82
• Enterprise Value/Gross Profit: 11.30
• Enterprise Value/Ebitda: -4.31
• 1Y Price Target: $23.50
• Price Target Upside: 73.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $14.00 ▲(3.40% Upside)

Phathom Pharmaceuticals' overall score reflects significant financial challenges, with ongoing losses and negative cash flows weighing heavily. Despite strong technical momentum and positive earnings call guidance, the negative valuation metrics and financial instability are major concerns. The company's reliance on external financing and potential supply disruptions also pose risks.

Positive Factors

Revenue Growth

Phathom's strong revenue growth indicates successful market penetration and product adoption, essential for long-term sustainability and expansion.

Product Exclusivity

Securing product exclusivity until 2032 provides a competitive edge, ensuring market protection and potential revenue stability over the long term.

Strategic Sales Focus

Focusing on gastroenterologists enhances market penetration and prescription growth, leveraging expertise to drive deeper engagement and adoption.

Negative Factors

Financial Instability

Ongoing financial instability, with high losses and reliance on external funding, poses risks to long-term viability and operational flexibility.

Negative Cash Flow

Negative cash flow challenges the company's ability to fund operations internally, increasing dependency on external financing and impacting growth potential.

Potential Supply Disruption

Potential supply disruptions could impact product availability and sales, affecting customer trust and long-term market position.

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 significant financial challenges, with substantial net losses and negative cash flows. Despite revenue growth, the company has negative equity and relies heavily on financing activities, posing a risk if external funding becomes scarce.

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	114.04M	55.25M	682.00K	0.00	0.00	0.00
Gross Profit	99.11M	47.28M	515.00K	-620.00K	-521.00K	-300.00K
EBITDA	-259.55M	-261.52M	-159.05M	-171.82M	-134.56M	-124.19M
Net Income	-330.15M	-334.33M	-201.59M	-223.01M	-148.09M	-133.32M
Balance Sheet
Total Assets	250.22M	378.32M	413.84M	164.81M	189.43M	295.11M
Cash, Cash Equivalents and Short-Term Investments	149.57M	297.26M	381.39M	155.38M	183.26M	287.50M
Total Debt	574.50M	554.95M	139.03M	97.07M	91.34M	49.02M
Total Liabilities	656.05M	631.90M	486.60M	239.62M	117.28M	100.84M
Stockholders Equity	-405.83M	-253.58M	-72.76M	-74.81M	72.16M	194.27M
Cash Flow
Free Cash Flow	-274.63M	-266.90M	-139.21M	-147.57M	-148.94M	-70.73M
Operating Cash Flow	-274.69M	-266.77M	-137.58M	-146.53M	-148.62M	-69.69M
Investing Cash Flow	-164.00K	-135.00K	-1.63M	-1.04M	-328.00K	-1.04M
Financing Cash Flow	148.18M	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 13.54 is above the 20-day moving average (MA) of 12.76, above the 50-day MA of 12.20, and above the 200-day MA of 7.92, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 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
TSHA	―	$1.36B	―	-51.86%	―	-37.09%	58.96%
ZBIO	―	$1.27B	―	-88.40%	―	―	―
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHAT	―	$959.87M	―	―	―	1049.81%	7.85%
ABUS	―	$883.73M	-16.13	-52.82%	―	53.23%	35.32%
GERN	―	$784.76M	-9.28	-31.09%	―	11877.28%	63.14%
URGN	―	$915.10M	-5.96	―	―	10.85%	-1.41%

Phathom Pharmaceuticals Corporate Events

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®.