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Phathom Pharmaceuticals (PHAT)
NASDAQ:PHAT
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Phathom Pharmaceuticals
(NASDAQ:PHAT)
47Neutral
Positive Factors
Earnings Performance
Voquezna revenue reported at $29.7M was well above the FactSet consensus of $24.9M, indicating strong financial performance.
Leadership Changes
Steven Basta, a healthcare veteran with over 25 years' leadership experience, has taken over as CEO, potentially steering the company towards new growth opportunities.
Market Potential
Over 300,000 filled prescriptions for VOQUEZNA demonstrate strong market penetration and growth potential.
Negative Factors
Financial Performance
First quarter trends are softer than expected, affected by typical seasonality factors such as holiday impact, a shortened month, and deductible resets.
Patent Exclusivity
Elevated uncertainty due to the company's unsuccessful efforts to extend exclusivity to 2032, resulting in a forecasted loss of exclusivity in 2030.
Stock Performance
PHAT shares have been under significant pressure due to the uncertainty around Voquezna's patent exclusivity.
Phathom Pharmaceuticals (PHAT) vs. S&P 500 (SPY)
Market Cap
$308.49M
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth8001.47%
EPS Growth-37.69%
CountryUS
Employees427
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.35
Shares Outstanding69,636,970
10 Day Avg. Volume1,420,160
30 Day Avg. Volume1,389,544
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.85
Price to Cash Flow (P/CF)-1.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.43Price Target Upside383.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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 through the development, commercialization, and sales of its pharmaceutical products, primarily focusing on its lead product candidate, vonoprazan. The company plans to earn revenue by obtaining regulatory approval for its products and then marketing them to healthcare providers and patients. Additionally, Phathom may engage in strategic partnerships and licensing agreements with other pharmaceutical companies to expand the reach and distribution of its products. These collaborations could provide upfront payments, milestone payments, and royalties on future sales, contributing significantly to the company's earnings. However, as of the latest available data, the company may not yet be generating significant revenue, being in the clinical development stage for its lead product.
Phathom Pharmaceuticals Financial Statement Overview
Summary
Phathom Pharmaceuticals shows promising revenue growth but faces significant financial challenges, including sustained losses and reliance on external funding. The negative equity and cash flow difficulties highlight a risky financial position. However, the company's strong cash reserves provide some buffer against short-term obligations, crucial for ongoing R&D and operational expansion.Income Statement
Phathom Pharmaceuticals showed substantial revenue growth from 2023 to 2024, with an increase from $682,000 to $55.25 million. Despite this, the company remains unprofitable, with a negative net income and negative EBIT and EBITDA margins, reflecting ongoing operational challenges typical in biotechnology firms in early stages of commercialization.45
Neutral
Balance Sheet
The company's balance sheet reflects high leverage with negative stockholders' equity and a significant debt-to-equity ratio, indicating financial instability. The equity ratio is negative due to negative equity, highlighting potential liquidity risks. However, the company maintains a strong cash position relative to its debt.30
Negative
Cash Flow
Cash flows are concerning, with negative operating and free cash flow, suggesting the company is heavily reliant on financing activities to sustain operations. The operating cash flow to net income ratio is distorted due to zero net income, emphasizing the need for careful cash management to support growth.40
Negative
| 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 | EBIT |
| -277.47M | -167.31M | -172.44M | -135.08M | -125.67M | EBITDA |
| -261.52M | -159.05M | -171.82M | -134.56M | -124.19M | Net Income Common Stockholders |
| -334.33M | -201.59M | -223.01M | -148.09M | -133.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 297.26M | 381.39M | 155.38M | 183.26M | 287.50M | Total Assets |
| 378.32M | 413.84M | 164.81M | 189.43M | 295.11M | Total Debt |
| 501.00K | 139.03M | 97.07M | 91.34M | 49.02M | Net Debt |
| -296.76M | -242.36M | -58.31M | -91.92M | -238.48M | 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 | |||
| -266.77M | -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
Negative
4.43
Price Trends
5.54
Negative
6.76
Negative
10.65
Negative
Market Momentum
0.12
Negative
41.95
Neutral
52.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAT, the sentiment is Negative. The current price of 4.43 is below the 20-day moving average (MA) of 5.52, below the 50-day MA of 5.54, and below the 200-day MA of 10.65, indicating a bearish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHAT.
Phathom Pharmaceuticals Risk Analysis
Phathom Pharmaceuticals disclosed 82 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $318.13B | 75.24 | 61.94% | 3.58% | 3.71% | -12.14% | |
64 Neutral | $1.77B | 24.09 | 7.55% | ― | 8.94% | 5171.26% | |
64 Neutral | $123.99B | ― | -3.15% | ― | 11.64% | -114.72% | |
57 Neutral | $166.66M | 95.37 | -8.02% | ― | -20.63% | ― | |
48 Neutral | $6.36B | 1.24 | -44.94% | 2.70% | 18.33% | 1.47% | |
47 Neutral | $308.49M | ― | 181.41% | ― | 8001.47% | -37.69% | |
41 Neutral | $2.61M | ― | 1155.92% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
PHAT
Phathom Pharmaceuticals
4.43
-6.04
-57.69%
IRWD
Ironwood Pharma
1.03
-6.98
-87.14%
SUPN
Supernus Pharmaceuticals
31.76
-0.24
-0.75%
VRTX
Vertex Pharmaceuticals
475.49
75.26
18.80%
ABBV
AbbVie
179.84
18.21
11.27%
RDHL
RedHill Biopharma
2.70
-8.65
-76.21%
Phathom Pharmaceuticals Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -27.14% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong prescription growth, market positioning, and revenue performance for VOQUEZNA, but also addressed challenges such as potential legal issues with the FDA and anticipated Q1 revenue softness.Highlights
VOQUEZNA FDA Approval and Market Positioning
Phathom Pharmaceuticals received FDA approval for VOQUEZNA for non-Erosive GERD, securing broad commercial access and launching a full-scale consumer campaign.
Strong Prescription Growth
Over 300,000 VOQUEZNA prescriptions filled, with a 110% growth in prescriptions over 17 weeks and a 70% increase in the fourth quarter compared to the third quarter.
Revenue and Financial Performance
Phathom reported net revenues of $29.7 million for Q4 2024, an 81% increase from the previous quarter, and $55.3 million for the full year 2024.
Commercial Coverage and Market Penetration
VOQUEZNA maintains over 80% commercial coverage, equating to more than 120 million lives.
Physician Adoption and Refill Rates
Over 20,000 physicians have written VOQUEZNA prescriptions, with a 75% refill rate among Q4 scripts, indicating strong physician and patient adoption.
Lowlights
Potential Challenges with the Citizen Petition
Phathom awaits FDA response to a Citizen Petition requesting extended exclusivity for VOQUEZNA, with potential litigation if the decision is unfavorable.
Q1 Seasonal Revenue Softness
Anticipated revenue softness in Q1 2025 due to typical industry dynamics such as holiday impacts and deductible resets.
Limited Medicare and Medicaid Coverage
VOQUEZNA currently has limited coverage in Medicare and Medicaid sectors, posing a challenge for broader market access.
R&D and SG&A Cost Increases
Expected increases in R&D and SG&A expenses for 2025, driven by ongoing development projects and expanded DTC marketing.
Company Guidance
During the Phathom Pharmaceuticals Fourth Quarter and Full Year 2024 Earnings Results Call, the company provided comprehensive guidance for 2025, emphasizing their strategic focus on driving growth. Key metrics highlighted include achieving net revenues of $55.3 million for 2024, with expectations of reaching approximately $165 million in revenues for 2025. The company reported over 300,000 VOQUEZNA prescriptions filled since launch and commercial coverage for over 120 million lives. They anticipate non-GAAP operating expenses between $360 million and $390 million for 2025, driven by investments in expanded direct-to-consumer marketing and R&D, particularly for their new Phase 2 eosinophilic esophagitis trial. They also noted gross-to-net discounts approximating 57% for 2024 and maintained confidence in their coverage strategy, which allows for VOQUEZNA access after one generic PPI prescription. Phathom plans to continue leveraging its strong balance sheet, with $297 million in cash and additional funds available from their debt facility, to support these initiatives.Phathom Pharmaceuticals Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Phathom Pharmaceuticals Announces Leadership Transition in 2025
Neutral
Apr 1, 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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.