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Phathom Pharmaceuticals
(NASDAQ:PHAT)
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Rating:53Neutral
Price Target:
$7.50
▼(-14.48% Downside)
Action:Reiterated
Date:09/30/26
The score is held back primarily by weak financial fundamentals (continued losses, cash burn, and negative equity) and bearish technicals. These are partially offset by a notably constructive earnings call with accelerating revenue, improved expense discipline, initial operating/cash-flow milestones, and supportive clinical/label-expansion progress.
Positive Factors
Rapid VOQUEZNA commercial growth
VOQUEZNA demand is scaling rapidly, with Q2 revenue up 88% year over year and covered prescription volume up 79%. This broadening utilization supports a stronger commercial base for the franchise, although continued execution on access and distribution remains important.
Negative Factors
Persistent losses and negative equity
Phathom remains far from durable GAAP profitability, with large operating and net losses still translating into negative equity. This weak capital base limits financial flexibility and leaves the company more exposed if commercial progress or the path to profitability takes longer than expected.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid VOQUEZNA commercial growth
VOQUEZNA demand is scaling rapidly, with Q2 revenue up 88% year over year and covered prescription volume up 79%. This broadening utilization supports a stronger commercial base for the franchise, although continued execution on access and distribution remains important.
Read all positive factors
Phathom Pharmaceuticals (PHAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$559.83M
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)2.03
Revenue Growth110.16%
EPS Growth73.04%
CountryUS
Employees371
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.28
Shares Outstanding80,900,930
10 Day Avg. Volume1,266,566
30 Day Avg. Volume1,167,321
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-2.76
Price to Sales (P/S)6.91
P/FCF Ratio-7.25
Enterprise Value/Market Cap2.28
Enterprise Value/Revenue5.33
Enterprise Value/Gross Profit6.43
Enterprise Value/Ebitda-36.38
Forecast
1Y Price Target
$19.29Price Target Upside119.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.7
Revenue Forecast (FY)$316.56M
Phathom Pharmaceuticals Business Overview & Revenue Model
Company Description
Phathom Pharmaceuticals, Inc. operates as a clinical-stage biopharmaceutical firm, dedicated to advancing and commercializing therapies for gastrointestinal ailments. A pivotal asset for the company is vonoprazan, a distinctive potassium-competiti...
How the Company Makes Money
Phathom makes money primarily by commercializing and selling its VOQUEZNA franchise in the United States. Revenue is generated from product sales to customers (typically wholesalers/distributors and other channel partners) who supply pharmacies an...
Phathom Pharmaceuticals Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational progress: sharply higher revenue (+88% YoY), disciplined expense reductions (-34% YoY in cash operating expenses), first-time operating profitability excluding stock comp, first positive cash from operations and healthy cash balance. Clinical programs (EoE Phase 2 enrollment complete; Phase 3 as-needed GERD to start Q4) and updated guidance support continued growth. Key near-term challenges are physician/payer workflow friction limiting broader adoption, a high gross-to-net discount (55%–59%) that may moderate realized revenue, a meaningful cash-pay portion of scripts (~36% in Q2), and planned back-half investments that will consume cash before anticipated durable cash flow positivity in 2027. Overall, the positives (revenue acceleration, profitability milestone, clinical progress, and liquidity) materially outweigh the listed near-term obstacles.Positive Updates
Record Revenue Growth
Q2 net revenue of $74.3M, up 88% year-over-year (+$34.8M) and 27% sequentially (+$16M), representing the largest absolute quarter-over-quarter revenue increase in company history.
Negative Updates
Physician / Payer Friction Impacting Broader Adoption
Management reported 'friction' in physician workflows and prior authorization processes that is reducing physicians' willingness to prescribe VOQUEZNA more broadly for less severe GERD patients; this friction led to a fine-tuning of 2026 guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth
Q2 net revenue of $74.3M, up 88% year-over-year (+$34.8M) and 27% sequentially (+$16M), representing the largest absolute quarter-over-quarter revenue increase in company history.
Read all positive updates
Company Guidance
Phathom updated full‑year 2026 revenue guidance to $310–$325 million, reiterated gross‑to‑net guidance of 55–59% and an expected gross margin of ~80%, and raised full‑year cash operating expense guidance (ex‑stock comp) to $235–$245 million. Q2 supports the outlook with net revenue of $74.3M (up ~88% YoY and $16M/27% sequentially), Q2 cash operating expenses of $56.4M (down ~$29.7M or 34% YoY), cash from operations of about $1.6M, and $182.5M in cash and cash equivalents at quarter end. Commercial metrics: nearly 1.7M VOQUEZNA prescriptions filled through July 17, ~325K fills in Q2 (≈209K covered, ~64%, and ≈116K cash), with covered volume +24% QoQ and cash volume +16% QoQ (covered +79% YoY; total +88% YoY). Management expects sustained operating profitability excluding stock‑based compensation in upcoming quarters, moderate gross‑to‑net pressure through year‑end, continued modest cash use this year with durable cash‑flow positivity targeted in 2027, and near‑term program milestones including initiation of a Phase‑3 as‑needed non‑erosive GERD trial in Q4 2026 and EoE Phase‑2 topline data in Q4 2026 (with a potential 6‑month exclusivity extension if favorable).Phathom Pharmaceuticals Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 239.66M | 175.11M | 55.25M | 682.00K | 0.00 | 0.00 |
| Gross Profit | 198.73M | 152.51M | 47.28M | 515.00K | -620.00K | -521.00K |
| EBITDA | -35.14M | -152.50M | -261.52M | -159.05M | -169.80M | -136.57M |
| Net Income | -99.07M | -221.25M | -334.33M | -201.59M | -197.72M | -143.88M |
Balance Sheet | ||||||
| Total Assets | 327.07M | 259.15M | 378.32M | 413.84M | 164.81M | 189.43M |
| Cash, Cash Equivalents and Short-Term Investments | 182.48M | 129.97M | 297.26M | 381.39M | 155.38M | 183.26M |
| Total Debt | 167.11M | 211.80M | 201.91M | 139.03M | 97.07M | 91.34M |
| Total Liabilities | 671.35M | 697.32M | 631.90M | 486.60M | 239.62M | 117.28M |
| Stockholders Equity | -344.27M | -438.17M | -253.58M | -72.76M | -74.81M | 72.16M |
Cash Flow | ||||||
| Free Cash Flow | -36.71M | -166.78M | -266.90M | -139.21M | -147.57M | -148.78M |
| Operating Cash Flow | -36.69M | -166.78M | -266.77M | -137.58M | -146.53M | -148.46M |
| Investing Cash Flow | -219.00K | -229.00K | -135.00K | -1.63M | -1.04M | -328.00K |
| Financing Cash Flow | 69.82M | -288.00K | 182.77M | 367.58M | 120.04M | 44.71M |
Phathom Pharmaceuticals Technical Analysis
Negative
8.77
Price Trends
8.71
Negative
9.84
Negative
11.40
Negative
Market Momentum
-0.53
Positive
32.55
Neutral
23.34
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 8.77 is above the 20-day moving average (MA) of 7.83, above the 50-day MA of 8.71, and below the 200-day MA of 11.40, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 32.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.34 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 81 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $881.57M | 5.63 | 90.98% | ― | 1078.78% | ― | |
61 Neutral | $1.51B | -10.96 | -56.19% | ― | -32.27% | -21.09% | |
56 Neutral | $770.97M | -12.04 | -30.31% | ― | 24.39% | 21.06% | |
55 Neutral | $2.02B | -20.91 | 81.78% | ― | 100.27% | 39.90% | |
53 Neutral | $559.83M | -5.41 | 25.70% | ― | 110.16% | 73.04% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.84B | -2.94 | -189.68% | ― | -93.33% | -127.13% |
* Healthcare Sector Average
PHAT
Phathom Pharmaceuticals
6.92
-4.69
-40.40%
GERN
Geron
1.20
-0.08
-6.25%
ABUS
Arbutus Biopharma
4.45
0.11
2.53%
URGN
Urogen Pharma
41.40
24.35
142.82%
TSHA
Taysha Gene Therapies
4.63
0.21
4.75%
ZBIO
Zenas BioPharma, Inc.
28.30
5.27
22.86%
Phathom Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related Announcements
Phathom Starts Phase 3 VOQUEZNA Trial in NERD
Positive
Sep 29, 2026
On September 29, 2026, Phathom Pharmaceuticals began patient screening in its pHalcon-NERD-302 registrational Phase 3 trial of VOQUEZNA tablets as an as-needed regimen for adults with Non-Erosive GERD. The multicenter, randomized, double-blind stu...
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.