Phathom Pharmaceuticals (PHAT) AI Stock Analysis

• Market Cap: $795.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: 1049.81%
• EPS Growth: 7.85%
• Country: US
• Employees: 427
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.05
• Shares Outstanding: 70,943,710
• 10 Day Avg. Volume: 1,098,213
• 30 Day Avg. Volume: 1,138,374
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 13.68
• Enterprise Value/Gross Profit: 15.86
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: $21.67
• Price Target Upside: 93.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $10.50 ▼(-6.33% 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 Exclusivity

Securing FDA exclusivity for VOQUEZNA through 2032 strengthens Phathom's market position, ensuring long-term commercial potential and reducing competitive pressures.

Revenue Growth

Strong revenue growth indicates successful product adoption and market penetration, which supports the company's trajectory towards profitability by 2026.

Cost Management

Effective cost management enhances financial efficiency, potentially accelerating the path to profitability and improving long-term financial health.

Negative Factors

Financial Instability

High liabilities and negative equity pose a risk to financial stability, limiting the company's ability to invest in growth and manage operational risks.

Cash Flow Challenges

Negative cash flow indicates inefficiencies in converting revenue to cash, which could strain resources and impact the ability to fund operations and growth initiatives.

Medicare Market Challenges

Challenges in Medicare coverage limit market access and could hinder revenue growth, affecting the company's ability to expand its customer base in a key demographic.

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 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

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	81.86M	55.25M	682.00K	0.00	0.00	0.00
Gross Profit	70.59M	47.28M	515.00K	-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 Assets	294.21M	378.32M	413.84M	164.81M	189.43M	295.11M
Cash, Cash Equivalents and Short-Term Investments	212.31M	297.26M	381.39M	155.38M	183.26M	287.50M
Total Debt	203.56M	554.95M	139.03M	97.07M	91.34M	49.02M
Total Liabilities	632.58M	631.90M	486.60M	239.62M	117.28M	100.84M
Stockholders Equity	-338.38M	-253.58M	-72.76M	-74.81M	72.16M	194.27M
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 Flow	172.87M	182.77M	367.58M	120.04M	44.71M	114.46M

Phathom Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAT, the sentiment is Neutral. The current price of 11.21 is below the 20-day moving average (MA) of 11.95, above the 50-day MA of 10.30, and above the 200-day MA of 7.30, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PHAT.

Phathom Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	74 Outperform	622.78M	6.41	119.39%	―	105.62%	0.00%
PHAT	60 Neutral	$795.28M	―	181.41%	―	1049.81%	7.85%
AMLX	57 Neutral	1.42B	-5.33	-183.14%	―	-100.08%	-2.45%
BNTC	47 Neutral	353.07M	-8.51	0.00%	―	-100.00%	83.98%
ALLO	46 Neutral	257.38M	-1.04	-61.01%	―	-100.00%	30.91%
TRDA	41 Neutral	206.16M	-3.04	-19.33%	―	-66.80%	-157.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Phathom Pharmaceuticals Corporate Events

Phathom Pharmaceuticals Gains FDA Exclusivity for VOQUEZNA

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.