GICS Sector : Healthcare
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 reported a strong third quarter with net revenue reaching $49.5 million, a 25% quarter-over-quarter growth, beating expectations. The company's cash operating expenses were $49.3 million, a 43% decrease from the previous quarter and a 50% decrease from Q1 2025. The actual EPS came out at '-0.15', relative to estimates at '-0.3', showcasing a significant improvement. With a current cash balance of approximately $135 million, Phathom believes it can support operations through 2026 without additional equity financing.
Publication Date: Nov -17
The company's launch-to-date filled prescriptions have reached 790,000, with a 36% growth since the Q2 call. In Q3, there were 221,000 filled prescriptions, with 144,000 covered scripts growing 23% quarter-over-quarter. Phathom has shifted its sales focus to gastroenterology, with 70% of its sales force time now spent in gastroenterology practices. The company is tracking metrics on repeat prescribing behavior and seeing evidence of growth in utilization and more physicians becoming regular prescribers.
For Q4, operating expenses are expected to be higher due to the EoE Phase II trial but are expected to be below $55 million. Phathom refined its full-year 2025 non-GAAP operating expenses to $280 million to $290 million and believes it is on a path towards operating profitability in 2026. The company aims to achieve an operating profit position next year, with a cash usage of $14 million this quarter. Analysts estimate next year's revenue growth at 82.7%, indicating a significant increase in top-line growth.
With a P/S Ratio of 7.04, the market is pricing in significant revenue growth for Phathom Pharmaceuticals. The company's ROE is 77.32%, indicating a strong return on equity. However, the EV/EBITDA ratio is -4.44, suggesting that the company's earnings before interest, taxes, depreciation, and amortization are not yet positive. As Phathom continues to grow its revenue and move towards operating profitability, the valuation metrics will be closely watched to assess the stock's potential.
Phathom is working to improve patient access to its product through the Blink service, which offers a $25 co-pay for covered prescriptions and a $50 cash price for uncovered ones. This approach enables the company to minimize prescription abandonment and patient out-of-pocket costs. By educating physicians about Blink's advantages, Phathom can manage the cycle to reduce co-pay costs and increase access to its products.
Phathom Pharmaceuticals: Superior Efficacy Drives Vonoprazan Growth
Nov -21
Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) Receives Average Recommendation of “Moderate Buy” from Analysts
Nov -15
Phathom Pharmaceuticals Announces First Patient Dosed in Phase 2 Study of VOQUEZNA® (vonoprazan) in Eosinophilic Esophagitis (EoE)
Nov -04
Phathom Pharmaceuticals to Participate in Upcoming Investor Conferences
Nov -03
Phathom Pharmaceuticals, Inc. (PHAT) Q3 2025 Earnings Call Transcript
Oct -30
Phathom Pharmaceuticals, Inc. (PHAT) Reports Q3 Loss, Tops Revenue Estimates
Oct -30
Phathom Pharmaceuticals Reports Third Quarter 2025 Financial Results and Provides Business Update
Oct -30
Phathom Pharmaceuticals Announces Publication of Data from Phase 3 pHalcon-NERD-301 Study Showing VOQUEZNA® (vonoprazan) Improved Nocturnal GERD Symptoms in Patients with Non-Erosive Reflux Disease
Oct -25
Vonoprazan's 8.5% growth is driven by increasing adoption in gastroesophageal reflux disease (GERD) treatment, expanding label indications, and growing demand for proton pump inhibitor (PPI) alternatives. Additionally, Phathom's strategic partnerships, strong marketing efforts, and favorable reimbursement landscape contribute to the drug's rapid growth.
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Phathom Pharmaceuticals, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for gastrointestinal diseases.
Phathom Pharmaceuticals, Inc. has a low bargaining power of customers due to the lack of negotiating power among individual patients and the complexity of the pharmaceutical supply chain.
Phathom Pharmaceuticals, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and the company's dependence on these suppliers.
Phathom Pharmaceuticals, Inc. has a high threat of new entrants due to the growing demand for gastrointestinal treatments and the increasing number of biotech startups entering the market.
Phathom Pharmaceuticals, Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry among competitors.
| Value | |
|---|---|
| Debt Weight | 209.79% |
| Debt Cost | 7.27% |
| Equity Weight | -109.79% |
| Equity Cost | 7.27% |
| WACC | 7.27% |
| Leverage | -191.08% |
Value: 8.4
Growth: 5.3
Quality: 3.9
Yield: 0.0
Momentum: 8.5
Volatility: 1.0
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Value: 6.0
Growth: 3.8
Quality: 4.7
Yield: 0.0
Momentum: 10.0
Volatility: 1.7
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Value: 7.6
Growth: 5.2
Quality: 3.8
Yield: 0.0
Momentum: 8.5
Volatility: 0.3
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Value: 8.2
Growth: 3.2
Quality: 5.0
Yield: 0.0
Momentum: 6.5
Volatility: 1.7
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Value: 8.2
Growth: 4.4
Quality: 6.0
Yield: 0.0
Momentum: 1.5
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Value: 7.0
Growth: 2.2
Quality: 3.9
Yield: 0.0
Momentum: 4.0
Volatility: 1.3
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