olivLaw · US equity research
Phathom Pharmaceuticals, Inc. PHAT
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Phathom Pharmaceuticals is a commercial-stage biopharmaceutical company focused on treatments for gastrointestinal diseases, whose main product VOQUEZNA contains vonoprazan, a potassium-competitive acid blocker sold in the United States. The company reported record quarterly net revenues in the second quarter of 2026 of 74.3 million USD, up 88% from a year earlier, and its full-year 2026 revenue guidance stands at 310 - 325 million USD. Its current relevance lies in the move from losses toward operating profitability excluding stock-based compensation, which could become durable if growth continues.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Phathom Pharmaceuticals, Inc. (PHAT) stock was 5.68 USD (−1.05% on the day), with market capitalisation 461.7 m USD, beta 1.21, 52-week range 5.68–18.08 USD. Latest reported quarter (Q3 2026): revenue of 84.7 m USD (+71.1% YoY), net income of -13.9 m USD, diluted EPS -0.16 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 34.3
- weak (30–45)
- Bollinger (20, 2)
- 5.31 – 7.89
- in the lower half of the band · %B 0.14 · band width 39.1%
- SMA 50 / 200
- 7.46 / 10.31
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.48 / -0.43
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −15.2% | −1.1% | −14.1 pp | — |
| 3 months | −31.0% | −0.5% | −30.5 pp | — |
| 6 months | −55.2% | +4.4% | −59.6 pp | — |
| Year to date | −65.8% | +12.3% | −78.1 pp | — |
| 1 year | −57.9% | +13.5% | −71.4 pp | −9.2% |
| 3 years | −34.9% | +76.4% | −111.3 pp | +50.7% |
| 5 years | −74.6% | +63.7% | −138.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 29.7 m | 28.5 m | 39.5 m | 49.5 m | 57.6 m | 58.3 m | 74.3 m | 84.7 m |
| Cost of revenue | 3.8 m | 3.7 m | 5.0 m | 6.2 m | 7.6 m | 12.0 m | 15.1 m | 18.4 m |
| Gross profit | 25.8 m | 24.8 m | 34.5 m | 43.3 m | 49.9 m | 46.3 m | 59.2 m | 66.4 m |
| Research & development | 8.6 m | 9.2 m | 9.1 m | 7.0 m | 7.5 m | 7.8 m | 7.8 m | 8.7 m |
| SG&A | 76.7 m | 94.5 m | 85.3 m | 51.6 m | 48.4 m | 54.0 m | 55.3 m | 57.7 m |
| Operating income | -59.4 m | -78.9 m | -59.9 m | -15.3 m | -5.9 m | -15.5 m | -4.0 m | -85.0 k |
| Depreciation & amortisation | 193.0 k | 177.0 k | 172.0 k ≈ | 156.0 k ≈ | 128.0 k | 110.0 k | 114.0 k ≈ | 120.0 k ≈ |
| Interest expense | 18.6 m | 18.1 m | 17.5 m | 16.1 m | 16.4 m | 15.8 m | 15.1 m | 15.4 m |
| Net income | -74.5 m | -94.3 m | -75.8 m | -30.0 m | -21.1 m | -30.4 m | -17.6 m | -13.9 m |
| Diluted EPS | -1.05 ≈ | -1.31 | -1.05 | -0.41 | -0.29 ≈ | -0.37 | -0.21 | -0.16 |
| Operating cash flow | -63.5 m | -84.9 m | -62.7 m ≈ | -14.1 m ≈ | -5.0 m | -15.6 m | -1.9 m ≈ | 1.8 m ≈ |
| Capex | 5.0 k | 18.0 k | 97.0 k ≈ | 27.0 k ≈ | 87.0 k | 61.0 k | 44.0 k ≈ | 110.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable | unavailable | 0 | 682.0 k | 55.3 m | 175.1 m |
| Revenue YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | +8,001.5% | +216.9% |
| Net income | -1.3 m | -255.1 m | -129.1 m | -143.9 m | -197.7 m | -201.6 m | -334.3 m | -221.2 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | unavailable | unavailable | -3.89 | -5.05 | -3.93 | -5.29 | -3.03 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | unavailable | unavailable | unavailable | unavailable | unavailable | -29,558.9% | -605.1% | -126.3% |
| Free cash flow | unavailable | -36.6 m | -70.7 m | -148.8 m | -147.6 m | -139.2 m | -266.9 m | -167.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 130.0 m USD
- Financial debt
- 209.1 m USD
- Net debt
- 79.1 m USD
- Equity
- -438.2 m USD
- Total assets
- 259.1 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.73x
- ROE
- unavailable
- ROA
- -69.4%
- FCF margin
- -95.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | — | — | 0 | 682.0 k | 55.3 m | 175.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | — | — | 0 | 167.0 k | 8.0 m | 22.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | — | — | 0 | 515.0 k | 47.3 m | 152.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Research & development | 98.1 m | 72.3 m | 71.4 m | 49.9 m | 34.1 m | 32.8 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | — | — | 101.0 m | 117.9 m | 290.7 m | 279.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | -125.7 m | -135.1 m | -172.4 m | -167.3 m | -277.5 m | -160.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 323.0 k | 521.0 k | 620.0 k | 575.0 k | 795.0 k | 633.0 k | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | -125.3 m ≈ | -134.6 m ≈ | -171.8 m ≈ | -166.7 m ≈ | -276.7 m ≈ | -159.4 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 4.6 m | 6.8 m | 27.3 m | 42.0 m | 72.0 m | 68.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | — | — | — | — | -334.3 m | -221.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 0 | 0 | 0 | 0 | 0 | 0 | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -129.1 m | -143.9 m | -197.7 m | -201.6 m | -334.3 m | -221.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | — | -3.89 | -5.05 | -3.93 | -5.29 | -3.03 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | — | 37.0 m | 39.1 m | 51.3 m | 63.2 m | 72.9 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 287.5 m | 183.3 m | 155.4 m | 381.4 m | 297.3 m | 130.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | — | — | 0 | 1.2 m | 3.2 m | 5.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 291.4 m | 186.5 m | 160.5 m | 397.4 m | 360.1 m | 229.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 986.0 k | 650.0 k | 1.2 m | 2.1 m | 1.5 m | 1.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 295.1 m | 189.4 m | 164.8 m | 413.8 m | 378.3 m | 259.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 16.8 m | 5.2 m | 10.0 m | 12.6 m | 10.5 m | 5.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 7.4 m | — | 0 | 0 | 0 | 0 | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 39.6 m | 89.7 m | 95.3 m | 137.8 m | 201.4 m | 209.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 55.5 m | 18.9 m | 26.2 m | 38.8 m | 85.7 m | 132.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 100.8 m | 117.3 m | 239.6 m | 486.6 m | 631.9 m | 697.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 194.3 m † | 72.2 m † | -74.8 m † | -72.8 m † | -253.6 m † | -438.2 m † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -69.7 m | -148.5 m | -146.5 m | -137.6 m | -266.8 m | -166.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 1.0 m | 328.0 k | 1.0 m | 1.6 m | 135.0 k | 229.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | -70.7 m ≈ | -148.8 m ≈ | -147.6 m ≈ | -139.2 m ≈ | -266.9 m ≈ | -167.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -1.0 m | -328.0 k | -1.0 m | -1.6 m | -135.0 k | -229.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 114.5 m | 44.7 m | 120.0 m | 367.6 m | 182.8 m | -288.0 k | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 25.0% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 461.7 m USD
Key indicators
Coverage and freshness
Score by group
25% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.67 – 12.66 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)7.67 – 12.66 (Mid 9.51)WACC 8.2% · starting FCFF 31.6 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -8.1%
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -30.2% | 35 (vs peers) | 25% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -0.4x | 0 (on a fixed band) | 25% |
| Current ratio · Balance sheet | 1.8x | 80 (on a fixed band) | 17% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -4.6% | 0 (on a fixed band) | 33% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet32/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial35/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PHATHOM PHARMACEUTICALS, INC. (PHAT). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 175.1 m USD in 2025; YoY growth 216.9%; net margin -30.2%.
The estimated value range is 7.67–12.66 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 9.51 USD, the price of 5.68 USD leaves a potential of 67.4% (value / price − 1) and a margin of safety of 40.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 1.8x
- The price is below the estimated value range
What contradicts it
- Interest coverage: -0.4x
- FCF yield: -4.6%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,334.0 bn | 46.0 | 86.1% | 31.9% | +44.7% | +32% / +140% |
| JNJJohnson & Johnson | 665.2 bn | 41.9 | 20.0% | 16.2% | +6.0% | +34% / +79% |
| ONCBeone Medicines Ltd. | 558.4 bn | 869.9 | 14.7% | 10.7% | +40.2% | +11% / +102% |
| ABBVAbbVie Inc. | 521.1 bn | 50.7 | — | 15.7% | +8.6% | +29% / +107% |
| MRKMerck & Co., Inc. | 370.7 bn | 154.7 | 5.1% | 3.6% | +1.3% | +43% / +47% |
| ABTAbbott Laboratories | 200.1 bn | 43.0 | 9.2% | 9.7% | +5.7% | −10% / +11% |
| PFEPfizer Inc | 175.5 bn | 43.9 | 4.4% | 6.3% | −1.6% | +20% / +1% |
| VRTXVertex Pharmaceuticals Inc | 139.2 bn | 35.3 | 20.8% | 30.7% | +8.9% | +27% / +55% |
| BMYBristol-Myers Squibb Company | 131.2 bn | 14.2 | 44.1% | 18.5% | −0.2% | +30% / +30% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.4 | 6.6% | 3.6% | +4.3% | +56% / +326% |
| ZTSZoetis Inc. | 36.9 bn | 14.7 | 64.4% | 27.5% | +2.3% | −30% / −50% |
| ROIVRoivant Sciences Ltd. | 27.6 bn | — | -6.2% | -3,535.0% | −71.6% | +84% / +300% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 25.9 bn | 23.0 | 19.1% | 38.6% | +10.6% | +25% / +154% |
| INSMInsmed Inc | 24.1 bn | — | -72.5% | -39.9% | +66.7% | −47% / +340% |
| VTRSViatris Inc. | 22.1 bn | — | -23.6% | -23.9% | −3.0% | +80% / +109% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.6 bn | 8.1 | 126.6% | 52.8% | +65.2% | −64% / −4% |
| ORKAOruka Therapeutics, Inc. | 6.7 bn | — | -18.2% | — | unavailable | +237% / +364% |
| IONSIonis Pharmaceuticals, Inc. | 6.7 bn | — | -105.5% | -64.7% | +33.8% | −51% / −19% |
| IDYAIDEAYA Biosciences, Inc. | 3.1 bn | — | -38.5% | -1,149.6% | +3,024.4% | −9% / +3% |
| RADXRadiopharm Theranostics Limited | 3.1 bn | — | -109.2% | -1,055.3% | +1,114.3% | −81% / unavailable |
| AUPHAurinia Pharmaceuticals Inc. | 2.3 bn | 7.5 | 61.4% | 97.7% | +20.4% | +6% / +98% |
| QUREuniQure N.V. | 1.6 bn | — | -89.0% | -1,154.8% | −40.6% | −16% / +240% |
| URGNUroGen Pharma Ltd. | 1.4 bn | — | — | -26.3% | +21.4% | −0% / +118% |
| PHATPhathom Pharmaceuticals, Inc. | 461.7 m | — | — | -30.2% | +216.9% | −58% / −35% |
1- and 3-year price returns: for PHAT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Phathom Pharmaceuticals is a commercial-stage biopharmaceutical company focused on treatments for gastrointestinal diseases, whose main product VOQUEZNA contains vonoprazan, a potassium-competitive acid blocker sold in the United States. The company reported record quarterly net revenues in the second quarter of 2026 of 74.3 million USD, up 88% from a year earlier, and its full-year 2026 revenue guidance stands at 310 - 325 million USD 3. Its current relevance lies in the move from losses toward operating profitability excluding stock-based compensation, which could become durable if growth continues.
SWOT
Strengths
- The company has a mechanism of action different from PPIs, which does not require acid-mediated activation, and NCE exclusivity extended into 2032 1.
- Rapid growth in prescriptions and lower spending show solid operational discipline 23.
- Broad commercial coverage, including most U.S. commercial lives, supports patient access to the product 1.
Weaknesses
- The company depends almost entirely on one product, which makes its success vulnerable 1.
- A history of significant net losses and a large accumulated deficit limit financial flexibility 1.
- The company has payment obligations to its licensor, including royalties, and to lenders, which could weigh on cash flow 1.
Opportunities
- Expansion into primary care and as-needed use in non-erosive GERD could open new patient segments 3.
- Results from the eosinophilic esophagitis study, if positive, could support further indications and exclusivity extension 3.
- Markets in Europe, Canada and possible U.S. OTC use represent potential directions for vonoprazan 1.
Threats
- Generic and OTC availability of PPIs could limit revenue from GERD treatments 1.
- Pressure from insurers and reimbursement restrictions could reduce patient access and realized prices 1.
- If revenue or profitability targets are missed, the company could need additional funding on less favorable terms 12.
Risks
- Dependence on VOQUEZNAhigh
The entire commercial business depends on one product, and failure to commercialize it at expected levels would seriously affect the company's outlook 1.
- Need for additional financinghigh
If cash flow does not follow the operating plan, the company could need additional capital, which could force it to scale back activities 12.
- Reimbursement and insurer coveragemedium
A lack of adequate coverage or reimbursement could limit sales, and failure to comply with government program obligations could lead to penalties 1.
- Reliance on third partiesmedium
The company relies on third-party manufacturers and clinical research organizations, and problems with them could delay development and supply 1.
- Takeda license riskmedium
If the Takeda license were terminated, the company would lose its rights to develop and commercialize vonoprazan in the licensed territories 1.
Investment thesis
What would need to be true (bull case)
- Rapid growth in quarterly revenue and prescriptions, combined with broad commercial coverage, suggests the product could gain ground in GERD treatment 23.
- Cost reductions and operating profitability excluding stock-based compensation could strengthen the company's financial position 3.
- Extended exclusivity and potential new indications could prolong the revenue period and open new commercial opportunities 13.
What would break the thesis
- The company reported significant net losses in prior years, and profitability depends on keeping sales growth on pace 1.
- Dependence on one product and on insurer decisions could slow growth or reduce prices, affecting long-term revenue targets 1.
- If ongoing studies do not produce favorable results, the potential for indication expansion could be limited and the need for funding could increase 13.
What to watch
- Quarterly revenue and VOQUEZNA prescription trendsQ3 2026
- Topline results from the Phase 2 eosinophilic esophagitis trialQ4 2026
- Delivery against 2026 revenue and operating expense guidance2026
- Start of the Phase 3 program for as-needed use in NERDQ4 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Phathom is a commercial-stage biopharmaceutical company dedicated to commercializing and developing novel treatments for gastrointestinal diseases 1. All of its revenue is derived from the sale of three products in the United States: VOQUEZNA, VOQUEZNA DUAL PAK and VOQUEZNA TRIPLE PAK, all containing vonoprazan 1. The company licensed U.S., European and Canadian rights to vonoprazan from Takeda in 2019 and commercializes the products independently 1.
The strategy aims to maximize the U.S. opportunity for VOQUEZNA in GERD through a sales force initially focused on gastroenterologists, with possible later expansion toward primary care physicians 1. The company is also exploring life-cycle management for vonoprazan, including new indications and formulations, and possible markets in Europe, Canada or U.S. over-the-counter use 1. NCE exclusivity for the VOQUEZNA products extends through May 2032 after the FDA updated the Orange Book listing in June 2025 1.
During 2026 the company announced completion of enrollment in its Phase 2 trial in eosinophilic esophagitis, with topline results expected in the fourth quarter of 2026, and is preparing a Phase 3 program for as-needed use of VOQUEZNA in non-erosive GERD 3. It also reported lower operating expenses and a return to operating profitability excluding stock-based compensation in the second quarter of 2026 3.
Segments
VOQUEZNA for GERD
Most revenue comes from VOQUEZNA for GERD, covering both erosive and non-erosive indications 1. Prescriptions grew in fiscal 2025 and in the first half of 2026, and most prescriptions are written for GERD indications 12.
VOQUEZNA DUAL PAK and TRIPLE PAK
The two co-packaged combinations, pairing vonoprazan with amoxicillin and, respectively, clarithromycin, are approved for the treatment of H. pylori infection in adults 1. They complement the commercial portfolio, although most prescriptions target GERD 1.
Pipeline and indication expansion
Development of vonoprazan includes a Phase 2 trial in eosinophilic esophagitis and a planned Phase 3 program for as-needed use in non-erosive GERD 3. If the esophagitis results were positive, the company could discuss further development plans with the FDA, including pediatric evaluation 3.
Market context
GERD is one of the most common gastrointestinal conditions in the U.S., affecting an estimated 65 million adults, and about 22 million adults are prescribed GERD treatments each year 1. The PPI class previously reached annual sales of about 12.5 billion USD in the United States before generic and OTC alternatives arrived 1. An estimated 40% of GERD patients do not get adequate relief from PPI therapy, which leaves room for alternatives 1.
The company estimates that VOQUEZNA could reach 1 billion USD in annual revenue through its focus on gastroenterologists, with a similar additional opportunity from expanded primary care engagement 3. Commercial coverage is broad, with access for over 120 million U.S. commercial lives 1.
Trends
- Growing VOQUEZNA prescriptionstailwind
Cumulative prescriptions exceeded 1.7 million as of July 17, 2026, and quarterly prescription volume rose 88% from the prior year 23. This trend supports revenue growth if the pace is sustained.
- Lower operating expensesmixed
Operating expenses in the second quarter fell substantially from the prior year, mainly due to reduced direct-to-consumer promotion and personnel costs 3. The savings could support the path to profitability, though they may limit commercial investment.
- Extended NCE exclusivitytailwind
NCE exclusivity for all VOQUEZNA products now extends through May 2032, following the FDA's June 2025 Orange Book update 1. This could delay competition from similar medicines.
- Single-product dependence and pricingheadwind
The company depends almost entirely on VOQUEZNA, and insurer coverage and reimbursement directly shape revenue 1. Pricing pressure or coverage restrictions could slow growth.
Competitive position
VOQUEZNA is the only PCAB approved for marketing in the U.S., but it competes with proton pump inhibitors, which remain the standard of care for GERD and H. pylori infection 1. The company notes that many patients do not get enough relief from PPIs, positioning VOQUEZNA as an alternative 1.
The main competitors are PPI-class drugs such as Prilosec, Nexium and Prevacid, along with their generic and OTC versions 1. Because these drugs have long-established prescribing patterns, changing physician habits could be slow 1.
- Prilosec (omeprazole)
Proton pump inhibitor with large past sales that remains a standard GERD treatment 1.
- Nexium (esomeprazole)
Proton pump inhibitor in the same class, widely prescribed for erosive and non-erosive GERD 1.
- Prevacid (lansoprazole)
Proton pump inhibitor used for GERD and H. pylori treatment, also compared in the company's trials 1.
- Generic and OTC PPI versions
Lower-cost alternatives that have reduced PPI class sales and compete for patients with mild or moderate disease 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report26 Oct 2026Other events
- Current report23 Oct 2026Other events
- Current report29 Sept 2026Other events
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report23 Jun 2026Other events
- Current report21 May 2026Shareholder vote
- Quarterly report30 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Phathom Pharmaceuticals, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Phathom Pharmaceuticals, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Phathom Pharmaceuticals, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.