Guggenheim reiterates Buy on Phathom stock after FDA grants exclusivity

Published 06/06/2025, 19:34
Guggenheim reiterates Buy on Phathom stock after FDA grants exclusivity

On Friday, Guggenheim analysts reaffirmed their Buy rating and maintained a $12.00 price target on Phathom Pharmaceuticals stock (NASDAQ: PHAT), which has seen a notable 10.35% gain over the past week. The decision comes after the U.S. Food and Drug Administration (FDA) granted 10-year New Chemical Entity (NCE) exclusivity for Voquezna tablets, ensuring exclusivity until May 2032.

The exclusivity grant addresses Phathom’s Citizen Petition submitted in December 2024, which requested corrections to the Orange Book listings for 10 mg and 20 mg Voquezna tablets. This development is expected to alleviate a significant overhang on the stock and potentially attract new investor interest. InvestingPro data shows the company maintains strong liquidity with a current ratio of 3.58, though it operates with significant debt.

Phathom Pharmaceuticals has also announced recent cost-reduction measures under its new CEO, who has set a target to achieve profitability by 2026. These strategic initiatives are anticipated to enhance the company’s long-term growth prospects.

Guggenheim analysts highlighted that their net present value analysis suggests a fair value for Phathom stock in the $12-14 range, reinforcing their positive outlook on the company’s future performance.

In other recent news, Phathom Pharmaceuticals reported better-than-expected earnings for the first quarter of 2025. The company achieved earnings per share (EPS) of -1.07 USD, surpassing the projected -1.11 USD, while revenue reached 28.5 million USD, exceeding the forecast of 27.75 million USD. Additionally, the U.S. Food and Drug Administration (FDA) granted Phathom’s VOQUEZNA tablets a 10-year market exclusivity, extending protection until 2032, which may bolster the company’s market position and revenue prospects. Stifel analysts maintained a Buy rating on Phathom Pharmaceuticals, citing the FDA’s decision as a positive development. Meanwhile, H.C. Wainwright adjusted the stock’s price target from 28.00 USD to 20.00 USD, although they kept a Buy rating, reflecting confidence in the company’s strategic shift towards leveraging its salesforce and GI specialist channels. Phathom also announced cost-cutting measures aimed at achieving profitability by 2026, including a reduction in direct-to-consumer marketing efforts. These developments highlight Phathom’s ongoing efforts to optimize its commercial strategies and secure a competitive edge in the gastrointestinal treatment market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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