Stifel analysts affirm Buy rating for Phathom Pharmaceuticals stock

On Friday, Stifel analysts reaffirmed their Buy rating for Phathom Pharmaceuticals stock (NASDAQ: PHAT), maintaining a price target of $28.00. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $5 to $28, suggesting significant potential upside from current levels. This decision follows the U.S. Food and Drug Administration’s (FDA) recent move to grant a 10-year exclusivity period for Voquezna tablets, extending their market protection until 2032.

The FDA’s decision came after Phathom Pharmaceuticals filed a citizen’s petition last December, requesting an update to the Orange Book exclusivity period for Voquezna tablets. This update aligns the tablets’ exclusivity with that of the Voquezna Dual and Triple Pak for H. pylori, which already enjoyed a 10-year exclusivity period.

The analyst noted that Voquezna tablets had clear legal grounds for the same statutory exclusivity as the Paks, as the exclusivity follows the single active moiety of vonoprazan. During the period of uncertainty, Phathom’s shares were negatively affected, dropping from highs of approximately $19 in September 2024. InvestingPro data shows the stock has lost nearly 48% over the past six months, though it has recently shown signs of recovery with a 10.35% gain in the past week.

With the FDA’s decision, Stifel analysts expect Phathom Pharmaceuticals to recover the ground lost during this uncertain period and anticipate the stock to reflect the strong launch of Voquezna and its continued demand. The analysts have left their model unchanged, as their view already considered the full 10-year exclusivity. InvestingPro analysis indicates strong sales growth potential, with revenue forecast to nearly double this year. Subscribers can access 8 additional ProTips and comprehensive financial metrics in the Pro Research Report.

In other recent news, Phathom Pharmaceuticals reported better-than-expected financial results for the first quarter of 2025. The company achieved earnings per share of -1.07 USD, surpassing the forecast of -1.11 USD, and reported revenue of 28.5 million USD, exceeding expectations by 0.75 million USD. Additionally, the U.S. Food and Drug Administration granted Phathom Pharmaceuticals extended market exclusivity for its drug VOQUEZNA® until 2032, which could positively impact the company’s market position and revenue prospects. Analyst firm H.C. Wainwright adjusted its price target for Phathom Pharmaceuticals, lowering it to 20 USD from 28 USD, while maintaining a Buy rating on the stock. The firm noted the company’s strategic shift away from direct-to-consumer marketing to focus on the gastrointestinal specialist channel and primary care for growth. Phathom Pharmaceuticals aims to achieve profitability by 2026, implementing cost-saving measures and maintaining strong gross margins. Despite the positive financial performance, the company faces challenges such as regulatory developments and market competition. Investors are monitoring these developments closely as Phathom Pharmaceuticals continues to navigate its commercial strategy.

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