Bullish indicating open at $55-$60, IPO prices at $37
Friday - Stifel analysts have maintained a Buy rating and a $28.00 price target for Phathom Pharmaceuticals (NASDAQ:PHAT), focusing on the company’s recent developments. Currently trading at $5.59, significantly below its 52-week high of $19.71, the stock has caught analysts’ attention with a strong consensus rating of 1.5 (Strong Buy). The conversation was centered around the launch of Voquezna and the ongoing discussions about the drug’s Orange Book exclusivity, which has been a significant point of interest for investors. According to InvestingPro, there are 12 additional key insights available about PHAT’s market position and growth potential.
Phathom Pharmaceuticals has taken proactive steps to address the exclusivity issue by filing a Citizen’s Petition on December 11, 2024. This move is intended to prompt a response from the FDA by June 2025, adhering to the 180-day response deadline. The company, which maintains a strong liquidity position with a current ratio of 5.73, is optimistic that Voquezna, in its bottle format, will be granted the same 10-year exclusivity currently enjoyed by the combo packs under the Generating Antibiotic Incentives Now (GAIN) Act. This would extend Voquezna’s exclusivity until 2032, as both formats are used for treating H. pylori infection.
Stifel’s analysis suggests that Phathom’s shares are currently trading below their fundamental value, which only accounts for intellectual property protection until August 2030. The firm anticipates that a resolution to the exclusivity matter will elevate the stock to better reflect Voquezna’s true market opportunity.
The confidence in Voquezna’s performance and the expected resolution of its exclusivity status contribute to Stifel’s optimistic outlook on Phathom Pharmaceuticals. The firm’s reiterated stance comes at a time when the company is navigating through regulatory processes to secure its market position for the long term.
In other recent news, Phathom Pharmaceuticals has been in the spotlight due to a number of significant developments. The company’s product, VOQUEZNA, has been granted an extended exclusivity period till May 2032, as per H.C. Wainwright’s analysis. This follows a Citizen Petition to the FDA regarding the Orange Book listings for VOQUEZNA, which includes vonoprazan tablets in 10mg and 20mg dosages. The firm maintains a Buy rating for Phathom Pharmaceuticals, despite pending clarity on the exclusivity.
Stifel provided insights into Phathom Pharmaceuticals’ strategic move to file a Citizen’s Petition with the FDA. The company seeks to align the exclusivity period for its VOQUEZNA tablets with that of the VOQUEZNA Dual and Triple Pak, which is currently set at 10 years. The FDA is expected to respond within approximately 180 days.
On the earnings front, Phathom Pharmaceuticals reported net revenue of $16.4 million for Voquezna in the third quarter of 2024, surpassing both the analyst’s and the consensus estimates. Guggenheim attributes this to robust growth in Erosive Esophagitis treatment and a surge in demand following the expansion of Voquezna’s label to include Non-Erosive Reflux Disease. The firm maintains a Buy rating and a $28 price target for Phathom Pharmaceuticals.
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