Phathom Pharmaceuticals appoints new CEO

FLORHAM PARK, N.J. - Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT), a company specializing in gastrointestinal disease treatments with a current market capitalization of approximately $429 million, announced today the immediate appointment of Steven Basta as its new President, CEO, and Board member. Basta succeeds Terrie Curran, who has stepped down for personal reasons. According to InvestingPro data, the company’s stock appears undervalued despite facing recent challenges, including a significant 63% decline over the past six months.

Michael Cola, Phathom’s Chairman, expressed confidence in Basta’s ability to lead the company’s growth, citing his extensive experience in biopharmaceutical leadership and his track record in developing and commercializing novel treatments. Basta’s appointment is seen as a strategic move to accelerate the commercial growth of Phathom’s flagship product, VOQUEZNA®, a treatment for gastrointestinal diseases. The company has shown promising revenue growth, with analysts projecting continued sales expansion, though InvestingPro analysis indicates the company is currently burning through cash with a negative EBITDA of $277 million in the last twelve months.

Basta brings over 25 years of industry experience to Phathom, having previously led companies such as SaNOtize and Mahana Therapeutics, among others. His background includes roles in new product development, commercial strategy, sales, and operations.

The outgoing CEO, Terrie Curran, reflected positively on her tenure, highlighting the company’s achievements in changing the treatment landscape for GI diseases. Cola thanked Curran for her contributions to Phathom’s transition from a clinical stage to a commercial company.

Phathom Pharmaceuticals focuses on novel GI disease treatments, including VOQUEZNA® tablets for Non-Erosive GERD and Erosive GERD in adults, and VOQUEZNA® TRIPLE PAK® and VOQUEZNA® DUAL PAK® for H. pylori infection treatment in adults.

The company’s press release contains forward-looking statements regarding the expansion of VOQUEZNA® opportunities and future commercial growth. These statements are subject to risks and uncertainties, including regulatory developments, market acceptance, and potential side effects or inadequate efficacy of the product.

Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on current expectations and involve known and unknown risks. Phathom does not undertake any obligation to update these statements following the date of the press release. For deeper insights into Phathom’s financial health, growth prospects, and comprehensive analysis, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

This article is based on a press release statement from Phathom Pharmaceuticals.

In other recent news, Phathom Pharmaceuticals reported a significant 81% increase in revenue for the fourth quarter of 2024, reaching $29.7 million. This growth is largely attributed to the successful market penetration of their product, VOQUEZNA, which has shown promising adoption among primary care physicians and a substantial increase in filled prescriptions. The company’s coverage now extends to over 120 million commercially covered lives in the U.S. Analysts from Stifel and H.C. Wainwright have maintained a Buy rating on Phathom Pharmaceuticals, with a price target of $28, reflecting confidence in the company’s commercial strategies and product potential.

In a separate development, Jefferies analyst Glen Santangelo adjusted the price target for Phathom Pharmaceuticals to $13, down from $17, while maintaining a Buy recommendation, citing potential positive developments that could impact the stock. Meanwhile, Phathom has partnered with comedian Kenan Thompson to launch the "GERD IS NO JOKE" campaign, aiming to raise awareness about gastroesophageal reflux disease (GERD) and promote VOQUEZNA as a treatment option. The campaign is set to launch across multiple platforms, including broadcasting and streaming services.

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