Bullish indicating open at $55-$60, IPO prices at $37
FLORHAM PARK, N.J. - Phathom Pharmaceuticals, Inc. (NASDAQ: PHAT), a company specializing in gastrointestinal treatments, has announced the pricing of its public offering, which consists of common stock shares and pre-funded warrants. The offering includes 8,695,652 common stock shares priced at $11.50 each and pre-funded warrants to purchase 2,608,922 shares at $11.499 each. The total expected gross proceeds are approximately $130 million, with the offering's closure anticipated around August 20, 2024, contingent upon customary closing conditions.
The company has stated that the net proceeds will be allocated to commercialize and further clinical development of vonoprazan, a novel treatment for gastrointestinal diseases. Additionally, funds will support working capital and other corporate expenses. Vonoprazan has been marketed in the U.S. as VOQUEZNA® for Non-Erosive GERD and associated heartburn treatment, as well as in combination packs for H. pylori infection treatment in adults.
The underwritten offering is managed by Evercore ISI, Stifel, and Guggenheim Securities as joint bookrunners, with H.C. Wainwright & Co., Needham & Company, and Craig-Hallum serving as co-lead managers. Phathom has utilized a shelf registration statement with the Securities and Exchange Commission (SEC), and the prospectus can be accessed via the SEC's website.
The company's forward-looking statements address the expected closing of the offering and its intended use of proceeds. However, these are subject to market conditions and the satisfaction of customary closing conditions. Phathom has cautioned that actual results could differ from expectations due to inherent risks and uncertainties.
This news is based on a press release statement from Phathom Pharmaceuticals.
In other recent news, Phathom Pharmaceuticals has seen significant developments. The company's second-quarter financial results revealed a topline revenue of $7.3 million for its Voquezna asset, surpassing Goldman Sachs and Visible Alpha consensus estimates. Goldman Sachs has since increased Phathom's price target to $12, maintaining a neutral stance. The FDA has also approved Voquezna oral tablets for a broader range of uses within the gastroesophageal reflux disease (GERD) treatment market, which includes Non-Erosive GERD, constituting over 70% of the GERD market. This development is anticipated to create substantial growth opportunities for Phathom, according to H.C. Wainwright and Stifel, both of which maintain a buy rating for the company. CVS Caremark, the largest pharmacy benefit manager in the U.S., has included Voquezna in its commercial formularies, increasing access to over 26 million commercially insured members. These are some of the recent developments surrounding Phathom Pharmaceuticals.
InvestingPro Insights
As Phathom Pharmaceuticals (NASDAQ: PHAT) progresses with its public offering, investors might be eyeing the company's financial health and market performance. According to InvestingPro data, Phathom has a market capitalization of approximately $728.62 million. The company's revenue over the last twelve months as of Q2 2024 stands at $9.92 million, with a substantial gross profit margin of 80.15%. Despite these figures, Phathom's operating income margin reflects significant losses, with an adjusted operating income of -$252.79 million for the same period.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they also foresee challenges, such as Phathom's quick cash burn and an expected drop in net income. Furthermore, analysts do not predict profitability for the company within this year. However, it's noteworthy that Phathom's liquid assets surpass its short-term obligations, which may provide some financial flexibility in the near term. Additionally, the company has experienced a strong return over the last month, three months, and six months, with the latest figures showing a 34.02% price total return over the past six months.
For investors considering the company's future prospects, it is important to note that Phathom does not pay dividends, which might influence investment decisions depending on individual strategies. Those seeking more detailed analysis and additional InvestingPro Tips can explore the 11 tips available on the platform, which provide deeper insights into Phathom's financials and market performance.
Investors may also find the fair value assessments useful; while analyst targets suggest a fair value of $24, InvestingPro's own fair value estimate is $13.63. As the company moves towards its next earnings date on November 6, 2024, stakeholders will be watching closely to see how the company's strategic initiatives, including the commercialization of vonoprazan, may impact its financial trajectory.
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