Why Phathom Pharmaceuticals (PHAT) Is Down 6.0% After $130 Million Equity Raise And 2025 Guidance Update

• Phathom Pharmaceuticals recently completed a roughly US$130.0 million follow-on offering of common stock and pre-funded warrants, alongside new shelf registrations covering additional common stock and other securities, and issued earnings guidance indicating expected net revenues of about US$57.0 million–US$58.0 million for fourth quarter 2025 and US$174.5 million–US$175.5 million for full-year 2025, with operating profitability targeted in the second half of 2026 excluding stock-based compensation.
• The combination of fresh capital, expanded financing flexibility, and clearer revenue and profitability timelines gives investors more detail on how Phathom plans to fund commercialization and research while moving toward breakeven.
• Next, we’ll examine how this capital raise and updated profitability timeline affect Phathom’s existing investment narrative around growth, risk, and funding.

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Phathom Pharmaceuticals Investment Narrative Recap

To own Phathom, you need to believe VOQUEZNA can support a durable U.S. GI franchise while the company manages reimbursement risk and funds its way to profitability. The new US$130.0 million raise and 2025 guidance do not change the core near term catalyst around prescription growth and market access, but they do partially ease the immediate funding risk by clarifying how Phathom expects to reach operating breakeven in 2026.

The most relevant update here is management’s guidance for US$174.5 million to US$175.5 million in 2025 net revenue and a target of operating profitability in the second half of 2026, excluding stock based compensation. Those milestones sit alongside the existing VOQUEZNA growth story and upcoming indication work, giving investors a clearer timing framework for when today’s heavy spending might translate into a self funded business.

Yet despite this improved visibility on funding and profitability, investors still need to be aware of how much Phathom depends on a single product and how vulnerable that leaves future cash flows if ...

Read the full narrative on Phathom Pharmaceuticals (it's free!)

Phathom Pharmaceuticals’ narrative projects $612.6 million revenue and $155.5 million earnings by 2028.

Uncover how Phathom Pharmaceuticals' forecasts yield a $22.90 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span a wide range, from US$4.49 to US$145.91, underscoring how far apart individual views can be. Set against this, the company’s reliance on VOQUEZNA and current U.S. only focus mean these investors are effectively weighing the same concentration risk very differently, so it is worth comparing several viewpoints before forming your own.

Explore 3 other fair value estimates on Phathom Pharmaceuticals - why the stock might be worth less than half the current price!

Build Your Own Phathom Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Phathom Pharmaceuticals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Phathom Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Phathom Pharmaceuticals' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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