H.C. Wainwright maintains Buy on Phathom stock, $20 target
Investing.com
Published Jun 09, 2025 07:30AM ET
On Monday, H.C. Wainwright reaffirmed its Buy rating on Phathom Pharmaceuticals (NASDAQ:PHAT) with a steady price target of $20.00. The stock, currently trading at $8.92 with a market capitalization of $621 million, has shown remarkable momentum with a 92% surge in the past week. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.58, despite operating with significant debt. The firm's analyst, Matthew Caufield, expressed confidence following the FDA's acknowledgment of a decade of regulatory exclusivity for Phathom's leading drug, VOQUEZNA (vonoprazan). The FDA's decision comes as a response to Phathom's Citizen Petition filed in December 2024, which sought to rectify the New Chemical Entity (NCE) exclusivity term for VOQUEZNA in the Orange Book.
The FDA's recent ruling grants VOQUEZNA a corrected 10-year NCE exclusivity period, now set to expire on May 3, 2032. This exclusivity covers VOQUEZNA's use in the treatment of Non-Erosive GERD (NERD), the healing and maintenance of Erosive GERD, and relief of associated heartburn, as well as its application in combination with antibiotics for H. pylori infection treatment. The company's impressive gross profit margin of 86.23% suggests strong potential for commercialization. For deeper insights into Phathom's financial health and growth prospects, InvestingPro subscribers can access 11 additional exclusive ProTips and comprehensive analysis. The decision importantly extends the full NCE exclusivity to all VOQUEZNA tablet products, surpassing the previously expected patent term exclusivity which was projected to extend into the mid-2030s.
With the NCE exclusivity issue resolved, Phathom is now poised to focus on implementing its commercial strategy and achieving its target of operating profit by 2026. While analysts anticipate sales growth in the current year, InvestingPro analysis indicates the company is currently unprofitable with significant cash burn. The analyst highlighted these objectives as not only attainable but also underscored by the secured NCE exclusivity which now extends through 2032. The firm's reiterated Buy rating and price target reflect a positive outlook on Phathom's near-term strategic execution abilities.
In other recent news, Phathom Pharmaceuticals received a significant boost after the U.S. Food and Drug Administration granted a 10-year exclusivity period for its drug VOQUEZNA, extending its market protection until May 2032. This decision aligns the exclusivity period for VOQUEZNA tablets with that of its combination therapies for H. pylori, ensuring no generic competition for an extended period. Analysts from firms like Goldman Sachs and Guggenheim have responded positively, with Goldman Sachs raising their price target to $12.00 and Guggenheim maintaining a Buy rating with a $12.00 target. Stifel analysts also reiterated their Buy rating, setting a higher price target of $28.00, citing the expected strong launch and demand for VOQUEZNA. Meanwhile, H.C. Wainwright adjusted their price target to $20.00 but maintained a Buy rating, noting strategic shifts in Phathom's marketing approach. The company has announced cost-reduction measures and aims for profitability by 2026 under its new CEO. These developments have eased previous uncertainties and are anticipated to attract new investor interest. Phathom's focus now turns to the commercial execution and optimization of its sales strategies to maximize the potential of VOQUEZNA in the market.
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Written By: Investing.com
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