Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT): Are Analysts Optimistic?
Phathom Pharmaceuticals, Inc. () is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Phathom Pharmaceuticals, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company's loss has recently broadened since it announced a US$334m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$346m, moving it further away from breakeven. Many investors are wondering about the rate at which Phathom Pharmaceuticals will turn a profit, with the big question being 'when will the company breakeven?' We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.
Consensus from 8 of the American Pharmaceuticals analysts is that Phathom Pharmaceuticals is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$95m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 68%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Phathom Pharmaceuticals given that this is a high-level summary, however, take into account that generally pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
View our latest analysis for Phathom Pharmaceuticals
Before we wrap up, there's one issue worth mentioning. Phathom Pharmaceuticals currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are key fundamentals of Phathom Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Phathom Pharmaceuticals, take a look at Phathom Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:
Valuation: What is Phathom Pharmaceuticals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Phathom Pharmaceuticals is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Phathom Pharmaceuticals's board and the CEO's background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
—
Investing narratives with Fair Values
A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor
Fair Value Estimated: CA$12.29 · 0.9% Overvalued
DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor
Fair Value Estimated: $195.39 · 0.9% Overvalued
Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor
Fair Value Estimated: SEK232.58 · 0.1% Overvalued
View more featured narratives
—
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Authors call on publishers to limit their use of AI
An open letter from authors including Lauren Groff, Lev Grossman, R.F. Kuang, Dennis Lehane, and Geoffrey Maguire calls on book publishers to pledge to limit their use of AI tools, for example by committing to only hire human audiobook narrators. The letter argues that authors' work has been 'stolen' by AI companies: 'Rather than paying writers a small percentage of the money our work makes for them, someone else will be paid for a technology built on our unpaid labor.' Among other commitments, the authors call for publishers to 'make a pledge that they will never release books that were created by machine' and 'not replace their human staff with AI tools or degrade their positions into AI monitors.' While the initial letter was signed by an already impressive list of writers, NPR reports that another 1,100 signatures were added in the 24 hours after it was initially published. Authors are also suing tech companies over using their books to train AI models, but federal judges dealt significant blows to those lawsuits earlier this week.
Yahoo
25 minutes ago
- Yahoo
Tipalti's Darren Upson on the strategic use of AI-driven finance
Tipalti currently serves over 5,000 companies via AI-driven solutions to automate finance operations. These include accounts payable, employee expenses, global pay-outs, procurement, supplier management, and tax compliance. What should excite Tipalti's backers is the sheer scale of the addressable market of prospects not yet using AI-powered finance software. 'There are a huge number of companies, especially those of a more traditional nature, that have not even scratched the surface of automation and what it can do for their businesses,' says Darren is a fully automated, cloud-based platform that simplifies the most complex finance workflows, helping its clients manage end-to-end payables across multiple entities, currencies, and countries—with built-in compliance. And its seamless ERP integrations gives complete visibility and control. So, it eliminates manual work and speeds up the entire payables process, automating everything from invoice approval to global payments and reconciles data seamlessly. That summary is hardly over-techy and should be understandable to even the most basic of business leaders. The Tipalti proposition is boosted by the backing of JPMorgan Chase, which is about as good as it gets if you had the widest possible choice of potential financial backers. Back in 2023, Tipalti raised $150m in growth financing from JPMorgan and Hercules Capital. At the time, it brought total funding to more than $550m and valued the firm at over $8bn. JPMorgan is also one of the major banks Tipalti uses to route its billions of dollars' worth of supplier payments on behalf of its customers. 'We work in the fintech space as an automation platform for accounts payable and also mass payments as well. We are both a software company and a financial services business. We execute payments for our businesses and we handle the whole accounts payable process from start to finish, basically stripping out all of the manual, redundant processes associated with accounts payable. 'As that is the most time-consuming part of finance, we're trying to help organisations, especially those fast-growing businesses, to actually put their people to better use and leverage technology to really do that manual, repetitive work more efficiently, faster and to be more scalable as well.' He says that a typical client firm will be high-growth, pre-IPO outfits that have already embraced automation. They will be firms that understand how automation enables them to be more agile as an organisation. 'The big challenge that exists now is individuals' understanding the art of the possible. There's a lot of people that think that they've already automated everything they can do. But there's always more and with AI tools and the technology that exists out there, there's so many more areas across an organisation that you can automate to create more efficiency, especially when businesses are looking to try and retain and attract talent as well. It's about, how do they make sure that the people that are coming into the workforce now are doing roles that are actually fulfilling and that they enjoy.' In the run up to the UK's Labour government first budget, there was much negative press coverage forecasting doom and gloom if taxes such as capital gains tax were raised. In the end, the rate of increase was not as steep as the most pessimistic forecasts but CGT did rise from 20% to 24% for higher rate taxpayers. And given the track record over history of past Labour governments, further tax rises are more likely than any tax cuts. Upson says that the UK is still the number one destination out of North America for start-ups. 'We've got such a hotbed of talent, and we've got a large banking infrastructure in place as well. So [tax changes] do not mean that the lights are going to go out overnight. But I think that there have to be more incentives to actually attract and support individuals that are looking to build the next big thing.' "Tipalti's Darren Upson on the strategic use of AI-driven finance" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
The Verge
30 minutes ago
- The Verge
Trump's T1 phone drops its ‘Made in the USA' promise.
Trump's T1 phone drops its 'Made in the USA' promise. This week on The Vergecast , we revisited how the flagship Trump Mobile phone suddenly swapped out its 'Made in the USA' claim for 'Designed with American values in mind.' We already had our guesses about who might really make the T1, but with new specs and screen size, we might have to do another round of investigation.
