Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Phathom Pharmaceuticals, Inc.'s (NASDAQ:PHAT) business as it appears the company may be on the cusp of a considerable accomplishment. Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. On 31 December 2024, the US$346m market-cap company posted a loss of US$334m for its most recent financial year. As path to profitability is the topic on Phathom Pharmaceuticals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Phathom Pharmaceuticals

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$12m in 2027. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 62% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Phathom Pharmaceuticals' growth isn’t the focus of this broad overview, but, keep in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Phathom Pharmaceuticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Phathom Pharmaceuticals' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. 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.
2. 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.
3. 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.

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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.