Phathom Pharmaceuticals (PHAT): Assessing Valuation After First Patient Dosed in VOQUEZNA EoE Phase 2 Trial

Phathom Pharmaceuticals (PHAT) has started dosing the first patient in its Phase 2 clinical trial for VOQUEZNA, targeting eosinophilic esophagitis in adults. This marks a meaningful step in broadening the therapeutic reach of VOQUEZNA.

See our latest analysis for Phathom Pharmaceuticals.

That milestone comes in the wake of a few busy weeks for Phathom Pharmaceuticals, including conference presentations and improved revenue guidance for 2025. The 1-year total shareholder return of nearly 50% reflects momentum building around the stock, supported by a 99% year-to-date share price return that signals renewed optimism about future growth and a shift in risk perception.

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With shares up nearly 100% year-to-date but still trading at a significant discount to analyst targets, the real question is whether Phathom remains undervalued or if the market has already priced in the potential for future growth.

Most Popular Narrative: 36.8% Undervalued

Phathom Pharmaceuticals' current share price of $14.62 sits well below the most popular narrative's fair value estimate of $23.13, amplifying expectations for significant upside as growth drivers come into focus.

The upcoming launch of the EoE Phase II trial and opportunity for additional indications (including potential pediatric exclusivity extension) positions Phathom to grow its addressable market and drive future top-line expansion.

Read the complete narrative.

Curious how analysts arrive at such a bullish fair value? Their story hints at remarkable gains in future margins and a dramatic turnaround in the company’s bottom line. The levers they’re pulling here are not just revenue forecasts. Analysts are making deeper structural bets on growth and profitability. Want to see what number-crunching justifies this exciting target? The full narrative reveals the bold assumptions powering this valuation.

Result: Fair Value of $23.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, key risks remain, including Phathom’s dependence on a single product and ongoing reimbursement access challenges. These factors could quickly dampen the bullish outlook.

Find out about the key risks to this Phathom Pharmaceuticals narrative.

Build Your Own Phathom Pharmaceuticals Narrative

If you see things differently or value doing your own research, you can assemble your own Phathom narrative in just minutes. Do it your way

A great starting point for your Phathom Pharmaceuticals research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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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