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

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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.
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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.
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