Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) Director Frank Karbe has recently acquired 12,500 shares of the company's common stock. The purchase, made on December 13, 2024, was executed at a weighted average price of $7.9267 per share, totaling approximately $99,083. According to InvestingPro data, this insider buying comes as the stock trades below its Fair Value, with analyst targets ranging from $17 to $28. This transaction increased Karbe's total holdings to 57,000 shares. The shares were purchased in multiple transactions with prices ranging from $7.87 to $8.00. The timing appears strategic, as InvestingPro analysis shows the stock is in oversold territory, down 15% in the past week, while maintaining strong liquidity with a current ratio of 5.73. Additional ProTips and insights are available on InvestingPro.
In other recent news, Phathom Pharmaceuticals has seen a flurry of activity surrounding its product VOQUEZNA. H.C. Wainwright and Guggenheim have both maintained a Buy rating for the company, with a price target of $28, while Goldman Sachs (NYSE:GS) maintains a neutral stance with a raised price target of $12. Phathom's third-quarter earnings revealed a significant revenue outperformance, primarily driven by VOQUEZNA, with a net revenue of $16.4 million surpassing both analysts' and consensus estimates.
The company has also been proactive in its strategic moves, filing a Citizen's Petition with the FDA. This petition seeks to align the exclusivity period for its VOQUEZNA tablets with that of the VOQUEZNA Dual and Triple Pak, currently set at 10 years. Phathom has also announced a public offering expected to generate gross proceeds of about $130 million, which will be allocated for the commercialization and further clinical development of Vonoprazan, marketed in the U.S. as Voquezna.
Despite uncertainties around the exclusivity of VOQUEZNA, analysts project 74% revenue growth for the current fiscal year. However, the company is not expected to be profitable this year. It's worth noting that Phathom is quickly burning through cash, with negative free cash flow of $248 million in the last twelve months. These are recent developments and further clarity on the exclusivity and future financial health of the company are pending.
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