$Phathom Pharmaceuticals (PHAT.US)$ In a report released tod...
$Phathom Pharmaceuticals(PHAT.US$ In a report released today, from Needham maintained a Buy rating on Phathom Pharmaceuticals ( – ), with a price target of $26.00.
Joseph Stringer has given his Buy rating due to a combination of factors surrounding the recent developments at Phathom Pharmaceuticals. Stringer’s optimism is anchored in the approval of Voquezna for Non-Erosive GERD (NERD), a market considerably larger than the drug’s previous indications. This label expansion is expected to have a swift and favorable impact on prescription counts, as it can be immediately promoted by the existing sales force already active in the field. Moreover, with around half of the commercial insurance plans likely to cover the new indication, this adds further momentum for the company’s growth prospects.
Further fueling the Buy rating is the anticipated insurance coverage expansion and the projected financial performance of Voquezna. Stringer anticipates that these developments will act as catalysts for the drug’s sales, especially in the second half of 2024. Needham’s sales estimate for Voquezna remains unchanged at $47.8 million, which is notably higher than the consensus estimate of $41.5 million. The projection of reaching peak sales of approximately $1.2 billion for the NERD indication underscores the significant market opportunity and justifies the positive outlook on Phathom Pharmaceuticals’ stock.
Joseph Stringer has given his Buy rating due to a combination of factors surrounding the recent developments at Phathom Pharmaceuticals. Stringer’s optimism is anchored in the approval of Voquezna for Non-Erosive GERD (NERD), a market considerably larger than the drug’s previous indications. This label expansion is expected to have a swift and favorable impact on prescription counts, as it can be immediately promoted by the existing sales force already active in the field. Moreover, with around half of the commercial insurance plans likely to cover the new indication, this adds further momentum for the company’s growth prospects.
Further fueling the Buy rating is the anticipated insurance coverage expansion and the projected financial performance of Voquezna. Stringer anticipates that these developments will act as catalysts for the drug’s sales, especially in the second half of 2024. Needham’s sales estimate for Voquezna remains unchanged at $47.8 million, which is notably higher than the consensus estimate of $41.5 million. The projection of reaching peak sales of approximately $1.2 billion for the NERD indication underscores the significant market opportunity and justifies the positive outlook on Phathom Pharmaceuticals’ stock.
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