On Thursday, Goldman Sachs adjusted its outlook on Phathom Pharmaceuticals (NASDAQ:PHAT), increasing the price target to $12.00 from the previous $10.00, while keeping a Neutral rating on the stock. The firm acknowledged a topline beat for Phathom's Voquezna, citing the drug's commercial progress despite its sales still being nominal.
Phathom Pharmaceuticals announced its second-quarter financial results earlier today, with topline revenue for its Voquezna asset reaching $7.3 million. This figure surpassed the Goldman Sachs and Visible Alpha consensus estimates of $5.5 million and $5.7 million, respectively.
The company reported that, as of July 26, there have been approximately 122,000 prescriptions written for Voquezna, with about 60,000 of those being filled, indicating a fill rate of around 49%. This is an increase from the 41% fill rate reported on April 19. Additionally, Phathom has seen its commercial coverage expand to about 77%, up from 48% at its last quarterly update.
Goldman Sachs expressed optimism about the gradual commercial progress of Voquezna and the recent expansion in commercial coverage. However, the firm is awaiting the normalization of commercial trends, gross-to-net (GTN) adjustments, and stocking dynamics.
Goldman Sachs also looks forward to a potential inflection point in net sales in the latter half of the year before fully committing to the drug's commercial potential and the stock overall.
The new 12-month price target of $12 reflects a modest increase from the previous target, signaling Goldman Sachs' cautious optimism about Phathom Pharmaceuticals' prospects. The firm's maintained Neutral rating suggests that, while there have been positive developments, there is still a need for further evidence of sustained commercial success.
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