Phathom extends losses as FDA seeks more data on acid blocker drug

Phathom Pharmaceuticals

04/01/2023 16:37

** Shares of drug developer Phathom Pharmaceuticals Inc 
 PHAT.O  fall ~33% to $8.02
    ** Co said late on Tuesday the U.S. Food and Drug
Administration (FDA) will not be taking any action on its
marketing application for acid blocking drug by the target date
of Jan. 11
    ** FDA has asked for additional stability data on the drug
after co detected nitrosamine impurity in commercial batches of
the drug in August
    ** At least two brokerages have cut their PTs on co
    ** Brokerage Needham cuts PT to $25 from $38, says the delay
to the launch is a surprise to investors and introduces some
uncertainty around the probability of success of the approval
    ** Brokerage BMO Capital Markets trims PT to $35 from $38;
pushes the launch to late 2023 
    ** PHAT is seeking approval for its drug, vonoprazan, as a
potential treatment for erosive esophagitis, which causes
inflammation of the esophagus and wears away its lining
    ** The stock fell ~29% last year
 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com;))