Phathom Pharma rises as Craig-Hallum starts coverage with 'buy'

Phathom Pharmaceuticals

13/03/2023 13:59

** Shares of drug developer Phathom Pharmaceuticals Inc
 PHAT.O  up ~6% at $7.70 after Craig-Hallum initiates coverage
with "buy" rating and $21 PT
    ** PHAT's lead drug vonoprazan has the potential to be a
better option for patients with acid-related diseases such as
heartburn, says brokerage
    ** Last month, U.S. FDA declined to approve the company's
experimental drug to treat inflammation in esophagus
    ** Phathom can correct the nitrosamine impurity issue in the
vonoprazan drug and bring it to market with "blockbuster
potential" - brokerage
    ** Underneath PHAT's issues lies a "highly differentiated
drug de-risked by considerable clinical data", says Craig-Hallum
    ** 6 of 8 brokerages rate the stock "buy" or higher, 2
"hold"; median PT is $21 - Refinitiv
    ** Up to Friday's close, stock down ~35% YTD vs ~26% decline
in S&P 500 Pharmaceuticals sub index  .SPLRCCARD 
    

 (Reporting by Reshma Rockie George)
 ((Reshma.George@thomsonreuters.com))