PHAT Stock Clocks Worst Day In Over 1.5 Years — What Sparked The Selloff?

Phathom lowered its full-year 2026 net revenue outlook to $310–325 million from the prior $320–345 million range.

• Phathom said net revenue reached a record $74.3 million in the second quarter ended June 30, an 88% increase from $39.5 million a year earlier.
• CEO Steven Basta stated VOQUEZNA could reach $1 billion in annual revenue from GI specialists alone. 
• Management still expects operating profitability for the rest of the year and the full year on the same adjusted basis.

Shares of Phathom Pharmaceuticals Inc. (PHAT) plunged 22% on Thursday, clocking its worst day since November 2024, after the gastrointestinal-focused biotech lowered its full-year 2026 revenue outlook, even as second-quarter revenue largely met expectations and the company highlighted improved profitability metrics.

Strong Commercial Momentum For VOQUEZNA

Phathom said net revenue reached a record $74.3 million in the second quarter ended June 30, an 88% increase from $39.5 million a year earlier. Around 325,000 VOQUEZNA prescriptions were filled in the quarter, also up 88% year-over-year and 21% sequentially. Total prescriptions filled since launch stood at about 1.7 million as of mid-July. VOQUEZNA is approved to treat erosive and non-erosive gastroesophageal reflux disease and H. pylori infection.

CEO Steven Basta highlighted the company’s pivot toward gastroenterologists, expense reductions, and the drug’s long-term potential, stating VOQUEZNA could reach $1 billion in annual revenue from GI specialists alone, with another $1 billion opportunity in primary care.

The company achieved operating profitability excluding stock-based compensation for the first time. Adjusted net loss was just $0.1 million. Cash and equivalents stood at $182.5 million.

2026 Guidance

Phathom lowered its full-year 2026 net revenue outlook to $310–325 million from the prior $320–345 million range. Adjusted operating expense guidance, excluding stock-based compensation, was tightened to $235–245 million. Management still expects operating profitability for the rest of the year and the full year on the same adjusted basis.

Phathom is advancing two key clinical programs aimed at expanding VOQUEZNA’s label and market potential. Enrollment in the mid-stage pHalcon-EoE-201 trial—evaluating VOQUEZNA 20 mg once daily versus placebo in adults with eosinophilic esophagitis (EoE)—was completed ahead of schedule in June 2026. The study enrolled 95 patients with endoscopically confirmed EoE and dysphagia across 41 U.S. sites. Topline results from the 12-week double-blind treatment phase are expected in the fourth quarter of 2026. If positive, Phathom plans to discuss next steps with the FDA, including a possible pediatric program that could support a six-month extension of VOQUEZNA’s regulatory exclusivity.

Separately, the company expects to initiate a registrational late-stage program evaluating VOQUEZNA for as-needed use in non-erosive GERD. First-patient enrollment is targeted for the fourth quarter of 2026. Management views a successful outcome as a way to meet patient demand for potent, on-demand therapy and further expand the drug’s commercial opportunity.

How Did PHAT Retail Traders React?

On Stocktwits, retail sentiment around PHAT stock jumped from bearish to bullish territory over the past 24 hours, while message volume rose from normal to extremely high levels.

A Stocktwits user termed the selloff on Thursday as “overdone.”

Another user expressed hopes for a rebound next week.

PHAT stock has lost 46% year-to-date. 

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