Phathom Pharmaceuticals, Inc. (PHAT) completed a $130 million underwritten public offering on January 10, 2026, selling common stock and pre‑funded warrants. The proceeds are earmarked for general corporate purposes, including working capital, commercialization of its flagship drug VOQUEZNA, and ongoing research and development activities.
The offering extends Phathom’s cash runway beyond the $130 million in cash and cash equivalents it held at the end of 2025, and it follows a net cash usage of roughly $6 million in the fourth quarter of 2025. The capital raise is intended to support the company’s aggressive growth strategy, which centers on expanding VOQUEZNA’s market share in the GERD and H. pylori indications while pursuing additional indications such as eosinophilic esophagitis.
VOQUEZNA has already achieved a milestone of one million U.S. prescriptions dispensed since launch, and preliminary fourth‑quarter 2025 revenue of $57–$58 million is on track to help the company reach full‑year 2025 sales of $174.5–$175.5 million. Management has reiterated its goal of achieving operating profitability in the second half of 2026, a target that the new capital infusion is designed to help meet by providing the liquidity needed for commercial expansion and continued investment in the product pipeline.
The equity offering is the largest financing event for Phathom since its initial public offering, although the company has had prior capital raises. Investors have expressed concerns about dilution and the company’s ongoing cash burn, which tempered enthusiasm for the transaction. Nonetheless, the raise strengthens Phathom’s balance sheet and positions the company to accelerate VOQUEZNA’s commercial launch, secure payer access, and expand physician awareness in the U.S. market.
Phathom’s management emphasized that the capital raise will allow the company to maintain its current pace of investment in marketing and sales while preserving the ability to fund future clinical development. The company also highlighted its recent regulatory successes, including the resolution of a nitrosamine impurity issue that had temporarily halted VOQUEZNA’s approval, and the receipt of a $175 million payment following the FDA approval of VOQUEZNA for erosive GERD.
The company’s pipeline remains robust, with a phase III trial for VOQUEZNA in eosinophilic esophagitis slated to report topline results in 2027. The equity offering, therefore, not only supports current commercial activities but also provides a financial cushion for future product development.
Overall, the $130 million equity raise is a significant event that bolsters Phathom’s financial position, supports its growth strategy around VOQUEZNA, and signals management’s confidence in achieving profitability by the end of 2026.
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