Company Overview - Phathom Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases [3] - The company has in-licensed exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) [3] - Vonoprazan is marketed in the U.S. as VOQUEZNA® for treating heartburn associated with Non-Erosive GERD and for the healing and maintenance of Erosive GERD [3] Upcoming Events - Members of the management team will participate in a fireside chat at the Guggenheim Securities SMID Cap Biotech Conference on February 6, 2025, at 10:00 am ET [1] - The conference will take place from February 5-6, 2025, in New York, NY, and will include one-on-one meetings [2] - A live webcast and archived recording of the event will be available on the Phathom website for 90 days following the meeting [2]

Core Viewpoint - Phathom Pharmaceuticals, Inc. (PHAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Phathom Pharmaceuticals indicates a positive outlook on its earnings, which could positively affect its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates for Phathom Pharmaceuticals suggest an improvement in the company's underlying business, likely leading to an increase in stock price as investors respond to this trend [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [7]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, with a proven track record of performance [8]. Current Earnings Estimates for Phathom Pharmaceuticals - For the fiscal year ending December 2024, Phathom Pharmaceuticals is expected to earn -$4.34 per share, reflecting a year-over-year change of -71.5% [9]. - Over the past three months, the Zacks Consensus Estimate for Phathom Pharmaceuticals has increased by 21.5%, indicating a positive trend in earnings estimates [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [10]. - Phathom Pharmaceuticals' upgrade to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [12].

Financial Data and Key Metrics Changes - The company reported net revenues of $16.4 million for Q3 2024, representing over a 120% sequential quarter-over-quarter increase [36] - Gross profit for the quarter was $14 million, equating to a gross margin of 86%, an increase of about 440 basis points over the previous quarter [38] - The company ended the quarter with cash and cash equivalents of $335 million, bolstered by a $130 million equity financing [43][44] Business Line Data and Key Metrics Changes - VOQUEZNA achieved over 143,000 prescriptions filled since launch, with approximately 69,000 filled prescriptions recorded in Q3, nearly doubling the amount from Q2 [25][36] - The number of physicians writing filled prescriptions increased to over 13,600, up from over 8,200 in the previous report, indicating strong adoption [27] - The 10 mg dose for non-Erosive GERD saw an increase in filled prescriptions by over 230% between Q2 and Q3 [25] Market Data and Key Metrics Changes - VOQUEZNA's commercial access now covers over 120 million lives, or more than 80% of all U.S. commercial lives [30] - The company secured FDA approval for VOQUEZNA as a treatment for non-Erosive GERD, significantly expanding its addressable market to roughly 22 million U.S. adults [11] Company Strategy and Development Direction - The company aims to enhance brand awareness and commercial access for VOQUEZNA, focusing on primary care physicians as a key prescriber group [31][82] - The strategy includes expanding direct-to-consumer campaigns to increase patient awareness and drive prescriptions [33][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a blockbuster opportunity with VOQUEZNA, citing strong market interest and positive feedback from physicians and patients [22][23] - The company plans to continue monitoring trends and evaluating data before providing future revenue guidance [77][86] Other Important Information - The company reported a non-GAAP adjusted net loss of $67.9 million for Q3 2024, an improvement from a loss of $73.3 million in Q2 [41] - The company is in the final stages of obtaining FDA alignment for a Phase 2 program investigating VOQUEZNA as a potential treatment for Eosinophilic Esophagitis, planned to initiate in the first half of 2025 [20] Q&A Session Summary Question: Coverage uptake and prescription increase - Management indicated that the growth in prescriptions is a mix of increased access and demand tied to the non-Erosive GERD launch [52] Question: Duration of prescriptions - Most prescriptions are written for 30 days, with some for 60 or 90 days, depending on health plans [55] Question: Gross to net discount expectations - The company expects to remain within the pre-launch discount range of 50% to 65% [62] Question: Regulatory exclusivity for VOQUEZNA - Management confirmed that the exclusivity for VOQUEZNA should protect it from generic entries until 2032 [64] Question: Refill rates and comparison to PPIs - Refill rates are healthy and consistent with expectations for prescription PPIs, indicating a positive trend [68] Question: Primary care awareness and demand - Awareness among primary care physicians is growing, and new prescribers from this group have overtaken gastroenterologists [82] Question: Guidance for 2025 - The company will monitor trends before providing guidance for 2025, ensuring confidence in any projections made [86]

Financial Performance - Product revenue for the three months ended September 30, 2024, was $16.352 million, compared to $0 for the same period in 2023[9] - Gross profit for the nine months ended September 30, 2024, was $21.430 million, with a gross margin reflecting a significant increase from previous periods[9] - The net loss for the three months ended September 30, 2024, was $85.577 million, compared to a net loss of $43.243 million for the same period in 2023[9] - The company reported a net loss of $259,875,000 for the nine months ended September 30, 2024, compared to a net loss of $122,022,000 for the same period in 2023, indicating a significant increase in losses[18] - The company reported a net loss of $85.6 million for the three months ended September 30, 2024, compared to a net loss of $43.2 million for the same period in 2023, indicating a worsening financial performance[9] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $84.792 million, up from $35.659 million in the same period last year, indicating increased investment in R&D and SG&A[9] - The total operating expenses for the nine months ended September 30, 2024, were $239.5 million, significantly higher than $97.4 million for the same period in 2023, reflecting an increase in research and development and selling, general, and administrative expenses[9] - Research and development expenses for the nine months ended September 30, 2024, totaled $25.499 million, down from $36.505 million in the same period last year, indicating a potential shift in focus[9] - Stock-based compensation for the nine months ended September 30, 2024, was $17,360,000, down from $20,441,000 for the same period in 2023[18] - Advertising and marketing costs for the three and nine months ended September 30, 2024 were approximately $17.5 million and $41.0 million, respectively[63] Cash and Liquidity - Cash and cash equivalents decreased to $334.678 million as of September 30, 2024, down from $381.393 million at the end of 2023[7] - Cash and cash equivalents at the end of the period were $337,540,000, up from $216,535,000 at the end of September 2023[18] - The company has sufficient working capital to fund operations for at least the next twelve months, but future funding success is uncertain[22] - The company has incurred net losses and negative cash flows from operating activities since inception, with net proceeds from equity offerings totaling approximately $543.3 million as of September 30, 2024[21] Liabilities and Stockholders' Equity - Total liabilities increased to $574.156 million as of September 30, 2024, compared to $486.601 million at the end of 2023, reflecting higher long-term debt[7] - The company’s stockholders' deficit increased to $1.188 billion as of September 30, 2024, from $1.102 billion at the end of 2023[11] - The total additional paid-in capital increased to $1,001,442 thousand as of September 30, 2024, from $869,149 thousand at June 30, 2024[11] Revenue Recognition - The company recognizes revenue when a customer obtains control of promised goods or services, following a five-step model as per ASC 606[43] - Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration such as discounts and rebates[45] - The company estimates variable consideration for net product revenues based on market events, industry data, and customer payment patterns, which may lead to adjustments in revenue recognition[47] Customer Concentration - As of September 30, 2024, three customers accounted for 90% of the accounts receivable balance, with each customer representing 28% to 31% of the total[35] - For the three and nine months ended September 30, 2024, three customers accounted for 70% and 68% of product sales, respectively[35] Inventory Management - The company recorded approximately $0.3 million and $0.7 million in charges for inventory not expected to be sold prior to expiration for the three and nine months ended September 30, 2024, respectively[37] - The company states its inventory at the lower of cost or net realizable value, using a first-in, first-out basis for measurement[37] Financing Activities - The company generated net proceeds of approximately $121.8 million from an underwritten public offering in August 2024, contributing to total net proceeds of approximately $543.3 million since inception[21] - The Company entered into a Fourth Amendment to the Loan Agreement, increasing the aggregate principal amount of term loans from $200 million to $300 million, with various tranches available subject to milestones[93] - The Revenue Interest Financing Agreement allows the Company to receive up to $260 million, with $100 million received at the initial closing and an additional $160 million upon FDA approval of VOQUEZNA[103] Stock and Shareholder Information - The company reported a weighted-average share count of 64.628 million for the three months ended September 30, 2024, compared to 56.782 million for the same period in 2023[9] - The company has a total of 14,191,348 common stock reserves available for future issuance as of September 30, 2024[121] - The company filed a shelf registration statement on Form S-3 in November 2023, allowing for the potential sale of up to $150 million of common stock[118] Regulatory Approvals and Product Launches - The FDA approved the NDA for VOQUEZNA tablets on November 1, 2023, and the commercial launch for VOQUEZNA began in Q4 2023[20] - The company initiated the commercial launch of VOQUEZNA TRIPLE PAK and VOQUEZNA DUAL PAK for H. pylori treatment in Q4 2023[20]

Financial Performance - Net revenues for Q3 2024 were $16.4 million, a sequential increase of over 120% from $7.3 million in Q2 2024[1] - Product revenue for the three months ended September 30, 2024, was $16,352,000, compared to $0 for the same period in 2023[16] - Gross profit for the nine months ended September 30, 2024, was $21,430,000, reflecting a decrease from $36,505,000 in the same period of 2023[16] - Total operating expenses for the three months ended September 30, 2024, were $84,792,000, up from $35,659,000 in the same period of 2023, representing a 137% increase[16] - Net loss for Q3 2024 was $85.6 million, compared to $43.2 million in Q3 2023, with a non-GAAP adjusted net loss of $67.9 million[7] - Net loss for the three months ended September 30, 2024, was $85,577,000, compared to a net loss of $43,243,000 for the same period in 2023[16] - Non-GAAP adjusted net loss for the three months ended September 30, 2024, was $67,850,000, compared to $30,846,000 for the same period in 2023[17] - Net loss per share, basic and diluted, for the three months ended September 30, 2024, was $(1.32), compared to $(0.76) for the same period in 2023[16] Expenses - R&D expenses decreased to $8.7 million in Q3 2024, down from $12.3 million in Q3 2023, due to lower clinical trial costs[6] - SG&A expenses increased to $76.1 million in Q3 2024, up from $23.4 million in Q3 2023, driven by higher personnel costs and marketing activities[6] - Stock-based compensation expense for the three months ended September 30, 2024, was $5,635,000, compared to $6,140,000 for the same period in 2023[17] - Interest expense for the three months ended September 30, 2024, was $18,484,000, an increase from $10,107,000 in the same period of 2023[16] Market and Product Development - Over 143,000 prescriptions for VOQUEZNA products have been filled, representing a 138% increase since the last quarterly report[3] - Commercial access for VOQUEZNA now covers over 120 million U.S. commercial lives, which is over 80% of the U.S. commercial market[4] - The number of VOQUEZNA prescribers grew to over 13,600, an increase of over 65% from the previous quarter[3] - The recent approval for Non-Erosive GERD has expanded the market opportunity for VOQUEZNA significantly[2] - Phathom plans to initiate a Phase 2 study for Eosinophilic Esophagitis in the first half of 2025[5] Cash Position - Cash and cash equivalents as of September 30, 2024, were $334.7 million, with an additional $125 million available under the term loan[7] Share Information - Weighted-average shares of common stock outstanding, basic and diluted, were 64,627,847 for the three months ended September 30, 2024[18]

Company Overview - Phathom Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases [3] - The company has in-licensed exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) [3] - Vonoprazan is marketed in the U.S. as VOQUEZNA® for treating heartburn associated with Non-Erosive GERD and for healing Erosive GERD in adults [3] Upcoming Events - The company will host a live webcast on November 7, 2024, at 8:30 am ET to report its third quarter 2024 financial results and provide a business update [1] - Additional information and access to the webcast can be found on the Events & Presentations section of the Phathom website [2] - A recording of the webcast will be available for 90 days following the meeting [2]

FLORHAM PARK, N.J., Oct. 27, 2024 (GLOBE NEWSWIRE) -- Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases, today announced that the company will present data from multiple investigational studies for its first-in-class treatment VOQUEZNA® (vonoprazan) tablets at the American College of Gastroenterology (ACG) 2024 Annual Scientific Meeting, being held October 25-30 in Philadelphia, PA. VOQUEZNA ...

FLORHAM PARK, N.J., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases, announced today the pricing of its underwritten offering of 8,695,652 shares of its common stock and pre-funded warrants to purchase 2,608,922 shares of common stock. The shares of common stock are being sold at a price of $11.50 per share and the pre-funded warrants are being sold at a price ...

Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) Q2 2024 Results Conference Call August 8, 2024 8:30 AM ET Company Participants Eric Sciorilli - Head of Investor Relations Terrie Curran - President and CEO Martin Gilligan - Chief Commercial Officer Molly Henderson - Chief Financial Officer Azmi Nabulsi - Chief Operating Officer Conference Call Participants Annabel Samimy - Stifel Joseph Stringer - Needham & Company Yatin Suneja - Guggenheim Paul Choi - Goldman Sachs Chase Knickerbocker - Craig-Hallum Matthew Cau ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-39094 PHATHOM PHARMACEUTICALS, INC. (Exact name of Registrant as specified in its charter) Delaware 82-4151574 (State or other jurisdicti ...