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Phathom Pharmaceuticals(PHAT) - 2024 Q3 - Quarterly Report
PHATPhathom Pharmaceuticals(PHAT)2024-11-07 21:05
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Financial Performance - Product revenue for the three months ended September 30, 2024, was 16.352million,comparedto16.352 million, compared to 0 for the same period in 2023[9] - Gross profit for the nine months ended September 30, 2024, was 21.430million,withagrossmarginreflectingasignificantincreasefrompreviousperiods[9]−ThenetlossforthethreemonthsendedSeptember30,2024,was21.430 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 43.243millionforthesameperiodin2023[9]−Thecompanyreportedanetlossof43.243 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 122,022,000forthesameperiodin2023,indicatingasignificantincreaseinlosses[18]−Thecompanyreportedanetlossof122,022,000 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 43.2millionforthesameperiodin2023,indicatingaworseningfinancialperformance[9]OperatingExpenses−TotaloperatingexpensesforthethreemonthsendedSeptember30,2024,were43.2 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 97.4millionforthesameperiodin2023,reflectinganincreaseinresearchanddevelopmentandselling,general,andadministrativeexpenses[9]−ResearchanddevelopmentexpensesfortheninemonthsendedSeptember30,2024,totaled97.4 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 36.505millioninthesameperiodlastyear,indicatingapotentialshiftinfocus[9]−Stock−basedcompensationfortheninemonthsendedSeptember30,2024,was36.505 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 20,441,000forthesameperiodin2023[18]−AdvertisingandmarketingcostsforthethreeandninemonthsendedSeptember30,2024wereapproximately20,441,000 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 41.0million,respectively[63]CashandLiquidity−Cashandcashequivalentsdecreasedto41.0 million, respectively[63] Cash and Liquidity - Cash and cash equivalents decreased to 334.678 million as of September 30, 2024, down from 381.393millionattheendof2023[7]−Cashandcashequivalentsattheendoftheperiodwere381.393 million at the end of 2023[7] - Cash and cash equivalents at the end of the period were 337,540,000, up from 216,535,000attheendofSeptember2023[18]−Thecompanyhassufficientworkingcapitaltofundoperationsforatleastthenexttwelvemonths,butfuturefundingsuccessisuncertain[22]−Thecompanyhasincurrednetlossesandnegativecashflowsfromoperatingactivitiessinceinception,withnetproceedsfromequityofferingstotalingapproximately216,535,000 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 574.156millionasofSeptember30,2024,comparedto574.156 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 1.188billionasofSeptember30,2024,from1.188 billion as of September 30, 2024, from 1.102 billion at the end of 2023[11] - The total additional paid-in capital increased to 1,001,442thousandasofSeptember30,2024,from1,001,442 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 0.3millionand0.3 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 121.8millionfromanunderwrittenpublicofferinginAugust2024,contributingtototalnetproceedsofapproximately121.8 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 200millionto200 million to 300 million, with various tranches available subject to milestones[93] - The Revenue Interest Financing Agreement allows the Company to receive up to 260million,with260 million, with 100 million received at the initial closing and an additional 160millionuponFDAapprovalofVOQUEZNA[103]StockandShareholderInformation−Thecompanyreportedaweighted−averagesharecountof64.628millionforthethreemonthsendedSeptember30,2024,comparedto56.782millionforthesameperiodin2023[9]−Thecompanyhasatotalof14,191,348commonstockreservesavailableforfutureissuanceasofSeptember30,2024[121]−ThecompanyfiledashelfregistrationstatementonFormS−3inNovember2023,allowingforthepotentialsaleofupto160 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]