Phathom Pharmaceuticals(US:PHAT)2024-11-07 21:05Financial 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]