Phathom Pharmaceuticals Pivots to GI Focus, Targets 2H 2026 Profitability, CEO Says at Guggenheim Summit

Core Insights - The company is shifting its sales focus towards gastroenterologists, who are seen as early adopters for treating patients with gastroesophageal reflux disease (GERD) [1][5] - Phathom Pharmaceuticals expects to achieve operating profitability in the second half of 2026 [2] - The company generated $55 million in revenue in 2024 and anticipates $175 million for 2025 [3] Business Strategy - The strategic pivot towards gastroenterology aims to target patients who remain symptomatic despite existing therapies, with approximately 40% of reflux patients still experiencing pain [4][5] - The company plans to maintain tighter operating expense discipline while continuing revenue growth through this focused approach [5][6] - Phathom is refilling open territories and aims to have around 300 sales representatives by the end of March [6] Market Dynamics - A seasonal dip in January prescriptions is attributed to typical market dynamics, including insurance plan resets and prior authorization requirements [8] - The company believes it can convert 20% to 30% of gastroenterology PPI script volume to its product VOQUEZNA, potentially generating $1 billion in revenue from this segment [12][13] Pipeline and Development - Phathom is developing an eosinophilic esophagitis (EoE) program, which could provide significant economic benefits and potential exclusivity extensions [14][15] - The company is exploring longer-term business development opportunities that align with its gastroenterology focus [17] Financial Position - A recent capital raise was aimed at addressing a significant debt overhang and improving the company's capital structure [10] - The company has a new chemical entity (NCE) exclusivity that extends through May 2032, with potential for further extensions [16]