Summary of Phathom Pharmaceuticals Conference Call Company Overview - **Company**: Phathom Pharmaceuticals - **Product**: VOQUEZNA, a next-generation treatment for gastroesophageal reflux disease (GERD) licensed from Takeda, which has shown significant success in Japan [2][4] Market Opportunity - **Target Market**: Focus on the 30%-40% of GERD patients who are on PPIs (Proton Pump Inhibitors) but still experience symptoms [3][6] - **Revenue Growth**: Achieved $55 million in revenue in 2024, with guidance for $170-$175 million in 2025 [3] - **Gastroenterology Focus**: Shifted strategy to concentrate on gastroenterology, which is expected to drive growth over the next few years [3][19] Competitive Landscape - **Market Positioning**: VOQUEZNA is not positioned as a direct competitor to PPIs; it is intended for patients who have failed prior PPI therapy [12][13] - **Prescription Opportunity**: There are approximately 20 million PPI prescriptions written annually by gastroenterologists, representing a significant market for VOQUEZNA [7][9] Sales Strategy - **Sales Force Reallocation**: 70% of sales efforts are now focused on gastroenterologists, up from 30% previously targeting primary care [19][21] - **Productivity Metrics**: Sales calls to gastroenterologists yield four times the productivity compared to primary care [21] Exclusivity and Regulatory Strategy - **Exclusivity Timeline**: VOQUEZNA has exclusivity through May 2032, with potential extensions into 2034 depending on ongoing trials and FDA reviews [28][29] - **GAINS Act Utilization**: The company successfully leveraged the GAINS Act to extend exclusivity for the product [27] Financial Projections - **Revenue Potential**: Aiming for $1 billion in revenue from the gastroenterology market, with a clear path to achieving this through increased market penetration [10][36] - **Growth Rate Stability**: The company has maintained a stable growth rate despite the transition in sales strategy [24][44] Coverage and Access - **Insurance Coverage**: VOQUEZNA is covered by over 80% of commercial lives, with varying requirements for prior PPI failures [17][46] - **Cash Pay Strategy**: The company is also focusing on cash pay prescriptions to ensure patient access, which can later convert to covered prescriptions [53][56] Patient Experience and Persistence - **Patient Retention**: Early data suggests strong persistence rates for patients switching to VOQUEZNA, driven by significant symptom relief [42][40] - **Long-term Outlook**: The company anticipates that positive patient experiences will lead to sustained prescription growth over time [57] Conclusion - Phathom Pharmaceuticals is strategically positioned to capture a significant share of the GERD treatment market through VOQUEZNA, with a focused sales strategy, strong revenue growth, and a clear path to exclusivity that supports long-term financial success [36][58]

Summary of Phathom Pharmaceuticals Conference Call Company Overview - **Company**: Phathom Pharmaceuticals - **Product**: VOQUEZNA, a first-in-class P-CAB approved for gastroesophageal reflux disease (GERD) treatment - **Market Focus**: Targeting patients who are refractory to traditional PPI therapies Key Points and Arguments Commercial Strategy and Market Focus - Phathom has pivoted its commercial strategy to focus more on the gastroenterology (GI) community, which is where the majority of patients experiencing significant GERD symptoms are referred [4][6] - The company aims to target the 20 million PPI prescriptions written within GI practices, with a current penetration of approximately 3% [10][11] - The goal is to increase penetration to 20%-30% within the GI community, potentially generating $1 billion in revenue from this segment alone [12] Financial Performance - Revenue growth has been significant, with $10 million increases from Q1 to Q2 and Q2 to Q3, reaching $49.5 million in Q3 [7][8] - Operating expenses were reduced from $98 million in Q1 to $49 million in Q3, achieving a 50% cut in cash operating expenses [8] - The company expects to reach positive operating profit by 2026, focusing on cash basis excluding stock compensation and interest expenses [9] Sales Force Realignment - The sales force has been realigned to focus 70% of their time on gastroenterologists, shifting from a previous 70/30 split favoring primary care [20][27] - Territories have been remapped to optimize call frequency on gastroenterologists, allowing for better engagement and education about VOQUEZNA [29] Adoption and Utilization - Adoption patterns among physicians are gradual, with initial focus on patients who have failed multiple PPI therapies [18][19] - The company tracks physician prescribing frequency to reinforce habits and increase script volume [45][46] - There is a strong emphasis on patient feedback to encourage physician adoption, as patients report significant improvements in their symptoms [32][66] Medicare and Patient Access - The introduction of Medicare coverage has positively impacted prescription volumes, with a notable increase in cash prescriptions due to the availability of the Blink patient assistance platform [48][56] - The company is tracking both covered and cash prescriptions separately, with cash prescriptions growing since the Medicare rollout [49][56] Future Opportunities - Phathom is initiating a clinical trial for eosinophilic esophagitis (EOE), which could lead to additional market opportunities and an extension of exclusivity for VOQUEZNA [67][70] - Successful trials could result in a six-month exclusivity extension, potentially delaying generic competition until late 2033 or 2034 [70] Additional Important Insights - The company has implemented financial discipline in its spending, which is expected to support future profitability [72] - The transformative effect of VOQUEZNA on patient quality of life is a key selling point that is expected to drive further adoption among physicians [33][66]

Financial Data and Key Metrics Changes - The company reported net revenue of $49.5 million for Q3 2025, representing a 25% growth quarter-over-quarter, exceeding expectations of approximately $47 million [9][24] - Cash operating expenses were $49.3 million, significantly lower than the target of below $60 million, marking a 43% decrease from Q2 2025 and a 50% decrease from Q1 2025 [10][27] - Cash usage for Q3 was less than $15 million, down 77% compared to Q2 [10][29] - The company narrowed its full-year revenue guidance to the top half of the previously communicated range, now expecting $170 to $175 million [24] Business Line Data and Key Metrics Changes - The company reported 790,000 filled prescriptions as of October 17, 2025, with Q3 seeing 221,000 filled prescriptions, of which 144,000 were covered prescriptions, growing approximately 23% quarter-over-quarter [11][12] - Cash prescriptions filled in Q3 totaled 77,000, reflecting a 38% growth quarter-over-quarter [12] Market Data and Key Metrics Changes - The company has shifted its focus to gastroenterology prescribers, with 70% of prescriptions coming from gastroenterologists [12][13] - The target universe for gastroenterology includes approximately 24,000 writers, with an opportunity to convert 20% to 30% of the 20 million PPI prescriptions written annually, potentially exceeding $1 billion in revenue [16][17] Company Strategy and Development Direction - The company is concentrating on a gastroenterology-focused strategy, aiming to deepen relationships with prescribers rather than broadening the base [12][13] - A salesforce realignment has been implemented to better target gastroenterology practices, with expectations of approximately 300 sales representatives by Q1 2026 [15][90] - The company is also initiating a Phase 2 clinical trial for eosinophilic esophagitis, which could enhance its market position if successful [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operating profitability by 2026, supported by reduced cash operating expenses and growing revenues [29][75] - The company is monitoring prescription trends and believes that the current cash balance can support operations through the anticipated point of achieving profitability [29][30] Other Important Information - The company has updated its exclusivity status with the FDA, now having exclusivity through May 2032, which may extend to 2033 due to ANDA filing timelines [19][20] - There has been no disruption in the availability of the triple pack product, despite previous concerns [20] Q&A Session Summary Question: Prescription growth expectations for Q4 - Management acknowledged that while prescription growth has been strong, guidance for Q4 reflects a balance between ongoing momentum and the salesforce transition [33][35] Question: Impact of advertising cuts on future quarters - Management indicated that the cuts were not driving top-line growth and do not expect a negative impact from the paused advertising [36] Question: Focus on primary care physicians (PCPs) - The company continues to engage with high-performing PCPs while shifting the majority of salesforce time to gastroenterology [40][41] Question: Sales territory realignment and productivity - The territory realignment has been executed, and the company expects to see productivity reflected in the top line as new representatives are onboarded [89][90] Question: Factors for expanding back into primary care - The decision to return to primary care will depend on metrics such as NBRX per sales call, which is currently higher in gastroenterology [91][92]

THIRD QUARTER 2025 EARNINGS CONFERENCE CALL Question & Answer Steven Basta, President & Chief Executive Officer Sanjeev Narula, Chief Financial and Business Officer Robert Breedlove, Principal Accounting Officer OCTOBER 2025 NASDAQ: PHAT Today's Agenda Business Update Steven Basta, President & Chief Executive Officer Q3 2025 Financial Results Sanjeev Narula, Chief Financial and Business Officer Closing Remarks Steven Basta, President & Chief Executive Officer 2 Safe harbor This presentation contains forward ...

Core Insights - Phathom Pharmaceuticals reported strong financial results for Q3 2025, with a focus on its gastrointestinal (GI) treatment strategy and commercial performance of VOQUEZNA tablets [2][5][10] Financial Performance - Net revenues for Q3 2025 reached $49.5 million, a 25% increase from the previous quarter, and a significant rise from $16.4 million in Q3 2024 [10][18] - Cash operating expenses decreased by 43% quarter over quarter, reflecting disciplined cost management [5][10] - The company updated its full-year 2025 revenue guidance to a range of $170 million to $175 million, with expectations of achieving operating profitability in 2026 [5][10] VOQUEZNA Commercial Progress - Over 790,000 total VOQUEZNA prescriptions have been filled to date, with a 28% increase in filled prescriptions from Q2 2025 [5][6] - The company has initiated a Phase 2 trial for VOQUEZNA in Eosinophilic Esophagitis (EoE), with patient screening underway [6][7] - VOQUEZNA's commercial coverage remains stable, with over 80% of U.S. commercial lives covered [6] Leadership and Strategic Initiatives - Phathom strengthened its leadership team by appointing Sanjeev Narula as Chief Financial and Business Officer and Nancy Phelan as Senior Vice President, Marketing and Analytics [6] - The company has focused on enhancing engagement with gastroenterologists through targeted sales efforts and a national sales territory realignment [6] Research and Development - R&D expenses for Q3 2025 were $7.0 million, down from $8.7 million in Q3 2024, indicating a focus on cost efficiency [10][18] - Additional data from the Phase 3 pHalcon-NERD-301 trial showed VOQUEZNA improved nocturnal GERD symptoms, highlighting its clinical efficacy [6]

Core Viewpoint - Phathom Pharmaceuticals has appointed Sanjeev Narula as Chief Financial and Business Officer to enhance its leadership team and support its growth strategy, particularly in achieving profitability and increasing shareholder value [1][2][7]. Company Overview - Phathom Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases, specifically through its product VOQUEZNA, a potassium-competitive acid blocker [5]. Leadership Appointment - Sanjeev Narula brings extensive experience from his previous roles, including Chief Financial Officer at Intra-Cellular Therapies, where he played a significant role in its $14.6 billion acquisition by Johnson & Johnson [3]. - Narula has held senior finance positions at Pfizer, Viatris, and Upjohn, contributing to his expertise in capital strategy, M&A, and financial planning [4]. Product Information - VOQUEZNA is marketed in the U.S. for various gastrointestinal conditions, including heartburn associated with Non-Erosive GERD and as part of treatment for H. pylori infection [5].

Summary of Phathom Pharmaceuticals (PHAT) Conference Call Company Overview - Phathom Pharmaceuticals focuses on a single product, VOQUEZNA, which is a next-generation treatment for gastroesophageal reflux disease (GERD) [3][4] - VOQUEZNA is positioned as a best-in-class treatment, improving upon traditional proton pump inhibitors (PPIs) that have been in use for over 30 years [3][4] Market Opportunity - Approximately 30-40% of GERD patients on PPIs continue to experience pain, representing a significant market opportunity for VOQUEZNA [3][4][57] - The GERD market is substantial, historically exceeding $10 billion, with potential for VOQUEZNA to capture a portion of the market by targeting patients who do not respond to PPIs [55][57] Sales Strategy - The previous sales strategy focused on both primary care physicians and gastroenterologists, with over 60% of salesforce time allocated to primary care [8][10] - The new strategy reallocates salesforce efforts predominantly to gastroenterologists, where the majority of patients in need of VOQUEZNA are located [6][10] - Gastroenterologists are more productive in prescribing VOQUEZNA, yielding four times the productivity compared to primary care calls [10][27] Adoption and Prescribing Patterns - Physicians are categorized based on their prescribing frequency, with a focus on converting those who write few scripts to more frequent prescribers [21][27] - The salesforce is actively working to increase the number of gastroenterologists who adopt VOQUEZNA, aiming to grow the number of consistent writers [27][28] - Positive patient feedback is crucial for driving adoption, as patients report significant improvements in their symptoms when using VOQUEZNA [57][58] Marketing and DTC Campaigns - The direct-to-consumer (DTC) campaign was initially aligned with the broader PPI market strategy but was deemed premature as it directed patients to primary care physicians who were not yet prescribing VOQUEZNA [19][20] - The focus is now on educating gastroenterologists about the benefits of VOQUEZNA and facilitating the prescription process [34][41] Regulatory and Financial Outlook - The company has secured an extended exclusivity period for VOQUEZNA until May 2032, providing a competitive advantage against generics [48][49] - The goal is to achieve profitability and positive cash flow, with expectations of reaching EBIT positive operations by next year [49][50] Future Growth and Pipeline - Phathom Pharmaceuticals is considering in-licensing additional products to build a stable GI business in the future, but the immediate focus remains on driving revenue from VOQUEZNA [45][46] Conclusion - The path to significant revenue growth is clear, with a target of engaging 10,000 gastroenterologists to prescribe VOQUEZNA regularly, leveraging positive patient experiences to drive adoption [58]

Business Performance - Filled VOQUEZNA prescriptions have exceeded 580,000 since launch, compared to over 390,000 as of April 18, 2025[9] - Quarterly filled prescriptions reached approximately 173,000 in Q2 2025, a roughly 36% increase from the previous quarter[10] - Cumulative writers have surpassed 29,300 as of July 18, 2025, up from over 23,600 as of April 11, 2025[13] - Gastrointestinal (GI) specialists account for 70% of the launch-to-date volume, while Primary Care Physicians (PCP) and other non-GI specialties make up 30%[17] - The company is increasing calls on approximately 37,000 Healthcare Professionals (HCPs), focusing on nearly all GIs, all existing writers, and high decile PCPs in Q3 2025[18] Financial Results and Guidance - The company had $1496 million in cash and cash equivalents as of June 30, 2025[28] - The company anticipates reaching profitability in 2026[28] - Net revenue for FY 2025 is projected to be between $165 million and $175 million[22] - Non-GAAP operating expenses are forecasted to be less than $60 million for Q3 2025 and less than $55 million for Q4 2025[22] - Quarterly net revenue increased from $73 million in Q2 2024 to $395 million in Q2 2025[31]

Core Insights - Phathom Pharmaceuticals reported significant revenue growth in Q2 2025, with net revenues of $39.5 million, up from $7.3 million in Q2 2024, driven by the commercial success of VOQUEZNA products [5][6][11] - The company aims to achieve profitability by 2026, supported by a refined commercial strategy focusing on high-value prescribers and strong prescription trends [2][6][11] Business Highlights - Over 580,000 VOQUEZNA prescriptions have been filled to date, reflecting a 49% increase since the last earnings report [6][7] - Approximately 173,000 VOQUEZNA prescriptions were filled in Q2 2025, representing a 36% sequential growth from Q1 2025 [7] - The prescriber base has expanded, with over 29,300 unique healthcare providers writing prescriptions, a 24% increase since the last quarterly update [7] Financial Performance - R&D expenses for Q2 2025 were $9.1 million, an increase from $7.4 million in Q2 2024, primarily due to one-time restructuring charges [11] - SG&A expenses rose to $85.3 million in Q2 2025 from $75.9 million in Q2 2024, driven by higher personnel-related costs [11] - The net loss for Q2 2025 was $75.8 million, compared to $91.4 million in Q2 2024, with a non-GAAP adjusted net loss of $56.5 million [11][19] Market Position and Strategy - The FDA granted 10-year New Chemical Entity exclusivity for VOQUEZNA, extending market protection until May 2032, which is expected to delay generic competition until at least 2033 [7] - The company has shifted its sales strategy to prioritize gastroenterologists over primary care physicians to enhance prescriber engagement [7] Future Outlook - Phathom expects full-year 2025 revenue to be between $165 million and $175 million, based on strong prescription trends and a refined commercial strategy [6][11] - The company anticipates non-GAAP operating expenses to decrease to less than $60 million in Q3 2025 and less than $55 million in Q4 2025 [11]

Core Insights - Phathom Pharmaceuticals has appointed Anne Marie Cook as Chief Legal Officer and Corporate Secretary, bringing extensive legal expertise in the pharmaceutical industry [1][2][3] Company Overview - Phathom Pharmaceuticals focuses on developing and commercializing novel treatments for gastrointestinal diseases [6] - The company has in-licensed exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB), marketed in the U.S. as VOQUEZNA for various gastrointestinal conditions [6] Leadership Background - Anne Marie Cook has a strong background in pharmaceutical law, having served as Senior Vice President and General Counsel at Sage Therapeutics, and held legal leadership roles at Aegerion, ViaCell, and Biogen [2][4] - Cook's experience includes overseeing legal activities related to commercialization, regulatory compliance, intellectual property, and corporate governance [4] Strategic Vision - The CEO of Phathom, Steven Basta, expressed confidence that Cook's skills will significantly impact the company's growth and corporate strategy [3] - Cook emphasized her commitment to helping Phathom redefine the standard of care in acid-related gastrointestinal diseases and create value for stakeholders [3][4]