Phathom Pharmaceuticals(PHAT) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net revenues of $29.7 million, representing an 81% sequential increase [54] - Full year 2024 net revenues totaled $55.3 million, with strong revenue growth observed in each quarter [55] - Gross profit for Q4 2024 was $25.8 million, resulting in a gross margin of 87%, an increase of 155 basis points from Q3 [57] - The company reported a GAAP net loss of $74.5 million for Q4 2024, compared to a loss of $79.6 million in Q4 2023 [62] - Cash and cash equivalents as of December 31, 2024, were $297 million, with an additional $100 million available from a debt facility [63] Business Line Data and Key Metrics Changes - VOQUEZNA prescriptions surpassed 300,000, with approximately 118,000 fills in Q4 2024, reflecting over 70% growth compared to Q3 [32][33] - The refill rate for VOQUEZNA in Q4 was about 70%, indicating strong patient retention [35] - The number of physicians writing prescriptions increased to over 20,000, with 75% of them having written more than one prescription [39][40] Market Data and Key Metrics Changes - VOQUEZNA remains covered for over 120 million lives, with commercial coverage above 80% [44] - The company has secured access for the majority of covered lives with a single step through a generic PPI prescription [45] Company Strategy and Development Direction - The company aims to make VOQUEZNA a household name through increased investment in consumer campaigns and targeting primary care physicians [12][41] - Plans to initiate a Phase 2 trial for eosinophilic esophagitis (EoE) are underway, with the belief that VOQUEZNA can serve as a first-line therapy [15][19] - The company is exploring the development of an orally disintegrating tablet (ODT) formulation to enhance patient compliance [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing launch and development goals for VOQUEZNA, anticipating continued momentum in 2025 [10][11] - The company is prepared for potential challenges in Q1 due to typical seasonal slowness but expects growth to resume thereafter [33][65] - Management emphasized the importance of commercial execution and the potential to displace PPIs in the GERD market [70] Other Important Information - The company submitted a Citizen Petition to the FDA for a 10-year exclusivity period for VOQUEZNA products, with a response expected by June 2025 [23][24] - The company is actively monitoring the OTC market opportunity and exploring real-world data related to GERD symptoms among GLP-1 users [22] Q&A Session Summary Question: Timeline for the Citizen Petition and potential outcomes - Management confirmed the FDA is required to respond within 180 days and expressed confidence in their legal position if the decision is unfavorable [76][78] Question: Expectations for Q1 growth - Management indicated that Q1 is expected to be softer than Q4 due to industry dynamics but anticipates growth to resume later in the quarter [79] Question: Phase 3 trial decision timeline - Management expects to have enough data to make a go/no-go decision by midyear [82] Question: Impact of DTC campaigns on prescribing - Management noted a significant increase in physician requests for VOQUEZNA due to DTC campaigns, with a 55% increase in requests reported [88] Question: Early refill trends for NERD - Management indicated that refill rates are tracking well and are in line with expectations for chronic medications [95] Question: Importance of BlinkRx - Management confirmed that BlinkRx remains important for supporting patient access and increasing refill rates [108] Question: ODT formulation and IP strategy - Management clarified that the ODT formulation and pediatric extension will be developed in parallel [114] Question: Resistance from prescribers - Management reported no significant resistance from prescribers, who are welcoming VOQUEZNA's novel mechanism [123]