Phathom Pharmaceuticals(PHAT) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported net revenues of $28.5 million for Q1 2025, which is a slight decrease compared to the previous quarter despite an increase in prescriptions filled [27][28] - Cash and cash equivalents stood at $212 million, which is expected to support operations until profitability is reached in 2026 without additional financing [19][32] - The gross to net discount rate improved to 53%, with expectations to range between 55% and 65% for the remainder of 2025 [28][70] Business Line Data and Key Metrics Changes - Approximately 127,000 filled prescriptions for Vaquesna were recorded in Q1 2025, reflecting an 8% growth over Q4 2024 [22] - The proportion of prescriptions filled by repeat patients was about 75%, indicating strong ongoing patient engagement [23] - The company has seen a significant increase in prescribers, with over 23,600 prescribers writing filled prescriptions as of April 11, up from over 20,000 previously [24] Market Data and Key Metrics Changes - The commercial coverage remains consistent, with over 120 million lives covered, representing more than 80% of the total commercially insured market [25] - A new cash pay consignment program was rolled out to improve access for government patients whose insurance does not cover Vaquesna [25] Company Strategy and Development Direction - The company aims to grow Vaquesna sales while managing costs to achieve profitable operations by 2026, reflecting a shift in strategy due to current capital market conditions [10][11] - Cost-saving initiatives are being implemented, targeting operating expenses to be less than $55 million per quarter by Q4 2025 [11][29] - The focus will remain on field sales activities as the primary driver for new prescriber adoption, with a reduction in direct-to-consumer (DTC) spending due to lower ROI [44][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of Vaquesna and the importance of the upcoming FDA decision on the citizens petition for regulatory exclusivity [16][18] - The company is committed to being good stewards of investor funds and aims to reward investor confidence through disciplined spending and revenue growth [33] Other Important Information - The company announced a reduction in force of approximately 6% as part of its cost-saving measures [13] - There is a potential future disruption in the supply of Baquesna triple packs, but it is not expected to materially impact revenues or operations [20] Q&A Session Summary Question: Timing of C-suite changes and impact on CP process - Management confirmed that there will be no interruption in the citizens petition activities, and the team will continue to engage with the FDA [36] Question: Conversations with FDA and potential scenarios - Management indicated that they are in ongoing discussions with the FDA and will take necessary actions based on the response received [39] Question: Impact of DTC pullback on script growth - Management clarified that the focus will remain on field sales activities, which have proven to be effective in driving revenue growth, and they do not expect a negative impact from the DTC pullback [52] Question: Conviction on CP timing - Management expressed cautious optimism about the CP decision being on time but acknowledged the potential for delays due to FDA turnover [80] Question: Plans for pediatric studies - The EOE study has been deferred pending the CP decision, but management remains open to exploring other paths for pediatric exclusivity extensions [82]