Phathom Pharmaceuticals (NasdaqGS:PHAT) FY Conference Transcript

Summary of Phathom Pharmaceuticals FY Conference Call Company Overview - Company: Phathom Pharmaceuticals - Product: VOQUEZNA, a treatment for erosive and non-erosive GERD patients - Conference Date: September 08, 2025 Key Points Financial Performance - Revenue Growth: - Achieved $55 million in revenue last year - Projected revenue for the current year is between $165 million and $175 million, indicating significant growth [6][89] - Quarterly Performance: - Reported a $39 million quarter in Q2, reflecting strong uptake among physicians [6] - 36% sequential prescription growth over Q1, with approximately 173,000 VOQUEZNA prescriptions filled [30] Product Differentiation - Mechanism of Action: - VOQUEZNA is a potassium-competitive acid blocker (PCAB) with advantages over traditional proton pump inhibitors (PPIs) [7] - Demonstrates rapid onset of action, with patients feeling relief within 30 to 45 minutes [7] - Elevates gastric pH to levels higher than PPIs, providing better symptom relief [8] - Clinical Efficacy: - Higher healing rates for erosive esophagitis compared to PPIs, as evidenced by clinical trials [10] Strategic Focus - Target Market Shift: - Transitioning focus from primary care physicians to gastroenterologists, who are more likely to prescribe VOQUEZNA [13][15] - Anticipated growth in adoption as gastroenterologists treat patients with severe GERD symptoms [15] - Direct-to-Consumer Campaign: - Initial DTC campaign was premature; future campaigns will be more effective once primary care physicians are familiar with VOQUEZNA [21] Market Dynamics - Patient Journey: - Patients typically start treatment with primary care physicians and may be referred to gastroenterologists if symptoms persist [25] - Approximately 30% to 40% of GERD patients on chronic PPI therapy still experience breakthrough symptoms, indicating a significant market for VOQUEZNA [40] Challenges and Opportunities - Adoption Hurdles: - Physician inertia and long-standing habits of prescribing PPIs pose challenges to VOQUEZNA adoption [44][53] - Overcoming these hurdles requires positive patient feedback and increased physician familiarity with VOQUEZNA [51] - Label Expansion: - Planned phase two trial for VOQUEZNA in eosinophilic esophagitis (EOE) could open new revenue streams [73] - EOE market represents tens of millions in potential revenue, with a significant number of PPI scripts annually [82] Regulatory and Exclusivity Insights - Exclusivity Protection: - FDA confirmed a May 2032 date for exclusivity protection, with potential for a six-month extension if phase two studies are successful [85][86] Future Outlook - Path to Profitability: - Expected to achieve EBIT positive status in 2026, with revenue projections exceeding $165 million for the current year [89][93] - Operational Efficiency: - Plans to reduce operating expenses below $60 million in Q3 and below $55 million in Q4 [91] Additional Insights - Prescription Channels: - Approximately 68% of prescriptions filled through retail pharmacies, with efforts to optimize both retail and cash pay channels [56][70] - Patient-Centric Approach: - Focus on improving patient outcomes and ensuring access to VOQUEZNA through effective prescription practices [72]