Phathom Pharmaceuticals(US:PHAT)2025-10-30 13:00Financial 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]