Phathom Pharmaceuticals(PHAT) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2023, the company reported net revenues of $682,000, reflecting initial stocking of wholesalers in December, with VOQUEZNA becoming commercially available on November 28 [11][24] - Gross profit for Q4 2023 was $515,000, resulting in a gross margin of approximately 76% [11] - GAAP net loss for Q4 2023 was $79.6 million, or $1.39 loss per share, compared to a loss of $55 million, or $1.33 loss per share in Q4 2022 [12] - Non-GAAP adjusted net loss for Q4 2023 was $46 million, or $0.80 loss per share, compared to $42.2 million, or $1.02 loss per share in the same period of 2022 [12] - As of December 31, 2023, cash and cash equivalents were $381 million, including $175 million received from a revenue interest financing agreement [12][41] Business Line Data and Key Metrics Changes - The company reported over 3,800 filled prescriptions for VOQUEZNA as of February 23, 2024, with an estimated total of 14,000 prescriptions written since launch [8][18] - The sales force's efforts have resulted in over 1,200 unique prescribers writing VOQUEZNA scripts, with repeat prescribing observed [8][10] Market Data and Key Metrics Changes - VOQUEZNA's total commercial coverage now reflects an estimated 60 million commercially covered lives, following its addition to Express Scripts' national formularies [22][51] - The company anticipates that the gap between total demand and filled scripts will narrow significantly as payer access improves [6][9] Company Strategy and Development Direction - The company aims to become the number one prescribed acid suppressant in the U.S. and is focused on expanding market access and driving demand for VOQUEZNA [7][34] - The FDA has accepted the NDA for non-erosive GERD daily dosing, with a target action date of July 19, 2024, which could significantly broaden VOQUEZNA's addressable population [6][34] - A new branded consumer campaign targeting Erosive GERD patients is set to launch, including TV commercials on popular streaming services [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for VOQUEZNA, citing positive feedback from physicians and patients [5][34] - The company believes that the successful launch and ongoing negotiations with payers will lead to increased filled prescriptions throughout 2024 [55][56] - Management highlighted the potential for VOQUEZNA to achieve annual peak revenues exceeding $3 billion, supported by a significant addressable market and unmet patient needs [34] Other Important Information - The company reported non-GAAP R&D expenses of $6.1 million for Q4 2023, down from $14.3 million in Q4 2022, while SG&A expenses increased to $39.7 million from $25.7 million in the same period [40][58] - The company has access to a total of $160 million via its debt facility, providing a solid financial position to support its launch and development strategies [41] Q&A Session Summary Question: What is the company's comfort level with the consensus revenue estimates? - Management indicated that they expect normalized gross-to-net (GTN) dynamics to be between 50% and 65% [15][16] Question: Can you discuss the reasons for prescriptions not being filled? - Management noted that early on, some prescriptions were sent to long-established retail pharmacies, leading to a portion of VOQUEZNA prescriptions not being filled [54] Question: How does the company view the uptake of VOQUEZNA across different regions? - Management reported that they are seeing similar upticks in demand across the U.S., with positive feedback from physicians [69] Question: What is the expected trend for the split between BlinkRx and retail prescriptions? - Management expects the utilization of BlinkRx to grow over time, with a shift towards retail as more payer access is secured [88][91] Question: How is the company planning to approach the Eosinophilic Esophagitis Phase II trial? - The company intends to target a first-line treatment population, focusing on broader segments in the Phase II study [92]