Phathom Pharmaceuticals, Inc. Q3 FY2024 earnings call

• Successful commercial launch of VOQUEZNA with growing interest from physicians and payers, and increased coverage from payers.
• Secured FDA approval for VOQUEZNA as a treatment for non-Erosive GERD, expanding the addressable market to roughly 22 million U.S. adults.
• Commercial access for VOQUEZNA surpassed 80% of lives covered, with over an estimated 120 million commercially insured lives having access.
• Over 143,000 prescriptions filled by patients since launch, with ~69,000 in the third quarter. The number of physicians writing filled scripts increased to over 13,600 as of October 18.
• DTC campaign expanded to include non-Erosive GERD messaging, with positive patient sentiment. Pipeline progress includes reviewing real-world non-Erosive GERD data and finalizing a Phase 2 program for Eosinophilic Esophagitis to be initiated in the first half of 2025.

In the third quarter of 2024, Phathom Pharmaceuticals reported net revenues of $16.4 million. VOQUEZNA had over 143,000 prescriptions filled by patients since launch, with approximately 69,000 filled in the third quarter specifically. Gross profit was $14 million, resulting in a gross margin of 86%. Cash and cash equivalents stood at $335 million as of September 30, 2024. The revenue contribution of VOQUEZNA was significant, driven by its growing commercial access and prescription volumes.

• No financial guidance provided for 2024 yet, but the company is monitoring trends.
• Anticipates increased investments in commercial activities for the remainder of 2024 and into 2025 based on early results from the DTC campaign.
• Confident in VOQUEZNA's market opportunity and focused on capital allocation to ensure strong return on investments in commercial, DTC, and R&D activities.

• Forward-looking statements involve risks and uncertainties beyond Phathom's control, with actual results potentially differing materially from forward-looking statements.
• Risks related to market acceptance of VOQUEZNA, regulatory approvals, and competitive landscape that could materially adversely affect the business, results of operations, and trading prices of Phathom's common stock.

Q: Annabel Samimy asked about coverage uptake, prescriptions, and the as needed trial.

A: Martin Gilligan responded on coverage uptake and prescription growth, stating it's a mix of access and demand tied to non-Erosive GERD launch. Terrie Curran discussed the as needed trial, mentioning evaluating real-world utilization data before proceeding.

Q: Paul Choi asked about gross to net and the GAIN application.

A: Molly Henderson commented on gross to net being within the expected range and Terrie Curran provided an update on the Orange Book discussions regarding VOQUEZNA's exclusivity.

Q: Joseph Stringer asked about refill rates.

A: Martin Gilligan stated they're seeing healthy refill rates consistent with PPI prescriptions, with new writers increasing and persistency tracking well.

Q: Yatin Suneja asked about duration of therapy, gross to net, and guidance.

A: Martin Gilligan talked about persistency tracking consistent with PPI and gross to net staying within expected range. Molly Henderson mentioned continuing to monitor trends for guidance.

Q: Chase Knickerbocker asked about primary care progress and sales rep metrics.

A: Martin Gilligan noted growth in primary care prescribers, with new writers in primary care overtaking gastroenterologists, and sales reps tracking awareness and prescribing metrics.

Q: Unidentified Analyst asked about fill rate, 10mg volume, and QIDP exclusivity.

A: Martin Gilligan said fill rate is no longer a key reported metric, 10mg volume is tied to non-Erosive GERD launch, and Terrie Curran confirmed QIDP ties to the molecule don't provide additional exclusivity.

Q: Matthew Caufield asked about H. pylori prescriber engagement.

A: Martin Gilligan stated H. pylori is a part of the business, with its benefits tied to VOQUEZNA's mechanism and potentially leading to GERD prescriptions for patients.