Phathom Pharmaceuticals, Inc. Q4 FY2025 earnings call

• Successful Q4 with revenue and cash operating expenses at the better end of guided ranges. - Took steps to enhance the capital structure, reduce interest expense, and modify term loan obligations. - 2025 was a transformational year, and the company is set for growth and profitability. - The sales organization is positioned to deliver, and the GI strategy is showing signs of working. - Over 1.1 million VOQUEZNA total prescriptions had been filled to more than 230,000 patients by February 13, 2025. - Completed the national sales meeting, and the sales force is nearly full strength

For 2025, net revenues were $175.1 million, representing 217% year - over - year growth. Q4 revenue was $57.6 million. Cash operating expenses, excluding stock - based compensation, were $50.3 million for Q4 and approximately $284 million for the full year. Gross margin remained consistent at approximately 87% in Q4 and full year. For 2026, revenue guidance is $320 million to $345 million, with gross to net expected to be between 55% - 59%, gross margin approximately 80%, and cash operating expenses, excluding stock - based compensation, expected to be $235 million to $255 million

• 2026 revenue guidance is $320 million to $345 million including an accounting - related classification change. - Gross to net is expected to be between 55% - 59%, and gross margin is approximately 80%. - Cash operating expenses, excluding stock - based compensation, are expected to be $235 million to $255 million. - Anticipate operational profitability excluding stock - based compensation by Q3 2026 and for the full year 2026. - Expect cash flow positivity in 2027

Q: Congrats on the strong end of the year and the work done on interest. What early signals are you seeing from the strengthened sales force and strategy?

A: Seeing consistent momentum. There's broad penetration in the gastroenterology community, with physicians moving up the adoption ladder and an increasing adoption rate.

Q: Following up, any sense of patients transitioning back to primary care and inflection expectations?

A: Seeing a broad uplift in primary care prescribing volume. The near - term focus is on the core gastroenterology conversion, and steady growth is expected.

Q: On Q1, sequential growth and Medicare coverage for VOQUEZNA?

A: Acknowledge Q1 seasonality, no quarterly guidance is given. Medicare prescriptions are increasing through appeals or Part D plans, but there's no broad coverage change.

Q: Seasonality effect and nuances with the refocused effort?

A: Similar to the pattern of last year. IQVIA reported numbers may have extra softness, but the seasonality effect is real.

Q: Proportions of prescriptions through BlinkRx and GoodRx?

A: More than half of prescriptions go through Blink. The GoodRx option is small, just turned on in November.

Q: Inning of the sales force to full productivity and productivity since the GI focus?

A: The sales force is in the 7th or 8th inning of full productivity. The incremental effectiveness is cumulative over time.

Q: Long - term vision beyond VOQUEZNA?

A: Actively pursuing EoE for VOQUEZNA, evaluating other indications, and planning to build a GI company with additional assets.

Q: Q1 cash pay patients and gross to net trends?

A: Expect some uptick in cash pay patients. GTN in 2025 was within the 55% - 60% range, and 2026 guidance is 55% - 59% overall with a steady trend.

Q: Thoughts on prospective entrants in the P - CAB space?

A: Entry of a second product in the P - CAB space has a net positive effect, broadening category awareness and benefiting the lead product