Phathom Pharmaceuticals (PHAT) Q2 2024 earnings summary

Executive summary

• FDA approval for Voquezna 10 mg tablets in non-erosive GERD in July 2024 expanded the addressable market to the largest GERD segment and enabled immediate commercial promotion.

• Over 122,000 prescriptions written and 60,000 filled for Voquezna since launch, with more than 8,200 cumulative prescribers and rapid sequential growth.

• Commercial coverage now reaches 116 million U.S. lives (77% of commercial lives), with formulary placement at all major PBMs and key payers.

• Strong patient and physician feedback highlights rapid symptom relief and improved quality of life.

• New clinical programs initiated for as-needed dosing in non-erosive GERD and a Phase 2 trial in eosinophilic esophagitis.

Financial highlights

• Q2 2024 net revenues reached $7.3 million, up over 280% sequentially; H1 2024 net revenue totaled $9.2 million.

• Gross profit was $5.9 million for Q2 2024 and $7.4 million for H1 2024, with gross margin around 81%.

• Non-GAAP R&D expenses were $6 million in Q2 2024, down year-over-year; SG&A expenses rose to $75.9 million in Q2 2024, mainly due to commercial launch costs.

• Non-GAAP adjusted net loss was $73.3 million ($1.25 per share) for Q2 2024; net loss for H1 2024 was $174.3 million.

• Cash and equivalents totaled $276.2 million at June 30, 2024, with up to $125 million additional available under term loan.

Outlook and guidance

• Sufficient capital expected to fund operations through end of 2026, assuming continued access to debt facilities and current operating plan.

• Management expects continued operating losses as commercialization and development expand; no specific revenue or earnings guidance provided.

• Anticipate further sequential growth in prescriptions and revenue in H2 2024, driven by expanded access, DTC campaigns, and new indications.

• Planned initiation of Phase 3 trial for as-needed dosing in non-erosive GERD and Phase 2 trial for eosinophilic esophagitis by year-end 2024.