Phathom Pharmaceuticals (PHAT) Q2 2024 earnings summary

Executive summary

• FDA approval of VOQUEZNA 10 mg tablets for Non-Erosive GERD in July 2024 expanded the addressable market to the largest GERD segment, enabling treatment for all GERD and H. pylori patients.

• Over 122,000 prescriptions written and more than 60,000 filled since launch, with 8,200 cumulative prescribers and 77% U.S. commercial coverage.

• Net product revenue reached $9.2 million for the six months ended June 30, 2024, with Q2 2024 net revenues at $7.3 million, up over 280% sequentially.

• Significant momentum in prescriber and patient adoption, supported by strong testimonials and positive real-world feedback.

• Cash and cash equivalents were $276.2 million as of June 30, 2024, with sufficient liquidity projected through 2026.

Financial highlights

• Net loss was $174.3 million for the six months ended June 30, 2024, with Q2 2024 net loss at $91.4 million and non-GAAP adjusted net loss at $73.3 million, or $1.25 per share.

• Gross profit for Q2 2024 was $5.9 million, with an 81% gross margin; gross profit for the six months was $7.4 million and gross margin was 80.5%.

• Non-GAAP R&D spend was $6 million in Q2 2024, down year-over-year and sequentially.

• SG&A expenses rose to $75.9 million in Q2 2024 and $137.9 million for the six months, mainly due to commercial launch costs.

• Interest expense rose to $34.9 million for the six months ended June 30, 2024.

Outlook and guidance

• Sufficient capital expected to fund operations through end of 2026, with up to $125 million additional available under term loan.

• Management expects continued operating losses as commercialization and development efforts expand.

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

• No specific revenue or earnings guidance provided, but management remains confident in significant growth in the back half of 2024.