Phathom Pharmaceuticals (PHAT) Q4 2024 earnings summary

Executive summary

• Over 300,000 VOQUEZNA prescriptions filled since launch, with strong Q4 growth driven by non-erosive GERD approval and broad commercial access exceeding 120 million covered lives and 80%+ U.S. commercial coverage.

• Primary care prescribers now surpass GI prescribers, reflecting growing adoption post non-erosive GERD approval.

• Direct-to-consumer campaigns, including a major consumer push and new TV campaign planned for Q2 2025, have driven brand awareness and patient engagement.

• Development pipeline includes a phase 2 EoE trial set to begin enrollment in Q2 2025, an orally disintegrating tablet (ODT) formulation, and ongoing life cycle extension strategies.

• Pursuing regulatory exclusivity through a citizen petition, with FDA response expected by June 2025, and maintaining strong patent protection.

Financial highlights

• Q4 2024 net revenues reached $29.7 million, up 81% sequentially from Q3; full year 2024 net revenues were $55.3 million, up from $0.7 million in 2023.

• Gross profit for Q4 was $25.8 million (87% margin); full year gross profit was $47.3 million (86% margin).

• Q4 GAAP net loss was $74.5 million ($1.05 per share); non-GAAP adjusted net loss was $56.4 million ($0.79 per share).

• Full year 2024 adjusted net loss was $262.3 million; full year GAAP net loss was $334.3 million.

• Ended 2024 with $297.3 million in cash and equivalents, with access to an additional $100 million from a debt facility, subject to revenue milestones.

Outlook and guidance

• 2025 non-GAAP operating expenses projected at $360–$390 million, with R&D at ~10% and SG&A at ~90% of spend.

• Gross-to-net discount rate guidance for 2025 narrowed to 55–65%.

• Full-year 2025 revenue guidance aligns with consensus of approximately $165 million; Q1 expected to be seasonally soft due to industry dynamics and elevated year-end inventory.

• Increased DTC investment planned for H1 2025, with mid-year ROI review to inform future spend.

• Management expects current cash, projected revenues, and available term loan to be sufficient to achieve cash flow positivity.