Phathom Pharmaceuticals Announces Q3 2024 Financial Results and Business Updates

Phathom Pharmaceuticals, Inc., a biopharmaceutical company specializing in innovative treatments for gastrointestinal (GI) diseases, reported its financial results for the third quarter of 2024, revealing significant progress and substantial growth. The company announced net revenues of $16.4 million for the third quarter of 2024, a notable increase from $7.3 million in the previous quarter, reflecting over a 120% sequential quarterly rise.

Phathom's President and CEO, Terrie Curran, expressed excitement over the company's progress, especially the strong commercial momentum of VOQUEZNA, their novel treatment for gastroesophageal reflux disease (GERD). Curran highlighted robust demand from both physicians and patients, as well as expanding payer coverage that now includes over 80% of U.S. commercial lives, translating to an estimated 120 million covered individuals. She emphasized that these trends validate the company’s launch strategies and underscore the potential for VOQUEZNA to replace standard proton pump inhibitors (PPIs).

During the third quarter, the company saw over 143,000 prescriptions filled for VOQUEZNA products, marking a 138% increase since the last quarterly report. The number of filled prescriptions nearly doubled in the third quarter, with over 69,000 filled compared to approximately 35,000 in the second quarter. Furthermore, the prescriber base for VOQUEZNA expanded significantly, with over 13,600 prescribers as of mid-October 2024, an increase of over 65% from the previous quarter.

Phathom has made significant strides in securing broad commercial coverage for VOQUEZNA, now covering an estimated 120 million lives, or over 80% of U.S. commercial lives. The label expansion of VOQUEZNA in July 2024 to include Non-Erosive GERD has significantly broadened its market potential, with strong demand underscoring the unmet need in GERD treatment.

The company also presented new data at the American College of Gastroenterology (ACG) 2024 Annual Meeting. One key presentation focused on a Phase 2 trial assessing the efficacy of As Needed VOQUEZNA dosing for episodic heartburn relief in Non-Erosive GERD patients. This study, which received the ACG Outstanding Research Award, demonstrated symptom improvement within one hour and sustained low heartburn burden with As Needed treatment after initial daily use. Another presentation, recognized with the ACG Presidential Poster Award, explored the significant relief VOQUEZNA provided for nocturnal symptoms in Non-Erosive GERD patients.

Phathom is preparing to initiate a Phase 3 program to validate As Needed dosing of VOQUEZNA for active heartburn episodes, building on positive results from their prior Phase 2 study. Additionally, the company is in the final stages of obtaining FDA feedback on its Phase 2 study for VOQUEZNA as a potential treatment for Eosinophilic Esophagitis (EoE) in adults and adolescents, with plans to launch this program in the first half of 2025.

Financially, Phathom reported a decrease in research and development expenses to $8.7 million in the third quarter of 2024 from $12.3 million the previous year, owing to reduced clinical trial activities. However, selling, general, and administrative expenses rose to $76.1 million from $23.4 million, driven by higher personnel costs and increased marketing efforts for the VOQUEZNA launch. Consequently, the company's net loss for the third quarter of 2024 was $85.6 million, up from $43.2 million the previous year.

As of September 30, 2024, Phathom had cash and cash equivalents totaling $334.7 million, with an additional $125 million available under its term loan with Hercules. The company believes these resources will be sufficient to fund operations and achieve cash flow positivity, given its current cash resources, operating plan, and estimated product revenues.

Phathom Pharmaceuticals remains committed to advancing its portfolio and delivering innovative treatments for GI diseases, with VOQUEZNA at the forefront of its efforts to address significant unmet needs in GERD treatment.