Full Press Release Details
Phathom Pharmaceuticals Reports Fourth Quarter and Full Year 2024 Financial Results and Provides Business Update
FLORHAM PARK, N.J., March 6, 2025 Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical
company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases, today reported financial results for the fourth quarter and full year ended December 31, 2024, and provided recent business updates.
VOQUEZNA s first full year on the market has been exceptional, with impressive commercial execution, increasing brand recognition, and growing
demand, said Terrie Curran, President and CEO of Phathom. Our momentum continues to accelerate, driven by broad, high-quality commercial access, consistent refills, and a growing base of new prescribers across both gastroenterology and
primary care. Additionally, our VOQUEZNA Can Kick Some Acid direct-to-consumer campaign is delivering positive early results, fueling patient engagement and
driving prescription requests an area we are continuing to expand in 2025. With total filled prescriptions rising and positive brand experiences reinforcing VOQUEZNA s differentiated value, we believe we are on the path to blockbuster
success and remain confident that the strong foundation we have built will propel sustained growth.
Recent Business Updates and Fourth
Quarter & Full Year 2024 Results:
VOQUEZNA Launch Progress:
Recent Business and Regulatory Updates:
Fourth Quarter and Full Year 2024 Financial Results:
Conference Call and Webcast
conference call and webcast to discuss its fourth quarter and full year 2024 financial results and business highlights today, March 6, 2025, at 8:30 a.m. ET. A live webcast will be available on the investors page of Phathom s website under
Events & Presentations. A replay of the webcast will be available following the completion of the event and will be archived for up to 90 days.
Non-GAAP Financial Measures
This press release includes financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP), and also
certain non-GAAP financial measures. In particular, Phathom has provided non-GAAP adjusted net loss and adjusted net loss per share, adjusted to exclude the items below.
Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. However, Phathom believes the presentation of non-GAAP
adjusted net loss and adjusted net loss per share, when viewed in conjunction with GAAP results, provides investors with a more meaningful understanding of ongoing operating performance. These measures exclude
(i) non-cash stock-based compensation, which is substantially dependent on changes in the market price of common shares, (ii) interest expense related to the accounting for our revenue interest
financing liability, which are in excess of the actual interest owed, and (iii) interest expense related to the amortization of debt discount on our term loan.
Phathom believes the presentation of these non-GAAP financial measures provides useful information to management and
investors regarding Phathom s results of operations. When GAAP financial measures are viewed in conjunction with these non-GAAP financial measures, investors are provided with a more meaningful
understanding of Phathom s ongoing operating performance and are better able to compare Phathom s performance between periods. In addition, these non-GAAP financial measures are among those
indicators Phathom uses as a basis for evaluating performance, and planning and forecasting future periods. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute
for GAAP financial measures. A reconciliation between these non-GAAP measures and the most directly comparable GAAP measures is provided later in this press release.
About Phathom Pharmaceuticals, Inc.
Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of novel treatments for gastrointestinal diseases. Phathom has in-licensed the exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) that is currently marketed in the United States as VOQUEZNA
(vonoprazan) tablets for the relief of heartburn associated with Non-Erosive GERD in adults, the healing and maintenance of healing of Erosive GERD in adults and relief of associated heartburn, in addition to
VOQUEZNA TRIPLE PAK (vonoprazan tablets, amoxicillin capsules, clarithromycin tablets) and VOQUEZNA DUAL PAK (vonoprazan tablets, amoxicillin capsules) for the treatment of H. pylori infection in adults. For more information about
Phathom, visit the company s website at www.phathompharma.com and follow on LinkedIn and X.
This press release contains forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking
statements, including statements about the timing of commencement of the Phase 2 EoE study; our plans with respect to the value and potential timing for a separate Phase 3 program to validate As Needed dosing of VOQUEZNA for active heartburn
episodes; the ultimate decision by the FDA on the action requested in the CP and the timing of any FDA action regarding the CP; the possible extension of new chemical entity (NCE) exclusivity to VOQUEZNA tablets; the expected duration of patent term
extension for VOQUEZNA; the ability of our direct-to-consumer campaign
to successfully engage patients, the ability of VOQUEZNA to address unmet needs in GERD treatment; the availability of additional funds under our term loan agreement; future growth in demand and
our ability to secure additional commercial coverage for our products; and our ability to achieve cash flow positivity. The inclusion of forward-looking statements should not be regarded as a representation by Phathom that any of its plans will be
achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Phathom s business, including, without limitation: we may not be able to successfully commercialize VOQUEZNA, VOQUEZNA
TRIPLE PAK and VOQUEZNA DUAL PAK, which will depend on a number of factors including coverage and reimbursement levels from governmental authorities and health insurers as well as market acceptance by healthcare providers; we may use our capital
resources sooner than expected, or our operating plan may overestimate our expected product revenues, which could require us to reduce expenses or raise additional capital sooner than expected; the inherent risks of clinical development of
vonoprazan; Phathom s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; regulatory developments in the United States and foreign countries; unexpected adverse side effects or
inadequate efficacy of vonoprazan that may limit its development, regulatory approval and/or commercialization, or may result in recalls or product liability claims; the FDA may reject Phathom s request to correct the Orange Book listings
identifying the expiration date for the NCE exclusivity period on the VOQUEZNA tablets Orange Book listings; the FDA may take longer than Phathom expects to act on its CP, if at all; members of the public may comment on the CP which may influence
the FDA s decision; Phathom s ability to obtain and maintain intellectual property protection, including patent term extensions, and non-patent regulatory exclusivity for vonoprazan; Phathom may face
competition earlier than expected if it loses or fails to obtain any of its patent protection or non-patent regulatory exclusivity for VOQUEZNA tablets; Phathom s estimates regarding patient population
and commercial coverage could prove to be inaccurate; and other risks described in the Company s prior press releases and the Company s filings with the Securities and Exchange Commission (SEC), including under the heading Risk
Factors in the Company s most recent Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof, and Phathom undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this
cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
VOQUEZNA, VOQUEZNA DUAL PAK, VOQUEZNA TRIPLE
PAK, Phathom Pharmaceuticals, and their respective logos are registered trademarks of Phathom Pharmaceuticals, Inc.
Selected Condensed Balance Sheets
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 297,263 | $ | 381,393 | ||||
| Total assets | $ | 378,318 | $ | 413,842 | ||||
| Total liabilities | $ | 631,898 | $ | 486,601 | ||||
| Total stockholders deficit | $ | (253,580 | ) | $ | (72,759 | ) |
Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Product revenue, net | $ | 29,664 | $ | 682 | $ | 55,252 | $ | 682 | ||||||||
| Cost of revenue | 3,815 | 167 | 7,973 | 167 | ||||||||||||
| Gross profit | 25,849 | 515 | 47,279 | 515 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 8,583 | 13,393 | 34,082 | 49,899 | ||||||||||||
| Selling, general and administrative | 76,683 | 56,996 | 290,664 | 117,928 | ||||||||||||
| Total operating expenses | 85,266 | 70,389 | 324,746 | 167,827 | ||||||||||||
| Loss from operations | (59,417 | ) | (69,874 | ) | (277,467 | ) | (167,312 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest income | 3,510 | 3,347 | 15,158 | 7,876 | ||||||||||||
| Interest expense | (18,593 | ) | (13,028 | ) | (72,009 | ) | (41,968 | ) | ||||||||
| Other income (expense), net | 49 | (14 | ) | (8 | ) | (188 | ) | |||||||||
| Total other expense | (15,034 | ) | (9,695 | ) | (56,859 | ) | (34,280 | ) | ||||||||
| Net loss and comprehensive loss | $ | (74,451 | ) | $ | (79,569 | ) | $ | (334,326 | ) | $ | (201,592 | ) | ||||
| Net loss per share, basic and diluted | $ | (1.05 | ) | $ | (1.39 | ) | $ | (5.29 | ) | $ | (3.93 | ) | ||||
| Weighted-average shares of common stock outstanding, basic and diluted | 71,044,948 | 57,294,412 | 63,176,210 | 51,289,092 |
Reconciliation of GAAP to Non-GAAP Financial
(in thousands, except share and per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of GAAP to Non-GAAP adjusted net loss: | ||||||||||||||||
| GAAP net loss | ($ | 74,451 | ) | ($ | 79,569 | ) | ($ | 334,326 | ) | ($ | 201,592 | ) | ||||
| Stock-based compensation expense (A) | 6,687 | 24,583 | 24,047 | 45,025 | ||||||||||||
| Non-cash interest on revenue interest financing liability | 10,759 | 8,462 | 45,771 | 24,727 | ||||||||||||
| Interest expense related to amortization of debt discount | 629 | 566 | 2,192 | 2,127 | ||||||||||||
| Non-GAAP adjusted net loss | ($ | 56,376 | ) | ($ | 45,958 | ) | ($ | 262,316 | ) | ($ | 129,713 | ) | ||||
| Reconciliation of GAAP to Non-GAAP adjusted net loss per share basic and diluted: | ||||||||||||||||
| GAAP net loss per share basic and diluted | ($ | 1.05 | ) | ($ | 1.39 | ) | ($ | 5.29 | ) | ($ | 3.93 | ) | ||||
| Stock-based compensation expense (A) | 0.10 | 0.43 | 0.38 | 0.88 | ||||||||||||
| Non-cash interest on revenue interest financing liability | 0.15 | 0.15 | 0.72 | 0.48 | ||||||||||||
| Interest expense related to amortization of debt discount | 0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
| Non-GAAP net loss per share basic and diluted | ($ | 0.79 | ) | ($ | 0.80 | ) | ($ | 4.15 | ) | ($ | 2.53 | ) | ||||
| Weighted-average shares of common stock outstanding, basic and diluted | 71,044,948 | 57,294,412 | 63,176,210 | 51,289,092 |
(A) Stock-based compensation consists of the following:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Research and development | 1,691 | 7,325 | 5,567 | 12,302 | ||||||||||||
| Selling, general and administrative | 4,996 | 17,258 | 18,480 | 32,723 |