Full Press Release Details
Phathom Pharmaceuticals Reports Third Quarter 2024 Financial Results and Provides Business Updates
FLORHAM PARK, N.J., November 7, 2024 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 third quarter of 2024, and provided recent business updates.
We are thrilled with Phathom s progress over the past quarter, particularly the strong and continued momentum of the commercial launch for our first-in-class gastroesophageal reflux disease (GERD) treatment, VOQUEZNA, said Terrie Curran, President and CEO of Phathom. Demand from physicians and patients
has been robust, and favorable payer coverage continues to expand, now reaching over an estimated 120 million U.S. commercially covered lives. These positive trends in prescription data, market sentiment, and patient access validate our launch
strategies and reinforce our confidence in the potential of VOQUEZNA to displace standard of care proton pump inhibitors (PPIs). The recent approval for Non-Erosive GERD has greatly expanded our market
opportunity, and the strong demand highlights the high unmet need in GERD treatment. Additionally, our successful $130 million equity raise further strengthens our ability to invest in the growth of the brand and we believe we remain
well-positioned to deliver on VOQUEZNA s blockbuster opportunity.
Recent Business Highlights and Third Quarter 2024 Results:
VOQUEZNA Launch Progress:
Recent Business and Regulatory
Third Quarter 2024 Financial Results:
Conference Call and Webcast
conference call and webcast to discuss its third quarter financial results and business highlights today, November 7, 2024, at 8:30 am 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 treatment 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.
Forward-Looking Statements
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 potential that
VOQUEZNA can displace standard of care PPIs, and 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; Phathom s ability to obtain and maintain intellectual property protection and non-patent
regulatory exclusivity for vonoprazan; 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,
Selected Condensed Balance Sheets
| September 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 334,678 | $ | 381,393 | ||||
| Total assets | $ | 387,044 | $ | 413,842 | ||||
| Total liabilities | $ | 574,156 | $ | 486,601 | ||||
| Total stockholders deficit | $ | (187,112 | ) | $ | (72,759 | ) |
Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Product revenue, net | $ | 16,352 | $ | $ | 25,588 | $ | ||||||||||
| Cost of revenue | 2,356 | 4,158 | ||||||||||||||
| Gross profit | 13,996 | 21,430 | ||||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 8,693 | 12,263 | 25,499 | 36,505 | ||||||||||||
| Selling, general and administrative | 76,099 | 23,396 | 213,981 | 60,932 | ||||||||||||
| Total operating expenses | 84,792 | 35,659 | 239,480 | 97,437 | ||||||||||||
| Loss from operations | (70,796 | ) | (35,659 | ) | (218,050 | ) | (97,437 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 3,711 | 2,720 | 11,648 | 4,528 | ||||||||||||
| Interest expense | (18,484 | ) | (10,107 | ) | (53,416 | ) | (28,939 | ) | ||||||||
| Other expense, net | (8 | ) | (197 | ) | (57 | ) | (174 | ) | ||||||||
| Total other expense | (14,781 | ) | (7,584 | ) | (41,825 | ) | (24,585 | ) | ||||||||
| Net loss and comprehensive loss | $ | (85,577 | ) | $ | (43,243 | ) | $ | (259,875 | ) | $ | (122,022 | ) | ||||
| Net loss per share, basic and diluted | $ | (1.32 | ) | $ | (0.76 | ) | $ | (4.29 | ) | $ | (2.48 | ) |
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of GAAP to Non-GAAP adjusted net loss: | ||||||||||||||||
| GAAP net loss | ($ | 85,577 | ) | ($ | 43,243 | ) | ($ | 259,875 | ) | ($ | 122,022 | ) | ||||
| Stock-based compensation expense (A) | 5,635 | 6,140 | 17,360 | 20,441 | ||||||||||||
| Non-cash interest on revenue interest financing liability | 11,503 | 5,715 | 35,012 | 16,265 | ||||||||||||
| Interest expense related to amortization of debt discount | 589 | 542 | 1,563 | 1,311 | ||||||||||||
| Non-GAAP adjusted net loss | ($ | 67,850 | ) | ($ | 30,846 | ) | ($ | 205,940 | ) | ($ | 84,005 | ) | ||||
| Reconciliation of GAAP to Non-GAAP adjusted net loss per share basic and diluted: | ||||||||||||||||
| GAAP net loss per share basic and diluted | ($ | 1.32 | ) | ($ | 0.76 | ) | ($ | 4.29 | ) | ($ | 2.48 | ) | ||||
| Stock-based compensation expense (A) | 0.08 | 0.11 | 0.28 | 0.41 |
| Non-cash interest on revenue interest financing liability | 0.18 | 0.10 | 0.58 | 0.33 | ||||||||||||
| Interest expense related to amortization of debt discount | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
| Non-GAAP net loss per share basic and diluted | ($ | 1.05 | ) | ($ | 0.54 | ) | ($ | 3.40 | ) | ($ | 1.71 | ) | ||||
| Weighted-average shares of common stock outstanding, basic and diluted | 64,627,847 | 56,782,379 | 60,543,545 | 49,265,321 |
(A) Stock-based compensation consists of the following:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Research and development | 1,296 | 1,397 | 3,876 | 4,977 | ||||||||||||
| Selling, general and administrative | 4,339 | 4,743 | 13,484 | 15,464 |