Phathom Pharmaceuticals, Inc. ((PHAT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Phathom Pharmaceuticals’ recent earnings call exuded a positive sentiment, underscored by robust growth in prescriptions and revenue, a strong financial standing, and effective cost-saving strategies. Despite these achievements, the company faces challenges such as potential supply disruptions and strategic shifts in sales focus.
Significant Growth in VOQUEZNA Prescriptions
Phathom Pharmaceuticals reported a substantial increase in VOQUEZNA prescriptions, with over 580,000 filled and a 49% growth over 14 weeks. In the second quarter alone, 173,000 prescriptions were filled, marking a 36% growth over the first quarter. This growth highlights the strong demand and successful market penetration of VOQUEZNA.
Positive Financial Performance
The company showcased a positive financial trajectory, reporting $39.5 million in revenue for the second quarter, representing a 39% increase over the first quarter. Additionally, Phathom achieved a $12 million reduction in non-GAAP operating expenses compared to the previous quarter, reflecting effective cost management.
Improved Cash Position and Guidance
Phathom ended the quarter with approximately $150 million in cash, providing a solid financial foundation. The company also offered revenue guidance of $165 million to $175 million for the full year 2025, surpassing analyst expectations and demonstrating confidence in continued growth.
Exclusivity Achieved for VOQUEZNA
The FDA updated the Orange Book to reflect exclusivity for VOQUEZNA tablets through May 2032, with potential extension into 2033. This exclusivity strengthens Phathom’s market position and provides a competitive edge in the pharmaceutical landscape.
Cost-Saving Initiatives
Phathom implemented cost-saving initiatives, resulting in a $12 million reduction in non-GAAP operating expenses in the second quarter compared to the first. Further reductions are projected, showcasing the company’s commitment to maintaining financial discipline.
Potential Supply Disruption
The company faces potential supply disruptions in the VOQUEZNA triple pack due to issues with clarithromycin tablets. However, no disruptions have occurred yet, and Phathom is actively managing the situation to mitigate any impact.
Focus Shift and Sales Target Changes
Phathom is shifting its sales focus from primary care physicians to gastroenterologists, dropping over 20,000 primary care physician targets. This strategic shift may impact new writer conversions but aligns with the company’s long-term goals.
Forward-Looking Guidance
Phathom Pharmaceuticals provided optimistic forward-looking guidance during the earnings call. The company highlighted a 49% growth in VOQUEZNA prescriptions over 14 weeks and strong commercial access with over 80% of lives covered. Revenue for the second quarter reached $39.5 million, a 39% increase over the first quarter. With a full-year 2025 revenue guidance of $165 million to $175 million, Phathom is on track to achieve profitability by 2026, supported by ongoing revenue growth and disciplined cost management.
In summary, Phathom Pharmaceuticals’ earnings call reflected a positive outlook, driven by significant growth in VOQUEZNA prescriptions, strong financial performance, and strategic cost-saving measures. While challenges such as potential supply disruptions and shifts in sales focus exist, the company’s forward-looking guidance and market exclusivity position it well for continued success.