Phathom Pharmaceuticals, Inc. Q1 FY2025 earnings call

• Steve Basta emphasized accelerating VOQUEZNA launch and achieving profitable operations in 2026. - Implemented cost savings initiatives to have operating expenses (excluding interest, stock comp, certain accruals) <$55M per quarter in Q4 2025. - Personnel changes: Azmi, Martin, and Molly to transition out; Robert Breedlove appointed Principal Accounting Officer. - Halting broadcast cable and streaming TV promotion (largest DTC spend categories) while maintaining digital promotion with higher ROI. - Welcomed new SVP of Sales, Jonathan Bentley. - Paused pending Phase 2 eosinophilic esophagitis study. - Focus on Citizens Petition with FDA due to respond in early June; positive response confirms exclusivity to 2032, negative or indeterminate requires next steps.

For the first quarter of 2025, Phathom reported net revenues of $28.5 million. VOQUEZNA has seen significant prescription growth: over 390,000 scripts filled by patients from launch through April 18, with approximately 127,000 filled in the first quarter, a ~8% growth over the fourth quarter. Among these, ~75% were from repeat patients. However, IQVIA will make a retroactive projection adjustment in June affecting data from Jan 10 - April 4, with an estimated 5% impact incorporated in the Q1 metric. Retail and cash pay scripts split ~70% to 30% in Q1. The number of prescribers writing filled scripts increased to over 23,600 as of April 11.

• Target to have operating expenses (excluding interest, stock comp, certain accruals) <$55M per quarter in Q4 2025. - Adjusted 2025 full year non-GAAP operating expense range by $60M - $70M to $290M - $320M. - Aim to achieve profitable operations in 2026 without need for additional debt or equity financing, based on current cash on balance sheet.

• Uncertainty regarding FDA's decision on the Citizens Petition, which is critical to exclusivity runway. - Possible future disruption in supply of VOQUEZNA TRIPLE PAKs, though limited impact expected. - Cost of capital being more dilutive if raising funds at current stock price, leading to need for expense reduction.

Q: Joseph Stringer with Needham & Company asked about timing of C-suite changes, impact on CP process, and scenarios if FDA says need more time.

A: Steve Basta said management changes won't interrupt CP activities; Azmi will retain advisory role. If FDA says need more time, action will depend on conversations with FDA to define next steps.

Q: Annabel Samimy with Stifel asked about CP conversation individuals and strategic reductions on DTC.

A: Steve Basta said no interruption in CP conversations; DTC broadcast spend wasn't providing near-term return, so focusing on field sales which drives revenue.

Q: Chase Knickerbocker with Craig-Hallum asked about impact of DTC discontinuation on scripts and 2025 revenue expectations.

A: Steve Basta said changes won't adversely impact revenue ramp; field sales activity is core driver of revenue, and there's no need to change revenue expectations.

Q: Yatin Suneja with Guggenheim asked about script flatness in Q2 and gross to net.

A: Steve Basta said no concern from week-to-week variability; Molly Henderson said gross to net was 53% in Q1, still expect 55% - 65% average for 2025.

Q: Paul Choi with Goldman Sachs asked about C-suite changes prior to CEO seat, CP timing conviction, and pediatric studies.

A: Steve Basta said changes weren't on table prior; CP timing uncertain due to FDA turnover; paused Phase 2 eosinophilic esophagitis study to reevaluate after CP decision.

Q: Unidentified Analyst with Cantor Fitzgerald asked about non-erosive vs erosive scripts and physician confidence.

A: Steve Basta said physicians love VOQUEZNA; Molly Henderson said it's hard to discern non-erosive vs erosive from claims data but saw strong momentum in script data.

Q: Chengxiang Liu on behalf of Umer Raffat with Evercore asked about manufacturing and competitive landscape with Takeda.

A: Steve Basta said no near-term tariff impact on manufacturing; Takeda's launch may grow the category, with VOQUEZNA having first-to-market advantage.