Phathom Pharmaceuticals Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Annabel Samimy - Stifel Financial Corp - Analyst : Hi, thanks for taking my questions. And just really going on a couple of things, just while we are talking about the CP, to be clear, are you speaking to the same individuals at the FDA that you were speaking to previously? So, that's the first question. Then on the strategic reductions, just drilling down here and specifically on the decision to cut DTC, we all know it's a pretty promotion-sensitive market. So, I understand you are pulling back digitally, but I guess it was also an effort to potentially expand from the 50,000 target audience to 100,000 target audience. So, should we take this as a signal that you are on enough of a trajectory with sufficient awareness that it's kind of on a flywheel and it can sort of build itself? How are you going to, I guess target this next batch of physicians or are you pulling back on that target audience? Thanks.

Question: Annabel Samimy - Stifel Financial Corp - Analyst : Got it. Thank you.

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : Good morning. Thanks for taking the questions. Maybe for Steve, just on how should investors be thinking about the potential impact on overall scripts, script growth, from the discontinuation of a lot of the DTC TV spend here? I mean do you have a good survey data to determine kind of what portion of scripts are coming, being driven from there? You kind of just mentioned it. I know that can be difficult to determine, but just I guess how should we be thinking about that? And along those same lines, management had previously noted comfortability around $165 million net revenue consensus at the time in 2025. Can you just give us a sense overall for kind of what your model says for 2025 as it relates to how we should be maybe moderating or changing our expectations?

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : And I am fully noting that it's Jonathan's first day. But no plans on any sort of sales force reduction, sales force size will remain the same. And then second point on that, any change in focus from a standpoint of primary care versus specialist GI?

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : Got it. And then just last confirmation question. Just to confirm, you plan to be cash flow from operations breakeven on a full year basis in 2026 or in a quarter within 2026? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 12:00PM, PHAT.OQ - Q1 2025 Phathom Pharmaceuticals Inc Earnings Call

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : Thank you.

Question: Yatin Suneja - Guggenheim Securities LLC - Analyst : Hey guys, good morning. Thank you for taking my question. I mean just a question particularly on what you are seeing in the market dynamics currently. Like if you look at the script for the last, let's say, four weeks or five weeks, it seems to be relatively flat. So, anything particular that is happening where you are not seeing a growth in Q2, which generally happens even for seasonal products. So, that's one. If you could also comment on where you are on gross to net and how any changes to gross to net we should anticipate for the better half of 2025. Thank you.

Question: Yatin Suneja - Guggenheim Securities LLC - Analyst : Thank you.

Question: Paul Choi - Goldman Sachs & Co LLC - Analyst : Hi, thank you. Good morning everyone and thanks for taking our questions. I have a few. First, for Steve, can you maybe just comment on how many of these changes, like, for instance, the pullback in DTC had been considered prior to you taking the CEO seat, just maybe some color on that would be helpful. Second, just can you maybe comment on your level of conviction that the CP response will be on time in the June timeframe that you mentioned here, just given that we are starting to see FDA miss PDUFA deadlines and other delayed regulatory actions that should statutorily be on time? And third, can you comment, given the expense pullback, are there still plans to continue the pediatric studies, given how important they are for the sort of IP and exclusivity management for request out here? Thank you very much.

Question: Paul Choi - Goldman Sachs & Co LLC - Analyst : Got it. Thank you very much.

Question: Chengxiang Liu - Evercore Group LLC - Analyst : Hey, good morning. This is Chengxiang on for Umer. Thanks for taking our questions. I guess my first question is regarding manufacturing. I think you commented there will be a very limited impact. But for VOQUEZNA tablets, can you confirm are both API and finished products are manufactured in the US? And second question, I think [Sebela] just announced their top-line data. There is probably still some time before their potential launch of the product, but just from your perspective, what the competitive landscape will look like and what might be the factors that could differentiate VOQUEZNA from Sebela? Thank you.

Question: Chengxiang Liu - Evercore Group LLC - Analyst : Thank you so much.