NASDAQ$PHAT

Phathom Pharmaceuticals Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Phathom reported fourth quarter and full year 2023 financial results and provided a business update.

Phathom Pharmaceuticals reported Q4 2023 financial results, highlighted by the launch of VOQUEZNA and net revenues of $0.7 million from its sales. The company also secured expanded commercial coverage and strengthened its financial position with an expanded term loan facility.

  • Launched VOQUEZNA in November 2023, achieving $0.7 million in net revenues for the fourth quarter.
  • Early physician prescribing indicated strong demand for VOQUEZNA.
  • Secured expanded commercial coverage for VOQUEZNA, growing commercial access to approximately 60 million covered lives.
  • Strengthened financial position with access up to an additional $160 million under expanded term loan facility, extending cash runway through 2026.

Headline financials

Total Revenue

$682K

No prior period
EPS (adj)

-$1.39

Previous: -$1.33-4.5%
Capital Expenditures

$475K

Previous: $412K+15.3%
Net Income

-$79.6M

Previous: -$55M-44.6%
Operating Income

-$69.9M

Previous: -$46.6M-49.8%
Gross Profit

$515K

No prior period
R&D Expense

$13.4M

No prior period
Stock-Based Comp

$24.6M

Previous: $6.66M+269.3%

Revenue & EPS history

Phathom · Revenue · Quarterly

$682K

Q4 2023
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Forward guidance

Phathom is on track to initiate a Phase 3 Non-Erosive GERD trial in 2024 to investigate As Needed dosing of VOQUEZNA for active heartburn episodes, a dosing regimen for which proton pump inhibitors (PPIs) are not approved in the U.S.

Tailwinds

  • Potential approval of VOQUEZNA for Non-Erosive GERD in Q3 is expected to unlock the largest segment of the GERD market.
  • VOQUEZNA national salesforce completed onboarding and were in their territories by early January 2024.
  • Amendment and expansion of its existing loan and security agreement with Hercules Capital, Inc., (Hercules) increasing the total term loan facility to up to $300 million with more favorable terms
  • Company estimates the amended terms will result in cash savings of approximately $20 million based upon the original maturity date of the loan and $200 million in advances.
  • Access of up to $160 million remains potentially available under the expanded loan facility.

Headwinds

  • Commercialization of VOQUEZNA depends on coverage and reimbursement levels from governmental authorities and health insurers as well as market acceptance by healthcare providers
  • Company may use capital resources sooner than expected, or operating plan may overestimate expected product revenues, which could require to reduce expenses or raise additional capital sooner than expected
  • Inherent risks of clinical development of vonoprazan
  • Dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing
  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-2.2%

Avg return

Earnings day

-5.3%

Avg return

5 days after

-0.4%

Avg return

30 days after

42%

11 / 26 earnings

Positive

+10.0%

Q1 2023

Best reaction

-22.8%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%+6.9%-18.6%
Q4 2025+9.9%-10.3%-14.1%
Q3 2025-1.8%+8.1%+9.8%
Q1 2025-21.7%-44.1%-0.9%
Q4 2024-3.0%-21.2%-19.7%
Q3 2024-6.3%-47.1%-50.0%
Q2 2024+8.7%+12.6%+63.9%
Q1 2024-5.6%+2.9%+5.0%
Q4 2023-8.7%-16.0%+13.4%
Q3 2023-4.0%-9.2%+7.8%
Q2 2023+3.0%+2.0%-15.8%
Q1 2023+10.0%+5.0%+8.3%
Q4 2022-7.1%-10.0%-29.9%
Q3 2022-9.8%+4.0%+5.3%
Q2 2022-22.8%-20.1%-3.6%
Q1 2022-6.3%-10.5%-19.7%
Q4 2021+2.0%-4.2%-24.9%
Q3 2021+1.7%-2.4%-13.7%
Q2 2021+1.5%-0.1%+6.6%
Q1 2021+6.4%+0.9%+5.9%
Q4 2020+3.6%+1.9%+9.8%
Q3 2020-8.6%-3.0%+12.6%
Q2 2020+5.1%+12.2%+5.3%
Q1 2020-0.9%-1.4%+24.1%
Q4 2019-3.2%-3.2%+13.5%
Q3 2019+6.5%+9.1%+9.0%
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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