Phathom Pharmaceuticals (PHAT) investor relations material

Strategic evolution and commercial focus

• Shifted sales strategy in 2025 to target gastroenterologists, leading to improved growth and expense discipline.

• Achieved $55M revenue in 2024 and estimated $175M in 2025, with continued growth expected in 2026.

• Sales force realigned and expanded to 300 reps by March 2026, optimizing territory maps for GI focus.

• Reduced direct-to-consumer spending, prioritizing efficient sales execution and relationship building in GI practices.

• Expect to reach operating profitability in the second half of 2026.

Market opportunity and growth drivers

• VOQUEZNA addresses 40% of GERD patients inadequately treated by PPIs, offering rapid and significant pain relief.

• Targeting 20-30% conversion of 20M GI-written PPI scripts could yield $1B in annual revenue.

• Deeper GI penetration is prioritized before expanding to primary care, leveraging patient referrals and word-of-mouth.

• Growth in 2026 will focus on execution, not major new initiatives, with modest increases in SG&A and R&D.

• Seasonal script declines in January are attributed to insurance plan resets and are considered industry standard.

Financial management and capital deployment

• Recent capital raise aimed at improving capital structure and addressing debt overhang, with plans to renegotiate or refinance debt.

• Modest increases in operating expenses expected in 2026, mainly from sales force completion and EoE trial costs.

• Revenue and OpEx guidance, as well as gross-to-net clarity, will be provided in the upcoming Q4 call.