Phathom Pharmaceuticals (PHAT) Guggenheim’s Inaugural Healthcare Innovation Conference summary

Commercial launch and market dynamics

• Voquezna launch is progressing strongly, with significant impact from the July approval for non-erosive GERD, opening access to the largest segment of the GERD market in the U.S.

• Achieved 80% commercial coverage early in the launch, supported by a direct-to-consumer campaign driving patient demand.

• Prescription growth is robust, with increasing refill rates and persistency trending toward 140–160 days of therapy annually.

• The split of prescriptions via BlinkRx has declined from 50% to 30% as commercial coverage expanded, expected to continue decreasing.

• Key metrics now focus on new and total prescriptions, with demand-written scripts no longer reported due to improved coverage.

Financial performance and outlook

• Gross-to-net discounts have ranged from 50% to 65%, with some expected volatility due to plan changes at the start of the year.

• Confident in meeting full-year 2024 expectations and anticipate continued growth in 2025, driven by demand and primary care adoption.

• No immediate plans to provide annual guidance until more data is available from the non-erosive launch.

• Cash position is strong, with sufficient runway to reach cash flow positivity, factoring in debt facility drawdown and revenue assumptions.

Regulatory and intellectual property status

• Voquezna has five years of NCE exclusivity plus five years under QIDP, totaling 10 years (to 2032), with strong IP protection to 2030.

• Regulatory exclusivity is expected to supersede IP, and multiple legal reviews confirm the 10-year protection applies to the compound.

• The company is evaluating strategies to resolve Orange Book exclusivity listing, including possible petitions or litigation.

• OTC switch is a long-term opportunity, supported by a large market and favorable safety and efficacy profile.