PHAT - Earnings call transcript Q2 2024 | Phathom Pharmaceuticals, Inc.

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Operator

Hello, and welcome to Phathom Pharmaceuticals second quarter 2024 earnings results call. [Operator Instructions] Please be advised that today's conference is being recorded. With that, I would like to turn the conference over to Eric Sciorilli, Phathom's Head of Investor Relations. Please go ahead.

Eric Sciorilli

Thank you, operator. Hello, everyone, and thank you for joining us this morning to discuss Phathom's second quarter 2024 results. This morning's presentation will include remarks from Terrie Curran, our President and CEO; Martin Gilligan, our Chief Commercial Officer; and Molly Henderson, our Chief Financial Officer. Operating Q&A also portion Chief team joining our the during of Nabulsi, Officer, be will the Azmi today's call.

website. of we release press couple Earlier the call. will a logistical of we during before Just that Further, under copy get be found today's corporate this webcast discussing morning, of be Releases the can of recording and the the release issued section detailing press section of A be a found the results News under our Events we items started. Presentations corporate website. can our

as this are current Terrie? beliefs and statements. With as All harbor statements filings. Curran, subsequent of slide Phathom's this off. and we and Form that, that as the of such forward-looking section making President prices Before results begin, well These most the and materially risk statements will affect the the us let on Factors today's SEC in are operations throughout of forward-looking you date materially obligation over these me any the Terrie forward-looking XX-K to adversely Phathom of Actual results we any discussion beyond to I business, number trading factors on many involve made Phathom turn to and available the control. statements stock. A risks can remind update forward-looking these uncertainties, can disclaims and based call will now a presentation. the CEO, common of statements our risks the be of statements on and which safe call kick Risk is Phathom's differ recent Phathom's of for from

Terrie Curran

for genericized goals was date, you one approval out years, joining the XX-year-old multiple spanning standard from broad what have favorable and today's that a set last over box versus exactly a X products Eric, an accomplished of X of the founded set you, secured us another. on indications care to call. market. To many those for lofty. But demonstrated start, a we've vision differentiation our do. in and labels, and We've considered on to after Phathom we thank launched coverage commercial we Thank all checked

focused whether new since executing strategies we momentum us efforts the the the have for these second So record as I report half stage reflect impressive full we made track only quarter been on the believe and has and or we specifically XXXX. demonstrates back the launch been with you intend have our story physicians, goals launch, commercial it payers. of to to on during And of our to delivering you're quarter sets of patients XXXX. on results the followed continue team The second following we for great VOQUEZNA. Today, encourage start, as enter how progress our excited I'm strong our on to the

Before coverage. metrics, our like developments. for diving major an X and into provide our launch GERD Non-Erosive update on approval expanded I'd to VOQUEZNA's commercial latest

milestone with strength associated to GERD this with action third be higher demonstrated upon considered alternative with durability market for label, on H. approved allows need an GERD of VOQUEZNA and our previous adults. approval and This GERD announced In Non-Erosive all from treatment our VOQUEZNA's to the Erosive patient This largest XX XX pleased a base and option the Non-Erosive market FDA the has or extremely anticipation U.S. of treated million we XX, of symptom note and of pre-trained upon inadequate a heartburn of effect. relief. Building a commercialization about medication. our pylori. prescription Erosive the patients us alone degree million as to journey, was existing is treatment As option for GERD, for responsible given large for immediately onset of was X/X existing July mirrors that Non-Erosive of VOQUEZNA. GERD indication dissatisfaction impact suffering patient diagnosed PDUFA addressable the important action annually impressively highlighted expanding prescriber in sales the the for VOQUEZNA being total rapid journey our and conditions this to about adults date, over for force that population. target which leverage promotional efforts. the prepared begin the GERD outcome We're is and relief which key in of GERD, approval. It allows the promotion field in with

past a is which we the for in are patients demand bottles. access believe over commercial Non-Erosive have secured to the dose seen for fact, also far we've X we notable GERD the Non-Erosive who approved tablet, increase applies thus already VOQUEZNA prescribed weeks, In XX-milligram GERD. Moreover,

poised opportunity GERD hit Given to ground VOQUEZNA hurdle is been the dynamics overlapping our goal displacing the commercial to has of full market the across another work towards as recognize PPIs. this has our always GERD and conditions, strategy cleared now running. With we approval,

goal. QX, achieving of the placement expansion recently recent After driver we a be will Our on announced commercial addition VOQUEZNA of Cigna national our that CVS announcing formularies key Caremark's to coverage in formularies. midway through

an lives, in this formulary country's secured key As on payers major VOQUEZNA. for will in this for coverage a over later call, ensuring And benefit provide the other Martin several million which manager pharmacy update was responsible largest we placement. widespread XX for development recently commercial

access XXX VOQUEZNA. commercially lives Our to now an estimated million efforts resulted insured have in having

pleased broad PPI while Importantly, securing achieved in for of formularies were early the we've with across VOQUEZNA, prescription. We're strategy this launch. line single-step coverage of in on we still coverage, position a stages with our commercial the successful majority this extremely in through generic

prescribers increasing expanded over evolution that of total of impressive by their XXX,XXX launch success these testament We're from has surpassed I'm and growth energized for and a XX,XXX to of VOQUEZNA filled date, interest metrics patients. the been by of now which are patients. have examples remaining believe availability been trajectories One our to has most demand scripts to the share written, volume. pleased launch

few we programs opportunities programs If Phase for VOQUEZNA. explore that leverage In clinical received X us dosing time first telling EoE. Both Over to the we've are millions improving to for non-erosive suffering just development healed rapid, to launch, the and the lead from indications We're Non-Erosive continue these some to parallel Esophagitis improvements how to physicians and alike. in planning Pictures asset further approved overall made relieving patients aim programs: life indication. thrilled benefits pour of trial to approved, night with sleeping VOQUEZNA a these testimonials the stories that total trial continued more is in in and feedback the FDA see these Eosinophilic to GERD extraordinary from to III are market expand through the we're in not patients opportunity VOQUEZNA these approvals, II proud believe a first-in-class we this positive lives. of months, quality Almost provide will to conditions. And profile able offer either symptoms or have as-needed need. of addressable anecdotes option in of and erosion, potent now quickly PPIs, and years be to patients durable us which to from for with by VOQUEZNA. last initiate suppression continue of differentiate acid-related daily to treatment and Phase

second we call, patients. I'm for will On quarter forward XXXX marketplace. the access dive ended upon We to the Molly further opportunity which and to and is on of for strategies. After commercial in to continuing the VOQUEZNA's possible remain call market, revenues million results to Martin? million of our VOQUEZNA's balance our seeing of deeper results unlocked detail has journey for largest our sheet financial and this X into to achieving critical previous with full preparedness our strong the enhanced over later GERD We've are updates. in the journey evidence confident that commitment reported and us on in delivering VOQUEZNA. Today's $XXX of our a market the position cash. Martin the will the quarters time. in we looking of well. bringing segment side, launch enable short and build us turn now believe closer recent grow development blockbuster I'll to millions milestones progressed period we successes, extremely continue quarter, delivering commercialization Each $X.X

Martin Gilligan

metrics. Today, the while Thanks, XXX% begin has more XX, have over filled which Terrie, ourselves touch the on share of excited on launch details recognition in I'll The months. launch anticipated X stages significant of our perhaps allow and made to still early building me brand scope strides advancing the we've timing, several last hello, and the share the performance updates over in with to will and latest coverage. further and already journey everyone. commercial VOQUEZNA tactics with consider commercial as and which has number more of we made our VOQUEZNA of by filled we're written our of filled July to X,XXX reporting who number now a launch period, latest is over XX. X prescriptions, scripts that written roughly to months Over of prescription indicators the clearest increased by XXX,XXX tandem, the of since scripts reported to than the data. script prescriptions. In has XXX% than exactly the grown written XX,XXX number as available our progress, of of grown July data great I'm on shortly. In I previously happy our as progress is we've and we're prescribers metrics,

QX. growth material all X filled we sustained QX these the of We XXX% observed of X,XXX from number are to of XX,XXX with in in a basis, across growth quarterly increasing than pleased more see metrics. On sequential to scripts

through approximately assistant As through filled as of captured as IQVIA. we've our QX, by flowing are one clarified the retail XX% filled scripts programs. Of retail those captured in include which previous IQVIA patient figures were prescriptions in BlinkRx, through pharmacies, these quarters, by and flowing pharmacies well

which of and to specialty out in of X,XXX the had are patients the of writers of to approximately the practitioners compared mix we believe nurse started continues GIs, the in patients. to growing with millions VOQUEZNA about the XXX% QX's expansion mix are now also we VOQUEZNA have share will number the leaning count. for acid-related primary increase a filled end which And management consider continue called with physicians who long-term the growth evolve non-erosive QX, see written Additionally, quarterly. observe proud heartburn. physicians recently, true. More we important assistants to as specialty cumulative We've GERD to writer reflects the physician towards care approved, prescription, of VOQUEZNA an we label At previously writing hold prescribers

be typically our Another nearly pull-through in XX%, from important XX% report, development reflecting stage accomplishment what commercial has rate Since launch. has and demand from conversion at to our increased fill the the impressive VOQUEZNA earnings coverage. We prescriptions. of date compared an as to last see launch expected this might impact total to of filled been improvement the rate between this

access demand. with improve, the our we rate realize With believe continue fill our more of will the potential recent total wins, to to us allowing associated revenue

VOQUEZNA being patients. would severe XX% in only earned if including I'm placed subject obtain VOQUEZNA's all Aetna endoscopy As we heard and access and believe launch the a an commercial formulary terrific earlier, and given commercial entrants edit Express have This of differently. or utilization been to XX people the estimated UnitedHealthcare, total single made share recently to formularies Cigna as payers, to covered in some to we've Optum of generic end would to successful of the the reimbursement Scripts to advances plans bringing whether exactly we've across ], strategy, genericized [ have often several mention QX, vast Therapeutics. Since earlier at of intended. or majority covered systems million million all evidence lives we step the securing it payer market. Skepticism lives, a Terrie year, surprisingly, behind our frequently this delivered widespread about was in those XXX After us complexity proud But But Caremark, Prime particular, to with of questions of a we surfaced other require govern commercial and part lives. Not prescription. questioned are U.S. you today, on into management coverage. VOQUEZNA's about that be PPI population, we negotiating placement CVS added VOQUEZNA key niche

and available affordable commercially As patients. insured VOQUEZNA now a of is millions to result,

coverage pull on With VOQUEZNA's coverage VOQUEZNA. formulary. contracted our or VOQUEZNA other we Non-Erosive major commercially our access easily were to X believe Additionally, of and able all for now now place payers, aim several the through via wins at regardless are presentation, large off for we with timely GERD of access is the patients is kicked in covered recently demand GERD. Since as is plans PBMs which bowel to type severity extremely launch

our news begins this Immediately force the physicians. Now following sharing approval, began with with the sales non-erosive promotion.

reinforced VOQUEZNA can as goals with inform channels streaming positive One and used to Without as is place, in some profile, as providing spreading ensure which that heartburn is in by about it acid messages emphasizing know an also to to elements focused help strong prescribers effect to are is patients broadcast consumers, night VOQUEZNA's many product commercial label acid such day access relief. Meanwhile, differentiation well of our promotional continues access expanded VOQUEZNA rapid, experiences of as the can and sufferers VOQUEZNA have our all treat communicating power on kick and be and potent about label. with is place word all for the coverage suppression The impact GERD. the DTC simultaneously its main reps VOQUEZNA's patients as and campaign to GERD digital having mission broad GERD airs to sustained are and a across real-world television. durable applicable key all now patients. We're possible physicians an with entire our population, as doubt, VOQUEZNA. With with

significant X launch. numerous the of progress aspects we've last months, Over made across

the weeks elevated scripts, were from erosive want of market. I and the aim non-erosive to the elements our increased each unlocked heightened delivering efforts, GERD feedback emphasize continue these awareness, foundational of coming quarters, been promotional the commercial positioned take the early our launch in high with the that the set and to field have months bar we access and has well VOQUEZNA launch early execute for of Further, we're strong. In ahead. VOQUEZNA of brand the we launch will very with lies We that advantage written the of and brand. on these place, plan full have to opportunity expanded

financial about our We current realize through momentum to to our opportunity. I'll blockbuster ability results. in Molly now walk confident it are our to excited pass and this off Molly?

Molly Henderson

hello Martin, today. you happy with everyone XXXX and you, results Thank call. I'm the our quarter share second on to to financial

strides have Phathom. We quarter for which into made have commercial in great translated a milestones, strong achieving regulatory

Before numbers, X I'd going like note items. the into to

will projected previous quarters we not still during regarding similar this and call we providing to earnings or the First, of early are in calls, be revenues financial as guidance launch.

with my measures and measures Additionally, section on be non-GAAP most measures. I discussed detailed Supporting in directly non-GAAP their reconciliations be will GAAP between and financial commenting GAAP will schedules this be found can both morning's and comparable later in press release.

numbers. Now turning to the

the which sequential we of by million, quarter reported driven in XXXX, inventory increase, a For revenues increase second lesser in this XXX% had prescriptions. Changes VOQUEZNA a stocking quarterly $X.X impact quarter. field represents primarily net the

behaviors sense believe expansion, impact. couple stocking label another before be of quarters of steady-state non-erosive the have we Following will there a better we and still their

quarter impacting As in forth rate onetime we the for were GTN first quarter. with gross observed There to outset of this launch. discount no set net, events our they as expectations a at we in line were the

the through of payers launch, GTN the with we course our As evolve result recently calendar major of end access of the non-erosive to the continue and discount expanded believe will year quarter third over and XXXX. a

the XX, profit a we of million, increase ended which For XX%, margin basis equates June XXX XXXX, about of gross gross quarter points. of to sequential $X.X a quarterly reported

read spend R&D for a of to last related represents second quarter. Both a trial, to Phase with compared to in of to activities down decreases the out wind reflects This which of reported ended lower associated we reduction quarter the XXXX, costs non-erosive quarter our to were which the also trial related last down year. $X P&L operating daily XX% We second XXXX. decrease non-GAAP dosing our III spend expenses. Moving sequentially clinical million primarily XX% the compared

most interest million This QX. Both of on As approximately VOQUEZNA periods for item XXXX for items reconciling about relative related continued noncash a costs, not include the ongoing remainder launch. the $XX.X debt advertising our our of expenses $XX.X In liability spend the increase of XXXX. to operating primarily period's to period kick SG&A, significant to and activities represents expenses $XX.X marketing noncash expense discount. our in amortization we GAAP interest second support full non-GAAP between some $XX.X approximated reconciling were of of interest relative increase million infrastructure DTC these compared an of million and a quarter of build-out which do and reported and stock-based compensation. Other non-GAAP and were by revenue to increases expenses first anticipate significant financing sequential for non-GAAP the to media acid campaign. We quarter our increase to for of include can VOQUEZNA of particular, same noncash related campaign was this XXXX. of Similar commercial driven million the in DTC quarters, our previous SG&A

reported per loss for Turning second loss the We the net of of or quarter $X.XX share million for to loss $X.XX a of to $XX.X of share or compared EPS. XXXX a quarter first sequentially per non-GAAP loss adjusted $XX.X XXXX. million

are VOQUEZNA growth remain launch, We potential results. and X wins to end filled the increase call our opportunity. through revenue our driving contributions to in year, supporting in As of this we available on Of on $XXX an Up million. XXXX, million growth this of through loan. After year that, next from brand reaffirm of teams we scripts will certain which resources a VOQUEZNA pleased XXXX, to We proportional term the mid-June. available $XXX comments. balance long-term a achievement subject of based back includes I are into financial half June in runway is the year-end. With that and continue of have were available which of million payer milestones. We full focused $XX the position of Terrie? are cash our Terrie drawdown and X in cash and into quarters the ensuring expectation believe $XX indications. key our channel, million we remain top expected is spans launch, under most additional our revenue with turn significant, debt maximize plan, the back where remains now to our our closing XXXX, of strong the over available, invested $XXX we believe cash now line needed to financial the have facility the XX, Heading equivalents translate will note, million current retail revenues funds to operating for of thereby

Terrie Curran

new a covered XX% Thank and help proven In adoption you, on numbers: call. $X coverage, to to today's for VOQUEZNA believe in commercial of numerous now just broad months prescriptions without as we revenue accomplishments call, you and peak are heartburn. can the all I again launch filled; thank joining building support key access which potential billion. And on wrapping what the today's X want treatment option acceleration Molly, opportunity XXX,XXX XX,XXX prescriptions up We today greater everyone our to GERD expanded VOQUEZNA's reiterate riders, us Phathom we've under X,XXX consider blocks believe to in cumulative mostly trends. secured having I achieve written; an place since achieved than of relieve realize X label. And in an

conditions. Thank support. over the question-and-answer improving XX-minute value from interest for your quarters, true to stayed execution acid-related joining certain and Operator? or and it drive our facilitate session. we to have continue outcomes. In to of further look patients even a today. with We us appreciate operator We forward through now the again turn of commercial to upcoming milestones lives you the better-than-expected we ahead strategy, I'll to suffering achieving continued will schedule

Operator

question first from our with coming Annabel Samimy Stifel. And of Instructions] the line [Operator

Annabel Samimy

progress. all the on Congratulations

guess of the Just NERD about product, are curious just very patients? I I pretty the the what revolutionary. wanted a PCPs with -- would where we've familiar to start one are claim drug tapping to had the with need be to market but bit conversations and little the expansion the things I'm access to you really care GIs, less GIs that's familiar they from gain is primary to talk opportunity. extent

the sense what So trying it you qualify terms question plans? be you of do much have very have -- the plans restricted types to you and access to Or have going just are the access formularies -- right different efforts that us over your are is second versus help of is access understand can percent you broader the characterize open of plans? just the that of then the a within for what is in than more just I have broader, formularies you various like the now, sort there. And have the or access plans

Martin Gilligan

It's X in Martin. I got your question parts.

it primary expansion. First, And summarize tapping about into NERD I'll the correctly, you're if physicians. take asking I care

So primary of I than much VOQUEZNA agree would any physicians have care that physicians, have GIs primary awareness that mean don't doesn't but with care you a awareness. higher

very the level searching is and on the of as welcome we patients top not equally the X, and opportunity think mechanism as that a be calling earlier, recall, the same that and that. the frequency for we as where what at had unmet know well focused you in on to we're actually physicians, do new ground journey before gastroenterologists. with much care and back we that called we same If primary our we primary have need symptoms the are is high. And care the highest But we're going do launched patients as January, same as on Terrie physicians. mentioned first the they went we physicians but were I know That's starting mostly decile for

granted to going the a know work when communicated XX% going expectation that and So already contacted we'll We are primary exactly up in patients we And doing requested to from their was primary been going. that. the who been big forward. as specifically already said to play also going had we And reaching patients those physicians forward. that care. mention prescribed, those some physicians who what I'll care. Obviously, role already they've that that dialing direct-to-consumer we've went be of got then request to momentum them we're moving VOQUEZNA. really that's out We've And our by -- of is XX%

into really our So primary we I'll heading access. care. good to trajectory now switch feel your about

say, listen, what it's completely to truly that our really quality step and coverage, done like Numbers are XX% just Cigna, tremendous PPI. And through comprised the Each I counts. obviously, million XXX and as our payer really CVS with here's Prime multiple commercial key think Therapeutics, plans each of it's Aetna, But we've of aligned criteria: our we've access. job. UnitedHealthcare. of formularies. multiple I strategy coverage And the Scripts, So of a I'll lives, is great, -- PBM Caremark, contracted about but say for one step Express the one a

will So with an patient our have is and a is, to with VOQUEZNA. one on go have PPI expectation the completed opportunity experience that

Operator

& question the And from coming of Joseph with Company. our Needham line next Stringer

Joseph Stringer

the as You see one? leverage number existing in you so force TRx do coverage. for to you the here. IQVIA insurance and question, anticipate sales mentioned that the impact And maybe can an data, the NERD on two, approval we'll a then launch on guess, the when previous impact follow-up NERD number I the

but in lives You And is you mentioned, meaning for over scenario not coverage which it any carry NERD? the Erosive anticipate NERD for that mentioned percentage guess, wouldn't would case, the that indication. be I be that coverage the But you would of this covered. course, XX% GERD, there to the What bottle? of say, commercial for is, is of

Martin Gilligan

Sure, Joey.

of leveraging, we actually talk we're force force. utilizing We we're about that even non-erosive the if So was that was vision the and Yes, our sales say knowing coming. first, sales and our plan. up part set I'll

been has and on positions. we've been So place in our these footprint calling

really in our question, non-erosive going to prescriptions is to to start were specifically launch, which a the jump of first, we clearly anticipated. what saw but you past weeks, a think I ends a probably tied week, there. jump we X which right? -- So is it's seeing in believe last both We your

to all that over time. But got engines So we've running. will continue grow

announced we running. details our DTC the increasing got the we've as then coverage. of just So commercial And

all they of in So together kind and they're do go working tandem.

is coverage, the that coverage terms is In of bottle. communicating what the the for we're

correct. You're

commercial indications. belief is So that XX% all coverage And coverage the for that our coverage. it's for also

contracts all obviously it's step the as VOQUEZNA our So we and we've informed of to move of And all have of PPI continue indicated. through where for forward. payers our we approval indicate one

Operator

coming question from next of Yatin Guggenheim. our line the with And Suneja

Yatin Suneja

quarter. good very a on Congrats

-- one one help maybe understand where math a suggests couple the are think net. gross for I is quarter. terms the on you to of XX% net it us Could close net questions my Number me. you for yield yield? to Just in that maybe of

that the indication, confirm are deny in how can how the you or evolve? we or improvement a of If sort yield we close be there expect to of reduction an in number? And that will Should should because NERD yield. that

just that's So the first question.

Terrie Curran

Sure.

had expected launch. So yes, as going GTN is playing we into also out

within the we not and numbers as are range inconsistent estimated with the you're what that estimating we see right think that well. I

improved to we XX% going that going on a steady-state to be it that as to GTN. forward, that But building will believe the with won, a launch, said, in far we continue discount recently on expect to continue access XX% see I basis. As we've like into

Yatin Suneja

the blend part, basically a or you're just Not that And right? it's that's -- on retail [indiscernible]? the

Terrie Curran

That's right. That's retail.

Yatin Suneja

refill of And Okay. in to the what if seeing then will for frequency? can EE? are about articulate with treatment of sort Very you good. duration you to mean, how getting I terms And patients regard are average and an maybe what NERD? what talk compare that also, the at would be of refilled you rate, And could NERD uptake, like

Martin Gilligan

know non-erosive on is So it an goes about What spot-on. annual from Yatin, I basis, Things to had patient. and XXX commented average, beyond XXX similarities. on both for earlier days that we the that, erosive patient similar journey indications. And is between are almost PPI a utilization it's very

again, similar. So it's very

of come that XXX-day we're on year refills, launch. terms prescriptions, tracking now new in for would expect exactly fluctuation non-erosive in been board is communicating expect lot number. And we're and So per at patients I to as we've a think enter that successful as you running. as XX% refills, we now then about a DTC new Right XX% starting but we of are

there's we But be be right fluctuation coming the track lot on going should in of months. So to where for right a now launch. in successful we're that a

Operator

And ISI. our with Raffat Umer from the line coming next question is Evercore

Unknown Analyst

in I the has [indiscernible] number? how the on X I about of X scripts firstly, there the on many of you number last from on level, inventory, to secondly, guess, And Umer. the weeks changed quarter, is XQ launch, your think NERD This are second commented inventory for quarter?

Terrie Curran

Yes.

of a I that. bit think we caught little

inventory. was last I think part the on

I'll that cover consistent relates still early we're X you stocking, seeing it first around first first the we after if with we're what but repeat that. So at end weeks, to the launch, of where which in can the is as and quarter. is were inventory maybe But question

not be stocking. seeing And to per then we're significant could revenues repeat more a on se the helpful. the It's impact first driven would if demand. question, you So relative that by

Unknown Analyst

first How quarter? for scripts many number is from one second reported The on we NERD the launch. of seeing are the the

Martin Gilligan

it's scripts We're this. into to had of if But -- are you number we a a just is you. the hard little question the non-erosive tell that. your if for just bit early weeks launch, Umer, hearing really of So time about

which we it's growth really I can have commercial answer running non-erosive, and the the addition the of clearly of going say have of probably would that key of access access things expect specifically. -- in is that. Again, and growth wouldn't running. the the think that of is to -- couple we've the tied drivers, will seen past the over But much to weeks consumer also then right some approval what you now we DTC. the that of But is we question forward X those data be

Operator

with from Our the of coming Goldman Paul Choi question line next Sachs.

Kyuwon Choi

the the progress. maybe just Congrats on care you practitioners all primary question the and of a elaborate Martin. sales the your of channel going the you're kind of for regarding your to opportunity under remind point? indication sort And to additional My Hercules the and your nurse me current access as for what what burn timing effort in my much you is it assistants for is there? And -- relative rate? capital are and clarify just is how Molly, directed an to question of of NERD the this prioritization how specialists the first force the the driver be on is versus just triggers nursing GI about can and thinking criteria the at accessing just or agreement. And Can which planning second

Martin Gilligan

Yes, And on are role big folks specifically Erosive they assistants. hit role. you really the of treatment a making non-erosive, in Paul. are diagnose but big role. they first, nurse they'll practitioner And primary They important played in really play and the physician go magic in who first-line category play a decisions. or a GERD, I'll care,

with them. Gastroenterologists the to influential important. as definitely, high-volume always we those sales we've see definitely that growth remain So to But forward. will category. in spends our you PAs said, and be time force a amongst They're physicians. They're expect NPs going seen and

Molly Henderson

debt triggers. Paul, And it question your relates then on as the to,

upon the And debt does spend. I'll my available XXXX to in down our another something assume our access mentioned through that this spend point think, that pull has have free milestones. But our at under discretion. Martin to We launches, the helped of drawdown have There's are I million those triggers place expect really and tranche cash my remarks, fluctuates have prepared know our of we unencumbered, the resources other in under launch. commercial position we increase significant end remarks we is mentioned think those next year has spend year as good that's that current prepared with don't and we one but the as DTC I indicated, have in there's remaining we spend. And revenue very through $XX is often that the to that, we X reiterate that continue runway another feel have that million I that facilities. amount meaning expect drive $XXX relative feel non-erosive make next available OpEx a activities. as based We and good we we facility that that comment in to a relative our We of

Operator

And our of with from Chase Knickerbocker next question coming line the Craig-Hallum.

Chase Knickerbocker

the on continued progress. Congrats

might the attestation include more Caremark bit you you for I'm details OTC this can there? on sorry, the a first repeat an on and update yourself. little me here of I late and step-through? Just also just for contract, But make joined the me I Does

Martin Gilligan

Yes.

with step include case that terms or something even Cigna, the described, out be. So flag here. and it's it's I was best came our not it we that in one beyond does like what PPI the of of thought others we Scripts, just When attestation, but want Caremark, Express a could I the through strategy that OTC to gates -- I

opportunity not above So that's beyond as Caremark. take really I just the other. was loss, a caution you, that It's just CVS don't that with for that and

step So that we're PPI. strategy a one prescription right with through on

Chase Knickerbocker

second, the States light of what now on kind that you're patients have upside people to kind of we makes previous your include And the Street XX% year. expectations expectations asking previously, does in contract, orient case how of sense. from No, that of of that the of OTC question then kind lives that an covered just of the in kind portion being commercial United under kind thinking that of attestation? And discussed about we've to of

in we to still patients would multiple of from kind they at erosive, relative in majority your as least the of with of half definitely is are of increase which, to a they QX to of to to numbers, today, it kind kind here, of expect kind GIs, XX% my confidence knowledge, speak talk NERD a for writers speak that prescriptions which to As of again, mind? kind sits your back that QX

Martin Gilligan

Yes.

parts question. of So your to a couple

have that off OTC what is to just I'm going of of the them percent would access Chase, million lives, -- Scripts. Express and XXX maybe also say about memory, attestation, XX of going the of out million that In roughly terms under I'm fall

that I the So answers think part. first

part, forward? think the your was Is really that fill terms question second In moving rate. correct, about the I of

Chase Knickerbocker

kind hear of half, kind erosive our in where speak XX% It we and to of about of More second relative writers mean, checks, guys I calls Yes. people in the your how some per are you for Street drive a with they'll increase of just oriented prescriptions demand of that we'll on NERD. increased then from that just write and so kind current of NERD of multiples before. kind in into thinking informing confidence you've QX sequentially that to number? the expectations your on kind

Martin Gilligan

Yes.

of then I'll off the and take So part pass that to Molly. it first

indication. larger a of to really Xx non-erosive erosive. that one the for of than things the about It's that is was years been we've you all So of now number biggest talking

day In night, same is really the the market fact there at opportunity product. It we have it X, right? XX-week all as opened it also just a and quickly, not very both up full a PPI but effect our So think have the entire GERD differentiated period effect label, and talks that works as that works our and all we would continues then I the is X-week which day for about well something also extension. that real

So it's really the sustainability. got

physicians it's can that. recognize all going back you, earlier question, I differentiated. And tell So to Paul's

nurse just as practitioners Paul experience, welcoming and those brought the up assistants, they but are seeing product. You're this physician

large a non-erosive is to just really So set we out exactly as do. we think opportunity. that It's

Molly Henderson

you as running label. and basis. know, was of And it launch, up on we as always between significant quarterly access, knew further going guidance, providing into guidance half to not going a specific we're be to XXXX and non-erosive But the campaign relates back Yes. DTC

for what's feel comfortable of So reiterate is that going rest where with year. it those of we And X the consensus to this full really year now. continue the we items us are to drive on

Operator

last line of Matthew our coming H.C. with And question from Caufield Wainwright. the

Matthew Caufield

Just quickly here.

factor Or to there patients for of a to mix care authorizations GI passed primary physicians GIs, more receptive all specialist and that at specialists? least patients any currently is for of at stage? So that prior are there Is GI already are those essentially being having prescription less the distinctions further to a then favoring progressed seeing at mix? forward this kind

Martin Gilligan

Yes.

So here, might clarify. your actually, miss just let me to different topics I --

think I highest on of is think really for referenced GI new I the obviously focus product mechanisms I the new sooner. GERD products one earlier, naturally First and gastroenterologists. all, out of sooner, specialist decile the -- and we were But of physicians -- adopt gates, also they utilization Erosive this high

this So care, a for I opportunity the has thing or only should that do our reach do launch. that interpret of physician you for one product PPI, clarify identify the just on the and differentiated frequency say patient it a I'll primary through is other to the think say at as we months more for not PPI. PA care. And early thing -- put see I'll just not Do is, look primary our to that that in of where needs really been both step the the

action. up So authorizations the there's picked different and prior levels many them pharmacy, the so of of right actually are no physician at has

I'm work the to that VOQUEZNA. get So actually much care has not sure primary do to

Operator

Ladies this for you. call. Q&A participation your And concludes may we now our the you Thank all today's Thank have session. conference for and disconnect. and that's you gentlemen, time

Phathom Pharmaceuticals (PHAT) 8 Aug 242024 Q2 Earnings call transcript