PHAT

Interested in Phathom Pharmaceuticals, Inc.? Here are five stocks we like better. Q2 results exceeded expectations: Revenue rose 88% year over year to $74.3 million, while Phathom achieved its first positive operating profit excluding stock-based compensation and generated approximately $1.6 million in operating cash flow. Full-year revenue guidance was lowered to $310 million–$325 million because of prior-authorization and fulfillment hurdles for some VOQUEZNA patients, though management emphasized that broad payer access remains intact and expects profitability to continue through 2026. VOQUEZNA prescriptions continued to grow, with nearly 1.7 million filled since launch, while pipeline expansion includes fourth-quarter 2026 results for an eosinophilic esophagitis study and a planned Phase III trial for as-needed treatment of non-erosive GERD. Phathom Pharmaceuticals (NASDAQ:PHAT) reported second-quarter 2026 revenue growth of 88% year over year and said it achieved positive operating profit excluding stock-based compensation for the first time in its history, reaching the milestone one quarter ahead of its prior plan. The company reported second-quarter net revenue of $74.3 million, up $34.8 million from the prior-year period and up $16 million, or 27%, sequentially from the first quarter of 2026. Cash operating expenses, excluding stock-based compensation, were $56.4 million, down $29.7 million, or 34%, from the second quarter of 2025. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Phathom generated approximately $1.6 million in cash from operations during the quarter and ended the period with $182.5 million in cash and cash equivalents. President and CEO Steven Basta said the results reflected the company’s operational pivot toward a gastroenterologist-focused commercial strategy for VOQUEZNA. “For the first time in Phathom’s history, and ahead of our guidance, we generated positive operating profit in Q2, excluding stock-based compensation,” Basta said. He contrasted the result with an operating loss of more than $50 million in the second quarter of 2025. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Phathom updated its full-year 2026 revenue outlook to a range of $310 million to $325 million. Management said the revised range still anticipates meaningful growth in the second half, but reflects feedback that physicians can face administrative hurdles when obtaining VOQUEZNA coverage for patients with less severe gastroesophageal reflux disease, or GERD. Basta said the issue is not a broad loss of payer access, but rather the process around prior authorizations, medical-record documentation and prescription fulfillment. Physicians may be willing to navigate those processes for patients with severe GERD who have not responded to several earlier therapies, he said, while being more reluctant to do so for a broader population of patients. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Management said it is working to improve physician and office-staff education, streamline prior-authorization workflows and encourage greater use of BlinkRx, which can provide support during prescription fulfillment and payer review. Basta said the company’s highest-volume prescribers have generally developed efficient workflows, suggesting the process can be replicated more broadly across gastroenterology practices. “We need to spend less time talking to physicians about how fabulous our drug is because they already believe it, and more time talking to them about how easy it is to get and how do we streamline that process,” Basta said during the question-and-answer session. Chief Financial and Business Officer Sanjeev Narula said the company continues to expect gross-to-net discounts of 55% to 59% for 2026 and gross margin of approximately 80%. Phathom updated its forecast for full-year cash operating expenses, excluding stock-based compensation, to $235 million to $245 million. Narula said expenses are expected to rise modestly in the second half as the company invests in commercial programs, including omnichannel marketing, and clinical development. Still, he said Phathom expects operating profitability, excluding stock-based compensation, to continue in the third quarter and beyond, including for the full year. The company remains on track to achieve durable positive cash flow in 2027, though it expects to use cash during the remainder of 2026 because of anticipated working-capital changes. Since launch through July 17, nearly 1.7 million VOQUEZNA prescriptions had been filled, according to Phathom. Approximately 325,000 prescriptions were filled during the second quarter, including about 209,000 covered prescriptions and roughly 116,000 cash-pay prescriptions. Covered prescriptions represented approximately 64% of second-quarter filled prescriptions. Covered prescription volume increased 24% sequentially. Cash-pay volume increased 16% sequentially. Covered prescriptions rose about 79% year over year, while total prescriptions increased about 88%. Basta said Phathom remains focused primarily on gastroenterologists, which management believes can support $1 billion in annual potential revenue. The company also sees an additional long-term opportunity through greater engagement with primary care prescribers, though management did not provide a specific timeline for broader primary care expansion. Currently, approximately 60% to 70% of the company’s sales calls are directed to gastroenterologists, with the remaining calls largely focused on high-volume primary care prescribers or doctors who have previously written VOQUEZNA prescriptions. Phathom completed enrollment ahead of schedule in its Phase II study of VOQUEZNA for eosinophilic esophagitis, or EoE, in June. Top-line results from the 12-week blinded treatment portion are expected in the fourth quarter of 2026. Management described the study as the first large placebo-controlled trial of an acid-suppression therapy in EoE. Basta said a favorable result could support discussions with the FDA on a potential Phase III program. The company also said the program could provide a pathway to six months of additional VOQUEZNA exclusivity if the results are favorable, the FDA issues a written request involving pediatric patients, and Phathom completes an agreed pediatric study. The company also plans to initiate a Phase III trial in the fourth quarter evaluating VOQUEZNA for as-needed treatment of non-erosive GERD. Basta said Phathom’s earlier Phase II study found that VOQUEZNA delivered faster and sustained relief of episodic heartburn compared with placebo, including superiority on complete relief at three hours and sustained relief over 24 hours. Management said the as-needed program is intended to expand the addressable patient population rather than shift existing daily-use VOQUEZNA patients to intermittent treatment. Basta said current VOQUEZNA users generally have more significant GERD symptoms and need ongoing acid suppression, while the planned as-needed indication would target patients who do not want chronic daily therapy. Phathom did not provide a specific timeline for Phase III results, but Basta said it could be reasonable to expect data in 2027 or 2028 and a potential label update by 2029, without committing to those dates. Asked about tegoprazan and the broader potassium-competitive acid blocker, or PCAB, category, Basta said the entry of a second product could increase physician awareness of the category and potentially benefit the market leader. He pointed to VOQUEZNA’s 93% healing rate in erosive esophagitis studies, compared with an 84.6% healing rate reported for tegoprazan in data discussed at a recent conference. Narula said Phathom does not currently expect a major effect on its 2027 growth or expense outlook from competition, though he noted there could be some impact on gross-to-net dynamics. He also said management believes cash on hand and expected operating cash generation will be sufficient to fund operations and meet debt obligations without another debt or equity raise under the company’s current operating plan. Phathom Pharmaceuticals is a clinical‐stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases. The company's core mission centers on addressing serious GI disorders by leveraging innovative mechanisms of action to improve patient outcomes. Phathom's research and development efforts concentrate on conditions such as Helicobacter pylori infection, erosive esophagitis, gastroparesis and other functional GI disorders where significant unmet medical needs persist. The company's lead asset is vonoprazan, a potassium‐competitive acid blocker (P-CAB) licensed for use in the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Phathom Pharmaceuticals Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

~1.7 million total VOQUEZNA® prescriptions filled to date Record Q2 2026 net revenues of $74.3 million, increased 88% vs. Q2 2025 and 27% vs. Q1 2026 Q2 operating expenses of $63.1 million, reduced by 33% vs. Q2 2025 Initiating Phase 3 clinical trial evaluating as-needed dosing of VOQUEZNA® in patients with Non-Erosive GERD (NERD) Updated full-year 2026 financial guidance Conference call and webcast today, July 30, 2026, at 8:00 a.m. EDT FLORHAM PARK, N.J., July 30, 2026 (GLOBE NEWSWIRE) -- Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical company focused on commercializing and developing novel treatments for gastrointestinal (GI) diseases, today reported financial results for the second quarter ended June 30, 2026, and provided a business update. “The second quarter marked an important milestone for Phathom as we delivered strong quarterly revenue growth, achieved operating profitability, excluding stock-based compensation, and continued to build momentum toward realizing the long-term blockbuster potential for VOQUEZNA," said Steven Basta, President and Chief Executive Officer of Phathom. "Our performance reflects the significant transformation we've made over the past year. We have delivered on the pivot to focus our primary call point on gastroenterologists, substantially reduced our expenses, and nearly doubled quarterly revenue for Q2 of 2026 versus Q2 of 2025. We believe VOQUEZNA has the potential to reach $1 billion in annual revenue through our focus on gastroenterology providers, with an additional $1 billion annual opportunity through expanded engagement in primary care.” “Phathom is a fundamentally different company than it was a year ago. Our second quarter financial performance demonstrates the continued strengthening of our financial profile as we delivered record quarterly revenue and achieved operating profitability, excluding stock-based compensation, for the first time," said Sanjeev Narula, Chief Financial and Business Officer of Phathom. "Our more moderate revenue guidance still reflects meaningful growth in the second half of 2026.” Recent Business Highlights and Second Quarter 2026 Results VOQUEZNA Commercial Progress: Approximately 1.7 million total VOQUEZNA prescriptions have been filled as of July 17, 2026. Approximately 325,000 total VOQUEZNA prescriptions were filled during the second quarter, an 88% increase compared to the second quarter 2025, and a 21% increase compared to first quarter 2026. Approximately 209,000 covered prescriptions were filled during the second quarter, representing approximately 64% of total quarterly prescriptions. Covered prescriptions increased 79% compared to the second quarter 2025 and grew 24% compared to first quarter 2026. Pipeline Updates: VOQUEZNA Phase 3 As-Needed Program Eosinophilic Esophagitis (EoE) Second Quarter 2026 Financial Results: Revenue: Net revenues for the second quarter 2026 were $74.3 million, an increase of 88% or $34.8 million compared to $39.5 million for second quarter 2025. The increase was due to continued growth from execution of Phathom’s commercial strategy. Research and development (R&D) expenses: R&D expenses for the second quarter 2026 were $7.8 million, a decrease of $1.3 million compared to $9.1 million for second quarter 2025. The decrease was primarily due to lower personnel-related expenses and project costs. Selling, general and administrative (SG&A) expenses: SG&A expenses for the second quarter 2026 were $55.3 million, a decrease of $30.0 million compared to $85.3 million for second quarter 2025. The decrease was primarily due to a reduction in commercial-related direct-to-consumer (DTC) promotional expenses and lower personnel-related expenses. Operating expenses: Operating expenses for the second quarter 2026 were $63.1 million, compared to $94.4 million for the second quarter 2025. The decrease of $31.2 million compared to the second quarter 2025 was attributable to cost savings associated with lower commercial promotional spend, lower personnel-related expenses, and lower third-party spend. Cash operating expenses decreased approximately 34% year-over-year, reflecting disciplined execution and continued focus on cost management across the organization. Second quarter 2026 operating expenses included a non-cash charge related to stock-based compensation of $6.7 million, compared to $8.3 million for the second quarter 2025. Non-GAAP operating expenses, which exclude stock-based compensation charges, for the second quarter 2026 were $56.4 million, compared to $86.1 million for the second quarter 2025. Net loss: Net loss for the second quarter 2026 was $17.6 million, compared to $75.8 million for second quarter 2025. Non-GAAP adjusted net loss for the second quarter 2026 was $0.1 million compared to $56.5 million for the same period in 2025. These non-GAAP adjusted net loss amounts, as more fully described below under “Non-GAAP Financial Measures,” exclude non-cash stock-based compensation charges, non-cash interest expense related to the accounting for our revenue interest financing liability, which are in excess of the actual interest owed, and interest expense related to the amortization of debt discount on our term loan. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the tables below. Cash and cash equivalents: As of June 30, 2026, cash and cash equivalents were $182.5 million, an increase of $1.6 million compared to the first quarter ended 2026. Based on its current operating plan, Phathom continues to believe cash on hand along with anticipated future cash generated from operations will be sufficient to invest in its business and satisfy all outstanding debt obligations without requiring additional debt or equity financing. 2026 Financial GuidancePhathom is updating its full-year 2026 financial guidance as follows: Phathom continues to expect to achieve operating profitability for the remainder of 2026 and for the full year, excluding stock-based compensation. The Company is maintaining its guidance for gross-to-net discount (55-59%) and gross margin (~80%). Conference Call and WebcastPhathom will host a conference call and webcast to discuss its second quarter 2026 financial results and business highlights today, July 30, 2026, at 8:00 a.m. EDT. A live webcast will be available on the investors page of Phathom’s website under Events & Presentations. A replay of the webcast will be available following the completion of the call and will be archived for up to 90 days. Non-GAAP Financial MeasuresThis press release includes financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP), and also certain non-GAAP financial measures. In particular, Phathom has provided non-GAAP operating profitability, operating expense, adjusted net loss and adjusted net loss per share, adjusted to exclude the items below. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. However, Phathom believes the presentation of non-GAAP operating profitability, adjusted operating expense, net loss and adjusted net loss per share, when viewed in conjunction with GAAP results, provides investors with a more meaningful understanding of ongoing operating performance. Non-GAAP operating profitability and non-GAAP operating expense exclude non-cash stock-based compensation, which is impacted by changes in the market price of common stock. Adjusted net loss and net loss per share exclude (i) non-cash stock-based compensation, (ii) interest expense related to the accounting for our revenue interest financing liability, which are in excess of the actual interest owed, and (iii) interest expense related to the amortization of debt discount on our term loan. Phathom does not provide a reconciliation of projected non-GAAP operating profitability or operating expense to GAAP operating expense due to the inherent difficulty in forecasting and quantifying non-cash stock-based compensation which is dependent on changes in the market price of common stock and necessary for such reconciliation. Phathom believes the presentation of these non-GAAP financial measures provides useful information to management and investors regarding Phathom's results of operations. When GAAP financial measures are viewed in conjunction with these non-GAAP financial measures, investors are provided with a more meaningful understanding of Phathom's ongoing operating performance and are better able to compare Phathom's performance between periods. In addition, these non-GAAP financial measures are among those indicators Phathom uses as a basis for evaluating performance, and planning and forecasting future periods. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. A reconciliation between these non-GAAP measures and the most directly comparable GAAP measures is provided later in this press release. About Phathom Pharmaceuticals, Inc.Phathom Pharmaceuticals is a biopharmaceutical company focused on the commercialization and development of novel treatments for gastrointestinal diseases. Phathom has in-licensed the exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) for the U.S., Europe and Canada. Phathom currently markets vonoprazan in the United States as VOQUEZNA® (vonoprazan) tablets for the relief of heartburn associated with Non-Erosive GERD in adults, the healing and maintenance of healing of Erosive GERD in adults and relief of associated heartburn, and as part of VOQUEZNA® DUAL PAK® (vonoprazan tablets, amoxicillin capsules) and VOQUEZNA® TRIPLE PAK® (vonoprazan tablets, amoxicillin capsules, clarithromycin tablets) for the treatment of H. pylori infection in adults. For more information about Phathom, visit the company’s website at www.phathompharma.com and follow on LinkedIn and X. Forward-Looking StatementsThis press release contains forward-looking statements, including without limitation statements regarding: our guidance and expectations regarding financial results for 2026, including revenues from sales of VOQUEZNA, operating expenses, gross-to-net and gross margin; our beliefs, outlook and expectations with respect to future commercialization plans, activities and potential results; our belief in the potential size of the commercial opportunity for VOQUEZNA and ability to realize its potential; our belief in our ability to maintain operating profitability excluding non-cash stock based compensation; our belief in the sufficiency of our cash and expected revenues to fund our current operating plan and meet outstanding debt obligations; our development plans and potential timelines including our expectations for reporting topline results from the pHalcon-EoE-201 trial and planned activities with respect to our Phase 3 clinical trial in as-needed use; our business strategy, goals, mission and vision, including our goal to be a leader in GI; and our other expectations, forecasts and predictions as to future performance, results and likelihood of success. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risk that: we may not be able to continue to successfully commercialize VOQUEZNA, achieve operating results, revenues or growth, at the levels we expect, or realize the potential market opportunity; the market opportunity for VOQUEZNA may be significantly smaller than our expectations; market acceptance for VOQUEZNA from healthcare professionals, patients, and payors in the indications for which it is approved may be significantly lower than we anticipate; we may encounter coverage, reimbursement, market access, or other issues in the course of our commercialization efforts that may negatively impact our efforts and results; our ongoing and planned commercial activities may not have the impact on results we expect; the unmet need for new treatment options in GERD may not be as high as we anticipate; estimates of the number of patients with the disorders for which VOQUEZNA is approved, now or in the future, and our estimates of potential market size may not be accurate; our decisions as to where to allocate our resources and focus our efforts may not lead to the results we expect; we may not seek, achieve or maintain the patent and regulatory exclusivity we expect or that could be available to us and may encounter generic competition sooner than we anticipate; our results may be negatively impacted by the launch of other competitive products; we may experience adverse impact as the result of our dependence on third parties in connection with commercialization, product manufacturing, research and preclinical and clinical testing; we may be negatively impacted by regulatory developments or other governmental actions in the United States, including government healthcare reform; we may encounter unexpected adverse side effects or inadequate efficacy of VOQUEZNA that may limit or impair market acceptance or impair current or future development or regulatory approvals, or may result in recalls, withdrawals or product liability claims; we may not be able to obtain and maintain intellectual property protection important to our business; if we were to breach our license agreement with Takeda for vonoprazan, Takeda might take action, including termination, that would significantly impair our business; we may encounter potential delays in the commencement, recruitment, enrollment, data readouts and completion of our clinical trials; we may receive negative or mixed results from our ongoing or future clinical trials that impact our business, goals or future opportunities; our operating expenses and cash use may be higher than we anticipate, including if we decide to engage in activities not currently in our plan or if we face unexpected, or higher than anticipated, expenses, including as the result of unexpected events such as litigation; depending on our operating results and activities, we may not achieve our financial guidance and we may not maintain operating profitability or cash flow positivity on the timelines we expect or at all; for the foregoing or other reasons, in the future, we may not have sufficient cash to fund our operations at the levels we expect or to meet our obligations under the term debt or revenue interest financing agreement (RIFA) or our other obligations or to enable us to achieve profit from operations; we may need to or decide to raise additional capital and we may not be able to do so on acceptable terms or at all; and any of the foregoing or other factors may negatively impact our ability to achieve our plans, goals, mission, vision and potential. For additional discussion of these and other risks, see the risk disclosure in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this presentation to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. MEDIA CONTACTNick [email protected] INVESTOR CONTACTEric [email protected] © 2026 Phathom Pharmaceuticals. All rights reserved.VOQUEZNA, VOQUEZNA DUAL PAK, VOQUEZNA TRIPLE PAK, Phathom Pharmaceuticals, and their respective logos are registered trademarks of Phathom Pharmaceuticals, Inc.

Phathom Pharmaceuticals, Inc. (PHAT) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to a loss of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.18, delivering a surprise of -5.88%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Phathom Pharmaceuticals, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $74.27 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.71%. This compares to year-ago revenues of $39.5 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Phathom Pharmaceuticals shares have lost about 29.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Phathom Pharmaceuticals has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Phathom Pharmaceuticals was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $93.24 million in revenues for the coming quarter and $0.09 on $335.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, BioHarvest Sciences Inc. (BHST), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BioHarvest Sciences Inc.'s revenues are expected to be $9.88 million, up 15.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phathom Pharmaceuticals, Inc. (PHAT) : Free Stock Analysis Report BioHarvest Sciences Inc. (BHST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Phathom Pharmaceuticals Inc (NASDAQ:PHAT) achieved its first-ever positive operating profit (excluding stock-based compensation) in Q2 2026, ahead of guidance. Revenue grew 88% year-over-year to $74.3 million, driven by the successful 'GI First' strategy. Cash operating expenses were reduced by 34% year-over-year, demonstrating strong cost discipline. The company generated positive cash from operations for the first time, ending the quarter with $182.5 million in cash. Enrollment in the Phase 2 EOE trial was completed ahead of schedule, with top-line data expected in Q4 2026. Physicians face friction in the prior authorization process for Voquezna, which may limit broader prescribing for less severe GERD patients. Full-year 2026 revenue guidance was slightly lowered to $310-$325 million due to this friction. The company expects to use cash for the rest of the year due to working capital changes, delaying durable cash flow positivity until 2027. Cash operating expenses are expected to increase in the second half of 2026 due to strategic investments, including the Phase 3 as-needed GERD trial. The competitive landscape is intensifying with the potential entry of a second PCAB (tegoprazan), which could pressure gross-to-net discounts. Here are the key Q&A highlights from Phathom Pharmaceuticals Inc (NASDAQ:PHAT)'s Q2 2026 earnings call. Warning! GuruFocus has detected 3 Warning Signs with PHAT. Is PHAT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the "friction" physicians are experiencing with Voquezna and how you plan to address it?A: (Steve Basa, President and CEO) The friction is not about a lack of access or coverage, which is good, but about the workflow and perception of difficulty. Physicians love the drug but are hesitant to prescribe it broadly for less severe patients due to the perceived effort of prior authorizations (PAs) and cost concerns. Our plan is to streamline the process through better education for physicians and their staff on documentation, and by encouraging them to send prescriptions to Blink, which provides additional PA support and can improve the fulfillment process. This is an incremental, coachable process, not a binary fix. Q: How do you view the competitive dynamic with the potential entry of a second PCAB (Tegoprazan), and what does it mean for your 2027 growth and profitability?A: (Steve Basa, President and CEO) Historically, a second entrant in a category (like PPIs) expands the overall market by shifting physician perception from a single drug to a new category. We believe this will benefit Voquezna as the category leader. On comparative data, the primary endpoint for erosive esophagitis is healing rates; Voquezna has a 93% healing rate versus the 84.6% reported for Tegoprazan. (Sanjeev Narula, CFO) We don't expect a major impact on our 2027 growth trajectory or OpEx. We view this as a potential positive for the category. Q: Regarding the new "as-needed" Phase 3 trial for non-erosive GERD, how do you view the risk of cannibalizing your current daily-use patients versus expanding the market?A: (Steve Basa, President and CEO) We see this as a market expansion opportunity, not a cannibalization risk. The patients currently on Voquezna have severe GERD (e.g., erosive esophagitis) and need daily acid suppression. The as-needed population is different: patients on daily PPIs who don't have heartburn every day and prefer an on-demand option. This trial targets a new, incremental patient segment and will provide a unique value proposition for future primary care expansion and direct-to-consumer advertising. Q: Is the "friction" you're seeing mostly with new prescribers, or is it across the board, even with your high-volume prescribers?A: (Steve Basa, President and CEO) It's across the board, but manifests differently. Our highest-volume prescribers have already worked through the process and streamlined it for their offices. The friction is more pronounced as we broaden to new GI practices and as existing prescribers go deeper into their patient base for less severe cases. For these physicians, the trade-off between the drug's efficacy and the perceived effort to get it covered becomes a bigger hurdle. Our focus is on educating all offices to replicate the efficient processes of our top prescribers. Q: You mentioned driving more scripts through Blink (specialty pharmacy). How easy is it for a physician to change their behavior and send scripts there?A: (Steve Basa, President and CEO) The process is very simple. The physician just needs to select Blink in their EMR when submitting the script instead of a local retail pharmacy. Once that happens, Blink handles the downstream support, including PA assistance and appeals. The key is educating physicians on this simple first step and the significant benefit it provides in streamlining the entire fulfillment process. Q: For the EOE Phase 2 trial, what is the "bar for success" to move to a Phase 3, and is this data key for the pediatric extension?A: (Steve Basa, President and CEO) There is no single bright-line metric. We need to see enough benefit in the Phase 2 data (eosinophil count reduction and symptom improvement) to design a Phase 3 trial with a reasonable probability of success. This is the first large, well-controlled trial of acid suppression in EOE, so the data will inform the future trial design. The Phase 2 results are a key piece for the end-of-Phase 2 FDA conversation, which will guide the pediatric extension plan. Q: How should we think about future investment in OpEx now that you've streamlined costs?A: (Sanjeev Narula, CFO) We have reached a sustainable infrastructure level. Going forward, we will make selective, incremental investments to drive top-line growth. This includes launching an omnichannel marketing program and initiating the Phase 3 as-needed GERD trial in the second half of 2026. We will maintain our expense discipline while strategically adding investments to grow revenue. Q: Regarding the $1 billion primary care opportunity, are there any near-term plans to expand beyond the GI-First strategy in 2026 or 2027?A: (Steve Basa, President and CEO) We are already calling on some primary care physicians (about 30-40% of sales calls), but our primary focus remains on GI. The timing for a major expansion into primary care is not set. It could be in 2027, 2028, or 2029, and may be tied to the as-needed indication. We will make that decision based on internal metrics regarding return on investment and will communicate our plans when we are ready. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Commercial push: Phathom has expanded its salesforce to more than 290 reps focused on gastroenterology and is targeting $1 billion in annual GI revenue as VOQUEZNA shows early adoption—about 45% new-to-brand share among the top 300 GI writers and >30% across the top 3,000 in Q1 versus PPIs. Financials and guidance: Q1 net revenue doubled to $58.3 million (104% YoY) with ~1.35 million prescriptions filled through April 17, and the company reiterated 2026 guidance of $320–345 million in revenue while aiming for operating profitability excluding stock-based compensation by Q3 and positive cash flow in 2027 (cash on hand ~ $181M). Pipeline and competitive outlook: The Phase II eosinophilic esophagitis trial is enrolling ahead of schedule with top-line data expected late Q4 2026/early Q1 2027, and management is preparing for a potential second P-CAB entrant (tegoprazan) in 2027 but sees no compelling reason for physicians to switch from VOQUEZNA based on current data. Interested in Phathom Pharmaceuticals, Inc.? Here are five stocks we like better. Phathom Pharmaceuticals (NASDAQ:PHAT) reported first-quarter 2026 net revenue of $58.3 million, more than doubling the $28.5 million recorded in the same period a year ago, as the company emphasized continued progress in deepening adoption of its acid-suppression medicine VOQUEZNA among gastroenterologists. On the company’s quarterly conference call, President and CEO Steven Basta said Phathom has “transitioned the strategy and profile of this business” toward a gastroenterology-focused commercial approach and believes early indicators—particularly new-to-brand switching—support that strategy, even as total prescription trends reflected typical first-quarter seasonality. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Basta said Phathom expanded its sales team in recent months, adding “nearly 50 new sales representatives trained and deployed into the field,” and that the company began the second quarter with “more than 290 reps in place.” He said sales force alignment for high-frequency calls on gastroenterologists is complete and that the company is rolling out enhanced healthcare professional (HCP) marketing programs to support the field team. Phathom’s goal, he said, is to build toward “$1 billion in annual revenue from gastroenterology prescriptions,” with a longer-term opportunity in primary care that could potentially be larger as patients return to primary care physicians (PCPs) and share their VOQUEZNA experience. → Did Qualcomm Just Put Apple in Check? Discussing market opportunity, Basta pointed to the volume of proton pump inhibitor (PPI) prescribing in gastroenterology and Phathom’s belief that a 20% to 30% market share among gastroenterology prescribers could support the $1 billion target. He highlighted prescription share metrics among high-volume GI writers: Among Phathom’s top 300 gastroenterology writers in Q1, VOQUEZNA achieved approximately 45% new-to-brand (NBRx) market share compared to PPIs, according to Basta. Across the top 3,000 gastroenterology writers in Q1, cumulative NBRx share remained “north of 30%” compared to PPIs, he said. Basta said the company views NBRx growth as a leading indicator of future total prescription (TRx) growth because it reflects patients being switched to VOQUEZNA for the first time and then potentially remaining on therapy. He cited company analysis showing that among a cohort of patients who started VOQUEZNA in 2024, an average of about six bottles were dispensed over the subsequent 12 months, adding that 18% of patients who had stopped therapy restarted within 12 months of their original prescription. → Is Oracle Undervalued as Cloud Growth Accelerates? Basta said that through April 17, about 1.35 million VOQUEZNA prescriptions had been filled. In the first quarter, roughly 268,000 prescriptions were filled, including about 168,000 covered prescriptions (approximately 63% of total) and about 100,000 cash-pay prescriptions. On a year-over-year basis, the company said covered prescriptions grew about 91%, while total prescriptions filled rose about 115%, which Basta attributed to the introduction of a cash-pay option for Medicare patients in April 2025. He also noted the resolution of an “incremental IQVIA reporting gap” by mid-March, adding that the TRx numbers shared on the call include prescriptions IQVIA did not capture. Looking into the second quarter, Basta said prescription trends improved late in the first quarter and early in April. He said weekly TRxs in March approached prior December highs and that two of the first three weeks in April reached new all-time highs for covered prescriptions. Management also addressed the mix between cash-pay and covered prescriptions. Basta said the company saw “a little bit of a bump up” in cash-pay in Q1 and attributed it to insurance reset dynamics and high-deductible plans. Chief Financial and Business Officer Sanjeev Narula added that the company was already seeing that mix moderate after Q1. Narula said first-quarter revenue of $58.3 million represented 104% year-over-year growth and 1% sequential growth over Q4 2025. He described revenue as “somewhat light compared to our internal expectation” due to market access seasonality, winter storms, and the deployment timing of new sales team members, but said the company remains confident given recent weekly prescription growth and the expanded sales force now in place. Narula said first-quarter gross-to-net discount came in at the lower end of the company’s 55% to 59% guidance range, influenced by channel mix and a higher proportion of cash-pay prescriptions. Gross margin was approximately 80%, in line with guidance, and now reflects certain third-party fulfillment costs being accounted for in cost of goods sold rather than gross-to-net adjustments, he said. Cash operating expenses, excluding stock-based compensation, were $56.2 million. Narula said the sequential step-up was expected and driven by: Sales force expansion The annual national sales meeting in February Ramp-up of the phase II eosinophilic esophagitis (EoE) trial Despite the quarter’s expense level, Narula said cash operating expenses were down about 43% year-over-year versus Q1 2025, which he attributed to ongoing cost discipline. Phathom reported a loss from operations excluding stock-based compensation of approximately $9.9 million, according to Narula. The company ended the quarter with about $181 million in cash and cash equivalents. Narula said Q1 net cash usage for operations was about $15 million, driven by timing of annual bonus payouts and working capital timing, and noted cash usage also reflected flows tied to an equity raise and a debt amendment. For full-year 2026, Narula said the company is maintaining prior guidance, including: Net revenue of $320 million to $345 million Gross-to-net discount of 55% to 59% Gross margin of approximately 80% Cash operating expenses (excluding stock-based compensation) of $235 million to $255 million Narula said the company expects revenue to be more heavily weighted to the second half of the year and that expenses should “modestly step up” in Q2 due to a full quarter of the expanded sales force and EoE trial timing. He reiterated the company’s expectation to achieve operating profitability excluding stock-based compensation by Q3 and for full-year 2026, with positive cash flow in 2027. Narula said Phathom’s phase II EoE trial is enrolling ahead of schedule and that the company now anticipates top-line data by late Q4 2026 or early Q1 2027. Basta also discussed investor questions about a potential new P-CAB competitor in the U.S. market, saying Phathom is preparing for a potential second P-CAB approval in 2027. He referenced two tegoprazan abstracts released ahead of Digestive Disease Week (DDW), describing them as supporting the effectiveness of P-CABs as a class. While noting that cross-trial comparisons have limitations and the studies were not head-to-head, he compared results from Phathom’s VOQUEZNA phase III erosive esophagitis trial—where he said about 93% of patients achieved healing by eight weeks—with the reported tegoprazan study, which he said showed about 85% healing by eight weeks. During Q&A, Basta said awareness of tegoprazan is currently low given the lack of a commercial organization and that a second entrant could shift physician mindset toward viewing P-CABs as a category. He said prior market experience suggests first movers often retain a large share as category awareness grows. He also said he sees “no compelling reason” for physicians to switch patients from VOQUEZNA to another P-CAB based on the currently available data. On longer-term strategy, Basta said Phathom is beginning outreach to identify complementary GI assets that could be added to its sales force but said there is “not urgency” and he does not want to distract the field team from building VOQUEZNA adoption. He also said the company is evaluating potential additional VOQUEZNA opportunities, including as-needed dosing and potential use scenarios related to reflux symptoms in patients taking GLP-1s, while declining to discuss potential intellectual property strategies around future indications. Phathom Pharmaceuticals is a clinical‐stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases. The company's core mission centers on addressing serious GI disorders by leveraging innovative mechanisms of action to improve patient outcomes. Phathom's research and development efforts concentrate on conditions such as Helicobacter pylori infection, erosive esophagitis, gastroparesis and other functional GI disorders where significant unmet medical needs persist. The company's lead asset is vonoprazan, a potassium‐competitive acid blocker (P-CAB) licensed for use in the United States. The article "Phathom Pharmaceuticals Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Thursday, Apr. 30, 2026 at 8 a.m. ET President and Chief Executive Officer — Steven Basta Chief Financial and Business Officer — Sanjeev Narula Vice President, Investor Relations — Eric Sciorilli Need a quote from a Motley Fool analyst? Email [email protected] Eric Sciorilli: Thank you, operator. Hello, everyone, and thank you for joining us this morning to discuss Phathom's first quarter 2026 results. This morning's presentation will include remarks from Steve Basta, our President and CEO; and Sanjeev Narula, our Chief Financial and Business Officer. A couple of notes before we get started. Earlier this morning, we issued a press release detailing the results we will be discussing during the call. A copy of that press release can be found under the News Releases section of our corporate website. Further, the recording of today's webcast and the slides we'll be reviewing can also be found on our corporate website under the Events and Presentations section. Before we begin, let me remind you that we will be making a number of forward-looking statements throughout today's presentation. These forward-looking statements involve risks and uncertainties, many of which are beyond Phathom's control. Actual results may materially differ from the forward-looking statements, and any such risks may materially adversely affect our business and results of operations and the trading prices for Phathom's common stock. A discussion of these statements and risk factors is available on the current safe harbor slide as well as in the Risk Factors section of our most recent Form 10-K and subsequent SEC filings. All forward-looking statements made on this call are based on the beliefs of Phathom as of this date, and Phathom disclaims any obligation to update these statements. Later in the call, we will be commenting on both GAAP and non-GAAP financial measures. Specifically in the scope of this discussion, when we refer to cash operating expenses, please note we are referring to the non-GAAP form of this measure, which excludes noncash stock-based compensation. As always, detailed reconciliations between our non-GAAP results and the most directly comparable GAAP measures are included in this morning's press release. With that, I will now turn the call over to Steve Basta, Phathom's President and CEO, to kick us off. Steve? Steven Basta: Thank you, Eric, and thank you, everyone, for joining our call this morning. Let me start with a few highlights and a bit of perspective on the quarter. We more than doubled revenue from Q1 2025 to Q1 2026. We believe we're on track to potentially achieving $1 billion in annual revenue from gastroenterology prescriptions with the potential for a second $1 billion from primary care prescriptions as patients cycle back to share their VOQUEZNA experience with their PCP and we evolve our sales and marketing focus to include this segment in the future. In 2025, we set our strategy to focus on building toward that first $1 billion target in GI. We're executing that strategy. In Q1 of this year, we expanded our sales team with nearly 50 new sales representatives trained and deployed into the field in recent months. Our sales force alignment to enable high-frequency calls on gastroenterologists is complete. We have more than 290 reps in place to start Q2. In parallel, we're rolling out enhanced HCP marketing programs with several initiatives in the works to support the sales team. Our primary sales and marketing focus is on increasing depth of writing among gastroenterologists and associated providers. We're encouraged by the impact we're already having. There are approximately 20 million PPI prescriptions written annually from gastroenterology HCPs. And we believe that 20% to 30% market share among this group should get us to the first $1 billion in annual revenue. We previously discussed that as we look at our top 300 gastroenterology writers, they are already averaging about 20% TRx share compared to PPIs. Importantly, when we look at new-to-brand or NBRx writing among these early adopters, our market share is even stronger. In Q1, VOQUEZNA achieved approximately 45% NBRx market share compared to PPIs among this group of 300 writers. This means that our top 300 gastroenterology writers were selecting VOQUEZNA for their patients nearly 1 out of every 2 times as they switch their patient therapy to a new product. In fact, even as you look as deep as our top 3,000 gastroenterology writers in Q1, cumulative NBRx or new-to-brand prescription market share remains north of 30% in that population of physician writers compared to PPIs. We believe new-to-brand conversions drive future TRx growth as we expect that many of these patients who are converted to VOQUEZNA will elect to remain on VOQUEZNA. While Q1 TRx numbers showed expected seasonality, the underlying trends in prescribing behaviors and particularly new-to-brand switching to VOQUEZNA reinforce our view that our strategy of going deeper in gastroenterology is starting to show early positive indicators. We've transitioned the strategy and profile of this business and we believe the effects of those changes are still getting underway. I'd like to briefly discuss key financial highlights for the quarter and then Sanjeev will provide further commentary during his portion of the call with more detail. Net revenues were $58.3 million for Q1 compared to $28.5 million for the same quarter last year. We believe we're seeing similar early year revenue patterns compared to last year with late March and early April prescription trends indicating the growth going into Q2. We are thus maintaining our revenue guidance for the year. Cash operating expenses, excluding stock-based compensation, were $56.2 million for Q1. Our team continues to exercise fiscal discipline in our operations. And lastly, our net cash usage for Q1 operations was approximately $15 million. A few quick notes on commercial metrics for Q1. Through April 17, about 1.35 million VOQUEZNA prescriptions have been filled. Covered prescriptions increased about 5% during the most recent 4-week period compared to the prior 4-week period, signaling that growth that I previously described in recent weeks going into Q2. Of the approximately 268,000 prescriptions that were filled in Q1, about 168,000 were covered prescriptions, representing approximately 63% of the total, while about 100,000 were filled with cash pay. The incremental IQVIA reporting gap mentioned on our previous call was resolved by mid-March and the TRx numbers we are reporting today include the prescriptions that IQVIA has not captured. On a year-over-year basis, covered prescriptions grew about 91% and total prescriptions filled grew about 115%. The higher growth in total prescriptions reflects the impact of introducing the cash pay option for Medicare patients as of April 2025. Weekly TRx in March approached the previous December highs. And now as we begin Q2, we've seen 2 of the first 3 weeks in April reach new all-time prescription highs for covered prescriptions. I mentioned earlier that we view NBRx prescription growth as an early indicator of how our strategy is playing out. We believe NBRx writing is the leading signal for our growing patient base as it represents a patient being switched to VOQUEZNA prescriptions for the first time. Ultimately, many of these new-to-brand prescriptions progress to consistent refill prescriptions in future quarters, thus driving growth. In Q1, we saw covered NBRx grow approximately 11% over Q4 of 2025, signaling that we are continuing to see a solid rate of new patient starts on VOQUEZNA. The proportion of NBRx being written by gastroenterologists versus other specialties has increased over the last few quarters, indicating the early effect of our strategy focus on gastroenterology. Introducing more new patients with GERD VOQUEZNA is the first step to drive durable growth. Persistent refills for these patients then contribute to growth in future quarters. Among the cohort of patients that started VOQUEZNA in 2024, we saw an average of approximately 6 bottles worth of VOQUEZNA dispensed over a subsequent 12-month period. One note on this analysis is that the analysis may actually understate persistence to some degree as an additional 18% of the patients who had stopped VOQUEZNA through that analysis actually restarted therapy within 12 months of their original prescription. Lastly, we've recently been hearing questions from investors about a possible new P-CAB entrant into the U.S. market. Internally, we're preparing for a potential second P-CAB approval in the U.S. in 2027. Last week, 2 Tegoprazan abstracts related to the erosive esophagitis Phase III trial for this product were released ahead of this year's DDW conference, where the data will be presented next week. The abstracts provide a preliminary summary of the data. As anticipated, the Tegoprazan results support the effectiveness of P-CABS as a class. While cross-trial comparisons have inherent limitations and the studies were not a head-to-head evaluation, it may be helpful to our investors to note that in our VOQUEZNA Phase III erosive esophagitis trial, approximately 93% of patients in all categories of erosive esophagitis achieved healing of their erosions by 8 weeks. In the separate recently reported Tegoprazan study, approximately 85% of patients in all categories of erosive esophagitis achieved healing of their erosions by 8 weeks. We continue to feel confident in VOQUEZNA's robust clinical data profile and are executing our commercial strategy in the current market. Overall, we remain confident in our outlook for 2026. Our foundation is strong. The sales force is implementing our gastroenterology-focused strategy and new patients continue to start therapy. We are fully in execution mode as we continue to work to drive TRx and sales growth. I'll now turn the call over to Sanjeev to take you through our financial updates. Sanjeev Narula: Thank you, Steve, and hello, everyone. We have a lot to cover, so let's jump right into our Q1 results. Revenues for quarter 1 were $58.3 million, reflecting year-on-year growth of 104% and a sequential growth of 1% over Q4 2025. Our Q1 2026 revenue was somewhat light compared to our internal expectation due to market access seasonality and other factors like winter storm and deployment timing of new sales force team members. However, with recent weekly prescriptions demonstrating growth relative to early Q1 and our expanded sales force in place, we remain confident in our outlook for VOQUEZNA in 2026. Our gross to net discount for Q1 came in at the lower end of our 55% to 59% guidance range because of channel mix for [ Cordis ] prescription. Our gross margin was in line with our guidance at approximately 80% for quarter 1. As described during last quarter's call, this now reflects certain third-party fulfillment costs being accounted for as cost of goods sold instead of gross to net adjustments. Q1 cash operating expenses were about $56.2 million, reflecting continued disciplined expense management. The sequential step-up was anticipated and tied to 3 main drivers: expansion of our sales force, our annual national sales meeting in February and the ramp-up of our Phase II EoE trial. In fact, I'm pleased to report that the EoE trial is enrolling ahead of schedule. And as a result, we are anticipating top line data by late Q4 2026 or early Q1 2027. Importantly, we continue to demonstrate expense discipline across the organization with year-on-year cash operating expenses down about 43% compared to Q1 2025. We reported a loss from operations, excluding stock-based compensation of approximately $9.9 million. We ended the quarter with about $181 million in cash and cash equivalent, which reflects roughly $15 million used in Q1 after netting out the flows from our equity raise and debt amendment. The increase in cash usage compared to Q4 2025 was driven by the timing of our annual corporate bonus payout and changes in the working capital due to timing of certain payments. We anticipated these dynamics and remain confident in our path to operating profitability and cash flow positivity. Overall, our balance sheet remains strong and as a result of our operations and the deliberate capital structure enhancement we did at the start of the year. Based on our current operating plan, we believe our cash on hand, along with the anticipated future cash generated from operations will be sufficient to invest in our business, satisfy all outstanding debt obligations at all time without the need for another debt or equity raise. Now let me speak about our financial guidance for 2026. We're maintaining all guidance ranges and estimates provided during last quarterly call. We continue to anticipate 2026 net revenue between $320 million to $345 million. We continue to believe our gross to net discount will be within the 55% to 59% range and gross margin will be approximately 80%. As for spend, we anticipate that cash operating expenses, excluding stock-based compensation, will be between $235 million to $255 million. As we think about cadence, we continue to believe revenues will be more heavily weighted towards the back half of the year. We expect expenses to modestly step up in Q2, reflecting full quarter's worth of cost of the expanded sales force. Lastly, we continue to anticipate achieving operating profitability, excluding stock-based compensation by Q3 and for full year 2026 with positive cash flow in 2027. We remain focused on executing with discipline and we feel confident in our ability to deliver on our GI focused strategy. We ended the quarter with a strong balance sheet and believe we will strengthen our financial position as revenues grow. In summary, our priorities remain clear. First, drive efficient growth towards achieving $1 billion from GI prescriptions. Second, support strategic investments where needed while continuing to be disciplined on spend. As we look ahead, I am encouraged by the efforts and dedication of our commercial and R&D teams. We're energized by the opportunity in front of us and we believe our internal metrics show the momentum is building. With that, I will now turn the call back to Steve for his closing remarks. Steve? Steven Basta: Thank you, Sanjeev, for the detailed financial review. With an expanded and trained sales force executing our gastroenterology-focused strategy and continued expense discipline, we believe we have a clear path to strengthening the revenue trajectory and achieving operating profitability in the months ahead. Thank you to our team and our investors for your continued dedication and support. We look forward to continuing to serve the patients in need of VOQUEZNA. Operator, please open the line for Q&A. Operator: [Operator Instructions] Our first question or comment comes from the line of Yatin Suneja from Guggenheim. Yatin Suneja: Congrats on good performance. So 2 questions for me. First one is on the competition. Steve, I think you just mentioned a little bit about how you see their product. I'd love to understand from a market dynamic perspective, what do you expect? Like, so you are right now the only branded that is doing the heavy lifting. Should we -- do you expect the market to expand or them to take some share? Just love your articulation there. And then maybe second for Sanjeev. I think you touched a little bit on the gross to net dynamic. So I understand, I think there was a better gross to net yield. But your guidance for 55% to 59% still stays. So is there some room there for an upside as we go into second quarter or third quarter because generally they tend to be a little bit better? Steven Basta: Yes. Thanks so much for both of the questions and the kind sentiments. The -- yes, as you sort of described, we are, in fact, tracking the evolution of Tegoprazan sort of as they start to build awareness. It's awareness is at a pretty low level in the market right now because they don't have a current commercial organization. So they're in the NDA review process. Certainly, we expect that as a second P-CAB entrant comes to market, there's a shift in sentiment from Vonoprazan or VOQUEZNA is a new product and I have to learn about a new product to now there's a new category and I have to learn about the new category and think about how to integrate this new category into my treatment. That helps to build awareness within the gastroenterology community and generally what prior market experience for a number of products have shown is that the first mover in that space gets the lion's share of the market, but there's a growth in awareness of a category as a second entrant comes in and we're certainly optimistic in that regard. The other thing is that as we look at the data, there's just no compelling reason for anyone to switch a patient from VOQUEZNA to -- from Vonoprazan to Tegoprazan. The data doesn't suggest that the patient is going to do better. And so we think that the market share that we've won and the presence in the market that we've won is really quite solid. We are going to be continuing to grow our presence in the market. We've got very strong market share among several thousand gastroenterologists and that expands every month as the sales force spends more time. So we've got at least another year to be building that depth of awareness and building the habit among gastroenterologists around prescribing VOQUEZNA. I think that all positions us very nicely. And we think growing awareness of this category will just help build it. Sanjeev Narula: Yes. And Yatin, on your question about gross to net. As we said in our prepared remarks, it came in at the lower end of our guidance and the guidance at 55% to 59%. I think what happens in our business or any business, there is a channel mix that go on quarter-to-quarter and that could change the gross to net percentage. And in first quarter, we see a higher proportion of cash scripts. And what that does is that drives gross to net to be a little lower because cash scripts don't have any gross to net item. So I don't expect us to deviate from our range, but it's going to be within the range. And every quarter could be different because of different dynamics that are going on. But for the full year, that's how we're maintaining our gross to net range at 55% to 59%. Operator: Our next question or comment comes from the line of Umer Raffat from Evercore ISI. Umer Raffat: I wanted to touch up just broadly on your observations commercially with the readjusted commercial focus and what the feedback is and how much of a follow-through you guys are continuing to expect with the turnaround we're seeing on IMS already? And secondly, as we think about sort of the path for the company forward in terms of heading towards sort of better than breakeven, et cetera, would it -- what are the priorities from a potential M&A perspective? And I'm not talking large deals. I'm just saying to enable the OpEx to be levered across a larger sales base in the areas you're already operating in? Steven Basta: Thanks so much for both of the questions. So thinking about first, the commercial focus and what we're seeing, we are feeling and hearing from the field the same kinds of things that you can see in the IQVIA or the IMS numbers in recent weeks and that is there is growing activity, growing momentum in the adoption pattern. We've got territories regularly seeing all-time highs in terms of the new prescription volume that is happening. And one of the reasons that we spent a little bit of time today talking about NBRx trends rather than just TRx trends because the easy thing to look at from IQVIA numbers is sort of look at the TRx trend. But what we think about as a forward indicator of that commercial momentum is how effectively are we converting new patients because those new patient starts are really where we can have an impact. When a sales rep is in an office working with the gastroenterologists about thinking about what kinds of patients are appropriate for VOQUEZNA, they're not changing the established base of patients that are already getting PPIs under the office. The only patients they can switch are the patients that they're seeing in the office at that time. So that's really the new-to-brand volume and that's where we move the needle first and then that foretells the future momentum. So we expect that the momentum on new-to-brand conversions predicts that we're going to have continued momentum on TRx growth and that should show up in the future quarters. And we're quite enthusiastic about that feedback and that dynamic in all of our conversations with physicians and with our field personnel. And our field team is feeling pretty solid about that. And then sort of path forward in terms of M&A priorities and the kinds of things. There's not urgency for us to bring a second thing in. We are starting outreach to identify other GI assets that would be complementary to bring into our sales force. And those could be commercial products or they could be Phase II or Phase III products that we could launch before our LOE date, 2033 or 2034. So we've got a few years to identify those assets and bring them in. There's not a great urgency to do so right now because, quite honestly, I don't want to distract the field. Our team is focused on conversations around VOQUEZNA with accounts and there is still a lot of education and market depth to build in terms of all of those conversations. So we're starting to evaluate those programs. There's nothing imminent, but we are looking at really interesting things and also looking at new applications for VOQUEZNA. We're doing the EoE Phase II trial. We've been evaluating the potential to look at as-needed dosing of VOQUEZNA. There's lots of interesting talk around potential synergy of using VOQUEZNA when patients are on GLP-1s associated with the GERD that arises in the context of GLP-1 use. There are a number of really interesting opportunities that could be expansion opportunities for us just within the VOQUEZNA opportunity set. Sanjeev Narula: And Umer, just to look at the cash flow opportunity in the company, as you pointed out, with the strategy in place and the -- us generating the positive cash flow next year and the cap structure we enhanced at the beginning of the year, I think that gives us the flexibility to meet, obviously, our obligation, but we'll have the flexibility of additional cash to invest as we expand VOQUEZNA potentially in a couple of years, maybe to primary care and maybe combine that with the DTC. So we'll have the resources and the cash flow to be able to do that. So we feel pretty good about what the trajectory is and we're going to take best use of the opportunity. Operator: Our next question or comment comes from the line of Kristen Kluska from Cantor Fitzgerald. Kristen Kluska: Congrats, everybody, on all the great growth you've seen, especially when looking at the trends from last year. So as the breadth and depth of your GI interactions are increasing, how are physicians understanding in a real-world scenario, the additive benefits of VOQUEZNA? And how do these measures and the patient feedback they get then translate to them potentially recommending the product to other patients they have? Steven Basta: So Kristen, thank you. And thanks for the context on both physician understanding and the importance of patient awareness and patient advocacy because both become really important components in how this product grows. What we're seeing is as we have time in the market, I mean, we're now a couple of years into the launch and so the physicians who have adopted VOQUEZNA as a meaningful part of their practice are having the opportunity to get feedback from patients about the significant improvement that VOQUEZNA provides. And it's interesting, we just did a round of market research where we were doing interviews with a significant number of physicians and a significant number of patients. And one of the interesting findings from that research was -- and often there are clinical trials and you see a clinical outcome and then the physician doesn't really know whether or not they can measure that clinical outcome. That's not the case here. The case here is what we see in our clinical trials, which is better outcomes with VOQUEZNA, certainly in erosive esophagitis patients, but also significant alleviation of pain and sort of an increase in the heartburn-free experience for patients with non-erosive reflux, physicians are seeing that from their patients. They are hearing from their patients how much better they feel. And every one of those feedback points, every time a physician talks to a patient who then comes back and says, "Doc, I've not felt this good in years," that conversation is a reinforcing conversation that cements in the mind of the physician, this really is a transformative experience for my patients. And that's part of what drives growth. So part of what drives growth is our sales and marketing activities and the time spent in the office educating the physicians, but a large part of what drives growth is physician experience and feedback from their patients that then causes them to want to prescribe it in more patients. The other thing that happens is not only do patients understand the benefit and have that conversation with their physician, but this becomes the passage to our future expansion back into primary care. Those same patients who are telling their gastroenterologists how much better they feel are going to go back to their primary care physician for their annual physical next year. They're going to be having exactly that conversation with their primary care physician who referred them to the GI. And it's going to naturally ask how did that go? How are you feeling? Are you still having the pain that you're experiencing? That conversation leads to an education of the primary care community and positions us in future years to expand meaningfully in primary care and positions us for possible future initiatives to broaden the outreach. Kristen Kluska: Okay. And as the database for patients that have been treated with VOQUEZNA continues to increase, particularly maybe some more severe patients as you do more work with GIs, are you collecting any -- again, not -- understanding this is in a clinical trial setting, but are you collecting any anecdotes to give you any clues as to where this therapy could potentially be studied for in the future? And then if you were to expand into other indications in the future, are there ways to also strengthen the IP around those opportunities as well? Steven Basta: So absolutely, we are learning from physicians about the breadth of use. And again, in the context of some of the recent market research, we're starting to evaluate this. So we're starting to look at a number of different indications. How would physicians think about using a product on an as-needed basis on a long-term basis for patients who may not require daily therapy, but PPIs can't really be used that way. So that becomes an opportunity to switch a different population of patients and grow utilization. I mentioned earlier to one of the questions that there is an increasing prevalence of gastroesophageal reflux symptom severity in patients who are on GLP-1s. That becomes an increasing prevalence conversation. I've been having a series of dinner conversations with gastroenterologists in recent weeks and it's come up several times that they are now starting to see patients who they're having to have conversations with them about whether or not to titrate their GLP-1s because of the side effect profile of the reflux and the heartburn that they're experiencing and patients really don't want to reduce their GLP-1s if they're losing weight, but they're having significant GERD. So that becomes a significant opportunity. Certainly, in patients who are having severe consequences and a lot of patients with erosive esophagitis, they may progress to Barrett's and progress to having the risk of esophageal cancer and there are a number of potential sort of broadening thoughts that physicians have around how do I consider what patients I'm using this product for those conversations are evolving as we are learning about the breadth of use that physicians want to have. Oh, and then your other question was on potential IP. I apologize, I didn't touch that. I'm going to probably just pass on answering questions about what potential IP we might have around what future products or indications. We'll evaluate that as we get there. Operator: Our next question or comment comes from the line of Paul Choi from Goldman Sachs. Kyuwon Choi: Congrats on the good quarter. To the degree you guys have insight from either the prescription data or physician feedback, can you maybe help us understand or break down how much of the incremental prescription growth is driven by NERD versus GERD? That would be very helpful for clarification. And my second question is, as you think about the potential entrance of a second P-CAB into the category, over the intermediate term, do you envision the category becoming more managed? And if that is the case, do you think PPIs would be an appropriate analog here given that the category eventually had multiple entrants? Steven Basta: So, Paul, thanks for the questions. And in terms of the relative use, so we don't always have visibility on the underlying diagnosis that drove the specific prescription for every one of our TRxs, whether it's a NERD patient or an EE patient or a half EE patient because you may have a patient that had erosive esophagitis and now is having symptoms again, may not have erosions, but the physician is concerned that they might get erosions. So there are patients that sort of cross over between the 2 categories. What we see is generally, a gastroenterologist will start by putting their most severe patients on VOQUEZNA and then they will grow their utilization over time. So often, the starting point is the erosive esophagitis patient who has severe erosions who's failed multiple rounds of PPIs, has failed BID PPIs and there's just no other alternative, they don't have any other way to help this patient, they need to help them heal, that's the patient with which a gastroenterologist may start. When they see success with that patient, they see that VOQUEZNA has actually enabled that patient's erosions to heal, then the conversation that our representative is having in the office is about how the physician can start using it more broadly, maybe it's to all of their Grade C and D erosive esophagitis patients. And then as they see success in those patients, broaden it to all of your erosive esophagitis patients. And then as they're seeing success in those patients, why not broaden it to your patients that have non-erosive reflux but are still having significant pain and are still having nighttime heart burn, not able to sleep or not able to tolerate certain foods. And so there is a natural evolution in a physician's adoption that starts from the more severe patients to the less severe patients, starts with erosive esophagitis and then moves to non-erosive reflux. That's just the natural cadence with which a gastroenterologist tends to adopt this product. And so we see that evolution. There's some skew probably toward more erosive esophagitis patients in the early adoption years and we continue to see those patients being converted, but then expand into non-erosive reflux patients. And then in terms of how the market evolves with a second P-CAB entrant, I mean, there are so many examples where there has been a category where multiple entrants came in over the course of time and the category continued to grow substantially, we would -- as I commented earlier, I think we just expect to see the category of P-CAB adoption grow as physicians become ever more familiar with this mechanism, ever more familiar with the efficacy of these products. And we have a product with really terrific outcomes in which physicians have really significant confidence. Operator: Our next question or comment comes from the line of Joseph Stringer from Needham & Company. Joseph Stringer: Just a follow-up on a previous answer you gave on the primary care setting. I know this is part of your future expansion plans. But just curious if you have any early quantitative metrics on the patients that cycle from primary care through a specialist back to primary care, for example, what's the recapture rate from the initial patient referral, those patients coming back to the PCP? And how is that evolving over time? Presumably, that's already occurring to some extent, but just curious if you had any early color here or commentary, that would be helpful. Steven Basta: Joseph, thanks for the question. I think that's going to be a really important element for us to track and evolve in our understanding over the next couple of years. It's not one where we have significant metrics yet because we're still in early days. We've made the GI pivot just about 12 months ago. And so with that GI pivot a year ago, we haven't had enough time for a significant number of those patients to make it back to their primary care physician to then start getting scripts in their primary care physician. Anecdotally, I would tell you, it was interesting one of the observations from our analytics team is that we are starting to see primary care physicians writing scripts for VOQUEZNA whom we've never called on. That's an indication of exactly that pattern. What we're seeing -- the only way that a physician we've never called on is writing a script for VOQUEZNA is a patient came back to them and asked for it. And that's exactly the pattern that we want to see. But as to the breadth of those metrics and exactly how we track that, it's still early days and we don't have all of those worked out. Operator: Our next question or comment comes from the line of Annabel Samimy from Stifel. Annabel Samimy: So wondering if there's anything that you can share about the dynamics between the cash pay and the covered patients. Do you see any increasing usage of the cash pay market as you're moving into more Medicare populations? And then separately, I guess it's great to see the EoE trial enrolling so quickly. Is that an indication that there could be bigger demand than off-label PPIs would suggest? Can you just give us a little color around what's driving that? Steven Basta: So on the dynamics for cash pay versus covered, I'll start and then, Sanjeev, if you have additional insights, feel free to jump in on this. But we saw a little bit of a bump up in the percentage of patients who received a script on a cash basis rather than a covered basis in Q1. We fully expect that every Q1 because there will be patients who with their health plan resets are going to have a high deductible plan and where they had coverage with a low co-pay. Our co-pay buy-down programs don't bring them down to a low enough price, so they would end up opting for the cash pay price. We think that's a Q1 phenomenon. And then going forward, I would expect it to normalize more consistently with historic levels in terms of the ratio of cash pay to covered. But we don't try to manage that number precisely. What we try to do is really maximize prescriptions and then maximize how many of those prescriptions can get coverage and that number will evolve over time. But I think there's a little bit of a Q1 bump that we experienced. Sanjeev Narula: And we already -- Annabel, we're already seeing that number starting to moderate in the script data after Q1 to Steve's point. So I think that's a natural phenomenon of what happens in quarter 1. Steven Basta: Yes. And then for EoE, what I can describe is what we've heard from the clinical sites, but I can't really extrapolate it out to the entire market yet, but we're certainly seeing the fast enrollment of this trial reflects significant interest in a first-line therapy that doesn't have the significant burden of some of the immunologic changes that more aggressive therapies would have. I mean, if a patient progresses to Dupilumab, for example, that's a more advanced patient and first-line treatment standard of care for many EoE patients is, in fact, today, PPI therapy. But this is the first big study of acid suppression therapy as a treatment modality in a well-controlled clinical trial. There was a high level of interest among the physicians in the clinical trial to enroll patients, lots of enthusiasm for it. And obviously, we're enrolling ahead of schedule. So certainly pleased with that. We haven't done enough market research on it to predict exactly how broadly that's going to suggest the market opportunity is in EoE when we commercialize it. We'll do that after we see the data from this trial as we're planning on our Phase III trial. Operator: Our next question or comment comes from the line of Denise Ding from Jefferies. Yuchen Ding: Congrats on a great quarter. Can you talk a little bit more about the shape of gross to net throughout the year? Should we expect it to worsen towards the top end of 55% to 59% like it did last year as the percentage of cash pay comes down? And then secondly, Steve, you've talked on a broadening category on a new P-CAB entrant, but curious on your thoughts more specifically for VOQUEZNA. How do you see a new competitor impacting the sales trajectory in 2027 and beyond? Do you expect any sort of pressure from payers that would erode price? Sanjeev Narula: So on the first one, the shape of gross to net, I would stay short of making a prediction about the quarter-to-quarter number. That's the reason we give a range because as you know very well, this is entirely based on the mix of business in each quarter. Clearly, quarter 1 gets impacted by -- a little bit by the cash scripts. But in the subsequent quarter, there are so many other dynamics that go on. So it's kind of hard to say one quarter what percentage is going to be. That's why we want to stay within the range as we did last year. Steven Basta: Yes. And then your second question around sort of the shape of the market in the context of a new competitor entry, I don't think we've got enough specifics yet on how the second product may come to market, what their positioning is going to be. And so it's really hard for us to predict what their market strategy is going to be and therefore, what our response will be. What we are very confident about is the momentum that we're building within the gastroenterology community, the conviction that physicians have around this product. I mean, again, our top 3,000 writers -- now 1 out of every 3 new patients that they are switching acid suppression therapies, they're switching them to VOQUEZNA. That's an enormous share of mind that we have with a broad population of the gastroenterology community. And in fact, that is broadening. And we've got another year at least before second entrant comes in to be building that market share and to be building that mind share that I think will position us really well in the context of the competitive dynamic in the future. Operator: Our next question or comment comes from the line of Mr. Matthew Caufield from H.C. Wainwright. Matthew Caufield: Are there any further insights into the weighting for revenue growth expected between first half and second half? And then additionally, are there thoughts on how we can best expect OpEx trends to continue for the year? I believe there was mention of the OpEx being up in 2Q. Sanjeev Narula: Yes. So Matt, thank you for your question. So I think it's safe to say the revenue trajectory will follow similar trends as last year. I don't want to get into the percentage because if I do that, then I'm actually giving you guidance for a quarter, next quarter, which I don't want to do that. So I think it's fair to say -- I said in my prepared remarks, it's going to be second half-weighted business, which is what happened last year and I don't see that changing this year as well. So that's number one. Number two, on the OpEx. I think a couple of things will happen. Quarter 2, we'll see a slight bump in the expenses from quarter 1 and that's precisely for 2 reasons. One is the EoE trial is ahead of schedule and that's a good news. So there may be a little bit more expense timing-wise in quarter 2 than we had earlier thought about. And number two is the sales force is fully in place. In quarter 1, we were still hiring and that hiring is now complete and the sales force is fully on board. That impact will also reflect in quarter 2. But that's going to be marginal. And after that, I expect our operating expenses to be more or less stable. Operator: Our next question or comment comes from the line of Martin Auster from Raymond James. Martin Auster: There was some pretty interesting data about new-to-brand prescription share amongst the top 300, top 3,000 GIs. Curious if you could give us a little bit more context around that snapshot in terms of sort of how much progress has been made since the new GI-focused strategy has come in? And then if you have a sense of sort of what's a realistic ceiling for higher prescribers in terms of new-to-brand Rx? Steven Basta: So Martin, I mean, the growth to -- thank you for the commentary. I share your enthusiasm that the new-to-brand data actually is a really strong clarifying indicator for where we expect the business is evolving. And it's a metric that we use internally in our forecasting and in a lot of our planning activities is how those trends are going. What we have seen in every category of physician that we call on, whether it's a gastroenterologist or a gastroenterology APP or primary care physician or primary care physician APP as well, as we look at the new-to-brand prescription trends and one of the metrics we use is new-to-brand prescriptions per sales call, those numbers continue to go up. They've been going up for the last 2 years. They continue to go up. On a quarter-over-quarter basis, we are driving increasing effectiveness in those categories. And obviously, now we're focusing on GI and GI APPs as the core call point. But those haven't capped out. Those are continuing to improve and we would expect to continue to improve those over time. And so that I don't have a clear sense for where a cap is in that process. It is encouraging that we are already at the 45% level. I don't know if it caps out at 50%, 70%, 90% of their new-to-brand prescriptions get converted. But one of the other things that happens is as we convert more new-to-brand prescriptions and those patients stay on, the underlying TRx percentage in those offices continues to grow because more -- higher and higher percentage of their patients are already on VOQUEZNA and we're continuing to convert to new patients. So you'll see the TRx percentage grow toward the NBRx percentage. So where right now, we've got 20% penetration in TRx volume in the top 300 accounts, we've got 45% penetration in NBRx, which suggests that we're going to be growing that 20% number toward the 45%. The 2 may never completely match up, but one drives the other. And that's part of why we're focusing on that as a core growth metric and one of our core effectiveness and efficiency metrics in our call strategies and the call allocations. Martin Auster: It was really helpful incremental context and hope it's a metric you'll periodically revisit in the future with us. Steven Basta: Yes. I don't know that we'll do it every quarter, but we will certainly provide periodic updates. Operator: [Operator Instructions] Our next question or comment comes from the line of Chase Knickerbocker from Craig-Hallum. Chase Knickerbocker: Maybe just one quick one for me. And sorry for it to be on competition again here. But Steve, I just wanted your thoughts on one thing specifically. So the way that the potential competitor, the next P-CAB potentially or the way that study was constructed, there's a chance that there might be a couple more superiority claims at launch. So to what extent do you think that matters? And then kind of compare and contrast to how you think the first-mover advantage that you've built up with the 1 million-plus prescriptions since launch and the clinical experience here kind of pairs that? Steven Basta: So I don't have complete visibility on exactly how this competitor is going to launch or what kind of sales force they're going to build. And so it's hard to predict exactly what happens in that marketplace. But as for the data, when we look at the core data from the abstract that's available from -- or the abstracts that are available from DDW and we think about what's important to a physician, again, we were talking earlier about the natural pattern of adoption, the natural pattern of adoption for a physician considering switching patients to a better acid suppression strategy if their prior PPI strategy wasn't working, is that they start their adoption curve with their most severe patients. And then as they see a product work, they move into a broader population of patients. What we see with our data is when you put erosive esophagitis patients on VOQUEZNA, 93% of them heal their erosions within 8 weeks. That's exactly what a physician wants to see. Every physician who is seeing that today and every physician who sees that over the next year as they put erosive esophagitis patients on VOQUEZNA is going to see that their erosions are healing and this product clearly works and it clearly produces really good outcomes. And they're having clear conversations with their patients about how much better they feel because their pain is substantially relieved almost immediately, literally within hours and on the first day and I'll tell you the patient, the first day that I took VOQUEZNA, I felt a whole lot better. It's just really quick how this product works. And so what the physician experience is with VOQUEZNA is enormously satisfying and enormously positive. They see their patients heal. They see -- they hear feedback from their patients that they feel better and they grow their utilization over time. That doesn't get disrupted at all because someone has some statistics measure in some other clinical trial when you know you've got a product that's going to produce 93% healing rates and really good outcomes for your patients. So I just don't see that having any impact in the market in any meaningful context. Operator: I'm showing no additional questions in the queue at this time. At this time, I would like to thank everyone for participating. Thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day. Speakers, stand by. Before you buy stock in Phathom Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Phathom Pharmaceuticals wasn’t one of them. 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Revenue more than doubled year-over-year, driven by the strategic pivot to prioritize high-frequency engagement with gastroenterologists (GIs) over primary care. Management identifies New-to-Brand (NBRx) market share as the primary leading indicator for future growth, noting that top 300 GI writers select VOQUEZNA for nearly 1 out of every 2 therapy switches. The sales force expansion to 290 representatives is now complete, enabling deeper penetration into the approximately 20 million annual PPI prescriptions written by GIs. Performance attribution for the quarter includes expected seasonality and winter storm impacts, though late March and April trends indicate a return to growth trajectory. Strategic positioning focuses on building a $1 billion GI business first, with a secondary $1 billion primary care opportunity expected to develop organically as patients cycle back to their PCPs. Patient persistence data shows high adherence, with 2024 cohorts averaging six bottles dispensed annually and an additional 18% of patients restarting therapy after a gap. Management views the potential 2027 entry of a second P-CAB as a category-building event that will increase physician awareness without disrupting VOQUEZNA's established clinical confidence. Reiterated 2026 net revenue guidance of $320 million to $345 million, with performance expected to be more heavily weighted toward the second half of the year. Anticipate achieving non-GAAP operating profitability by Q3 2026 and full-year 2026, with positive cash flow projected for 2027. The Phase II EoE trial is enrolling ahead of schedule, with top-line data now expected between late Q4 2026 and early Q1 2027. Cash operating expenses are expected to step up modestly in Q2 to reflect a full quarter of the expanded sales force and accelerated R&D spending. Current cash reserves and projected operational cash flow are deemed sufficient to satisfy all debt obligations and growth investments without further equity or debt raises. Gross-to-net (GTN) discounts for Q1 were at the lower end of the 55% to 59% range, primarily due to a higher mix of cash-pay prescriptions during the annual insurance reset period. The IQVIA reporting gap previously identified was fully resolved by mid-March, and reported TRx figures now include previously uncaptured prescriptions. A shift in accounting now reflects certain third-party fulfillment costs within cost of goods sold rather than as GTN adjustments, maintaining a gross margin of approximately 80%. Management is actively evaluating complementary GI assets for potential M&A to leverage the existing sales infrastructure, though no transactions are imminent. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management emphasized that VOQUEZNA's 93% healing rate in Phase III trials provides a high clinical bar that is unlikely to be disrupted by cross-trial statistical comparisons. The entry of a second player is expected to shift the narrative from 'new product' to 'new category,' potentially accelerating the transition away from legacy PPIs. The Q1 GTN favorability was attributed to a seasonal spike in cash-pay scripts as patients navigated high-deductible plan resets; this is expected to normalize within the 55% to 59% range for the full year. Rapid enrollment in the EoE trial suggests significant unmet demand for first-line acid suppression therapies that avoid the burden of more aggressive immunologic treatments. Management is exploring additional opportunities including 'as-needed' dosing and addressing GERD symptoms associated with GLP-1 weight-loss therapies. Early data shows primary care physicians (PCPs) are beginning to write VOQUEZNA prescriptions without direct sales calls, driven by patients returning from specialists with positive feedback. This organic 'halo effect' is viewed as the foundation for a future formal re-entry into the primary care segment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

~1.35 million total VOQUEZNA® prescriptions filled to date $58.3 million in Q1 net revenues, a 104% increase year-over-year Q1 operating expenses of $61.8 million; non-GAAP operating expenses of $56.2 million and net cash usage of ~$15 million, reflecting continued expense discipline and significant year-over-year cost reduction FY 2026 guidance maintained; operating profitability expected beginning in Q3 2026 and for FY 2026 Conference call and webcast today, April 30, 2026, at 8:00 a.m. EDT FLORHAM PARK, N.J., April 30, 2026 (GLOBE NEWSWIRE) -- Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical company focused on commercializing and developing novel treatments for gastrointestinal (GI) diseases, today reported financial results for the first quarter ended March 31, 2026, and provided a business update. “In the first quarter, we more than doubled revenue compared to the prior year Q1. We have implemented our pivot to GI and the associated sales force expansion,” said Steven Basta, President and Chief Executive Officer of Phathom. “We believe there is a path to $1 billion annual revenue in gastroenterology prescriptions, and we are encouraged by the strength of our new-to-brand prescription momentum. Among our top 3,000 GI prescribers as a group, approximately 30% of their new-to-brand prescriptions were for VOQUEZNA, compared to PPIs. While the first quarter reflected seasonal health plan access dynamics and was a bit light to internal expectations, we have seen a return to growth in late March and early April. Two of the first three weeks of April reached all-time weekly highs for covered prescriptions. We believe we are well positioned to strengthen revenue growth and drive continued momentum.” “Our first quarter results demonstrate strong year-over-year revenue growth and continued execution against our plan, with net revenues of $58.3 million and net cash usage of approximately $15 million,” said Sanjeev Narula, Chief Financial and Business Officer of Phathom. “We maintained disciplined operations, reducing year-over-year cash operating expenses by more than 40%, while continuing to invest in our commercial organization and clinical pipeline. With a strong balance sheet, an improved capital structure, and prescription trends strengthening as we enter the second quarter, we are maintaining our full year 2026 guidance and we believe we are on track to achieve operating profitability beginning in the third quarter and for the full year 2026 and reach cash flow positivity in 2027.” Recent Business Highlights and First Quarter 2026 Results VOQUEZNA Commercial Progress: Following Phathom’s 2025 sales force realignment, the field team is fully trained and deployed as we enter the second quarter. Approximately 1.35 million total VOQUEZNA prescriptions have been filled as of April 17, 2026. Approximately 268,000 total VOQUEZNA prescriptions were filled in the first quarter, 115% increase compared to the first quarter 2025. Covered prescriptions for the first quarter grew 91% year-over-year with approximately 63% of total first quarter prescriptions covered by insurance. EoE Clinical Trial Update: The Phase 2 pHalcon-EoE-201 trial evaluating VOQUEZNA in patients with eosinophilic esophagitis (EoE) is enrolling ahead of schedule with topline results now anticipated in late fourth quarter 2026 or early first quarter 2027. First Quarter 2026 Financial Results: Revenue: Net revenues for the first quarter 2026 were $58.3 million, an increase of $29.8 million compared to $28.5 million for first quarter 2025. The increase was due to continued growth from execution of Phathom’s commercial strategy. Research and development (R&D) expenses: R&D expenses for the first quarter 2026 were $7.8 million, a decrease of $1.4 million compared to $9.2 million for first quarter 2025. The decrease was primarily due to lower personnel-related expenses and project costs. Selling, general and administrative (SG&A) expenses: SG&A expenses for the first quarter 2026 were $54.0 million, a decrease of $40.5 million compared to $94.5 million for first quarter 2025. The decrease was primarily due to a reduction in commercial-related direct-to-consumer promotional expenses. Operating expenses: Operating expenses for the first quarter 2026 were $61.8 million, compared to $103.7 million for the first quarter 2025. The decrease of $41.9 million compared to the first quarter 2025 was attributable to cost savings associated with lower commercial promotional spend, lower personnel-related expenses, and lower third-party spend. Cash operating expenses decreased approximately 43% year-over-year, reflecting continued focus on cost discipline across the organization. First quarter 2026 operating expenses and first quarter 2025 operating expenses both included a non-cash charge related to stock-based compensation of $5.5 million. Non-GAAP operating expenses, which exclude stock-based compensation charges, for the first quarter 2026 were $56.2 million, compared to $98.2 million for the first quarter 2025. Net loss: Net loss for the first quarter 2026 was $30.4 million, compared to $94.3 million for first quarter 2025. Non-GAAP adjusted net loss for the first quarter 2026 was $14.7 million compared to $77.1 million for the same period in 2025. These non-GAAP adjusted net loss amounts, as more fully described below under “Non-GAAP Financial Measures,” exclude non-cash stock-based compensation charges, non-cash interest expense related to the accounting for our revenue interest financing liability, which are in excess of the actual interest owed, and interest expense related to the amortization of debt discount on our term loan. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the tables below. Cash and cash equivalents: As of March 31, 2026, cash and cash equivalents were $180.9 million. In January 2026, Phathom received $122.0 million of net proceeds from its public equity offering. In February 2026, the Company modified its Hercules Loan Agreement and used $55.8 million of cash to repay a portion of its outstanding debt. Based on its current operating plan, the Company believes its cash on hand along with anticipated future cash generated from operations will be sufficient to invest in the business and to satisfy all outstanding debt obligations, at all times, without the need for additional debt or an equity raise. 2026 Financial Guidance Phathom is maintaining its full year 2026 financial guidance: Net revenues of $320–$345 million Gross-to-net discount of 55–59% Gross margin of approximately 80% Non-GAAP operating expenses, excluding stock-based compensation, of $235–$255 million Operating profitability, excluding stock-based compensation, expected beginning in the third quarter 2026 and for the full year 2026 Conference Call and Webcast Phathom will host a conference call and webcast to discuss its first quarter 2026 financial results and business highlights today, April 30, 2026, at 8:00 a.m. EDT. A live webcast will be available on the investors page of Phathom’s website under Events & Presentations. A replay of the webcast will be available following the completion of the call and will be archived for up to 90 days. Non-GAAP Financial Measures This press release includes financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP), and also certain non-GAAP financial measures. In particular, Phathom has provided non-GAAP operating expense, adjusted net loss and adjusted net loss per share, adjusted to exclude the items below. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. However, Phathom believes the presentation of non-GAAP adjusted operating expense, net loss and adjusted net loss per share, when viewed in conjunction with GAAP results, provides investors with a more meaningful understanding of ongoing operating performance. Non-GAAP operating expense excludes non-cash stock-based compensation, which is impacted by changes in the market price of common stock. Adjusted net loss and net loss per share exclude (i) non-cash stock-based compensation, (ii) interest expense related to the accounting for our revenue interest financing liability, which are in excess of the actual interest owed, and (iii) interest expense related to the amortization of debt discount on our term loan. Phathom does not provide a reconciliation of projected non-GAAP operating expense to GAAP operating expense due to the inherent difficulty in forecasting and quantifying non-cash stock-based compensation which is dependent on changes in the market price of common stock and necessary for such reconciliation. Phathom believes the presentation of these non-GAAP financial measures provides useful information to management and investors regarding Phathom's results of operations. When GAAP financial measures are viewed in conjunction with these non-GAAP financial measures, investors are provided with a more meaningful understanding of Phathom's ongoing operating performance and are better able to compare Phathom's performance between periods. In addition, these non-GAAP financial measures are among those indicators Phathom uses as a basis for evaluating performance, and planning and forecasting future periods. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. A reconciliation between these non-GAAP measures and the most directly comparable GAAP measures is provided later in this press release. About Phathom Pharmaceuticals, Inc. Phathom Pharmaceuticals is a biopharmaceutical company focused on the commercialization and development of novel treatments for gastrointestinal diseases. Phathom has in-licensed the exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) for the U.S., Europe and Canada. Phathom currently markets vonoprazan in the United States as VOQUEZNA® (vonoprazan) tablets for the relief of heartburn associated with Non-Erosive GERD in adults, the healing and maintenance of healing of Erosive GERD in adults and relief of associated heartburn, and as part of VOQUEZNA® DUAL PAK® (vonoprazan tablets, amoxicillin capsules) and VOQUEZNA® TRIPLE PAK® (vonoprazan tablets, amoxicillin capsules, clarithromycin tablets) for the treatment of H. pylori infection in adults. For more information about Phathom, visit the company’s website at www.phathompharma.com and follow on LinkedIn and X. Forward-Looking Statements This press release contains forward-looking statements, including without limitation statements regarding: our guidance and expectations regarding financial results for 2026, including revenues from sales of VOQUEZNA, operating expenses, gross-to-net and gross margin; our beliefs and expectations with respect to strengthening of prescription trends and our revenue growth trajectory; our belief in the commercial opportunity for VOQUEZNA; our commercialization plans and expectations; our expectations and path for achieving operating profitability and cash flow positive operations and anticipated timing of such events; our belief in the sufficiency of our cash and expected revenues to fund our current operating plan and pay outstanding debt obligations; our development plans and potential timelines including our expectations for reporting topline results from the pHalcon-EoE-201 trial; our business strategy, goals, mission and vision, including our goal to be a leader in GI; and our other expectations, forecasts and predictions as to future performance, results and likelihood of success. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risk that: we may not be able to successfully commercialize VOQUEZNA or to achieve operating results, revenues or growth at the levels we expect; the market opportunity for VOQUEZNA may be significantly smaller than our expectations; market acceptance for VOQUEZNA from healthcare professionals, patients, and payors in the indications for which it is approved may be significantly lower than we anticipate; we may encounter coverage, reimbursement, market access, or other issues in the course of our commercialization efforts that may negatively impact our efforts and results; the unmet need for new treatment options in GERD may not be as high as we anticipate; estimates of the number of patients with the disorders for which VOQUEZNA is approved, now or in the future, and our estimates of potential market size may not be accurate; our decisions as to where to allocate our resources and focus our efforts may not lead to the results we expect; we may not seek, achieve or maintain the patent and regulatory exclusivity we expect or that could be available to us and may encounter generic competition sooner than we anticipate; our results may be negatively impacted by the launch of other competitive products; we may experience adverse impact as the result of our dependence on third parties in connection with commercialization, product manufacturing, research and preclinical and clinical testing; we may be negatively impacted by regulatory developments or other governmental actions in the United States, including government healthcare reform; we may encounter unexpected adverse side effects or inadequate efficacy of VOQUEZNA that may limit or impair market acceptance or impair current or future development or regulatory approvals, or may result in recalls, withdrawals or product liability claims; we may not be able to obtain and maintain intellectual property protection important to our business; if we were to breach our license agreement with Takeda for vonoprazan, Takeda might take action, including termination, that would significantly impair our business; we may encounter issues with our ongoing or planned clinical trials, including slower than expected enrollment that affect timing or chances of success; we may receive negative or mixed results from our ongoing or future clinical trials that impact our business, goals or future opportunities; our operating expenses and cash use may be higher than we anticipate, including if we decide to engage in activities not currently in our plan or if we face unexpected, or higher than anticipated, expenses, including as the result of unexpected events such as litigation; depending on our operating results and activities, we may not achieve our financial guidance and we may not achieve profitability or cash flow positivity on the timelines we expect or at all; for the foregoing or other reasons, in the future, we may not have sufficient cash to fund our operations at the levels we expect or to meet our obligations under the term debt or revenue interest financing agreement (RIFA) or our other obligations or to enable us to achieve profit from operations; we may need to or decide to raise additional capital and we may not be able to do so on acceptable terms or at all; and any of the foregoing or other factors may negatively impact our ability to achieve our plans, goals, mission, vision and potential. For additional discussion of these and other risks, see the risk disclosure in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this presentation to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. MEDIA CONTACT Nick Benedetto 1-877-742-8466 [email protected] INVESTOR CONTACT Eric Sciorilli 1-877-742-8466 [email protected] © 2026 Phathom Pharmaceuticals. All rights reserved. VOQUEZNA, VOQUEZNA DUAL PAK, VOQUEZNA TRIPLE PAK, Phathom Pharmaceuticals, and their respective logos are registered trademarks of Phathom Pharmaceuticals, Inc.