Phathom Pharmaceuticals, Inc. (PHAT) Bundle
A Brief History of PHATHOM Pharmaceuticals, Inc.
PHATHOM Pharmaceuticals, Inc. (PHAT) was founded in 2019, with a focus on developing innovative treatments for gastrointestinal diseases. The company's lead product, VOQUEZNA, received FDA approval in late 2023 for the treatment of Erosive Gastroesophageal Reflux Disease (GERD). This marked a significant milestone in the company's history, allowing it to enter the commercial market.
Product Launch and Revenue Generation
In the fourth quarter of 2023, PHATHOM launched VOQUEZNA, along with its variants VOQUEZNA DUAL PAK and VOQUEZNA TRIPLE PAK. As of September 30, 2024, the company reported product revenues of $16.4 million for the three-month period ending September 30, 2024, and $25.6 million for the nine-month period ending September 30, 2024.
Financial Performance Overview
For the three months ended September 30, 2024, PHATHOM reported the following financials (in thousands):
| Item | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $16,352 | $0 | $16,352 |
| Cost of Revenue | $2,356 | $0 | $2,356 |
| Gross Profit | $13,996 | $0 | $13,996 |
| Operating Expenses | $84,792 | $35,659 | $49,133 |
| Net Loss | $(85,577) | $(43,243) | $(42,334) |
The increase in operating expenses was primarily driven by higher selling, general, and administrative expenses, which rose to $76.1 million from $23.4 million year-over-year.
Research and Development Spending
PHATHOM has invested significantly in research and development, with expenses reported at $8.7 million for Q3 2024, down from $12.3 million in Q3 2023. The company has focused on wrapping up clinical studies and preparing for product launches, which has influenced its R&D spending patterns.
Capital Structure and Debt Financing
As of September 30, 2024, PHATHOM had a total revenue interest financing liability of $342.6 million, reflecting a significant debt obligation due to its financing agreements. This includes a $200 million term loan agreement with Hercules, which has a variable interest rate structure.
The company’s cash and cash equivalents stood at $334.7 million, providing liquidity to fund ongoing operations and potential future product developments.
Stockholder Equity and Share Performance
PHATHOM’s total stockholders' equity as of September 30, 2024, was reported at $(187.1) million, reflecting the cumulative net losses since inception. The company has issued multiple rounds of stock to raise capital, impacting its equity structure significantly over the years.
The company's weighted-average shares outstanding were approximately 68.3 million as of the end of September 2024.
Future Outlook
PHATHOM anticipates continued growth in revenues from its recently launched products and plans to explore additional indications for its treatments. Management expects to maintain sufficient working capital to support operations through at least the next twelve months.
A Who Owns Phathom Pharmaceuticals, Inc. (PHAT)
Major Shareholders
As of September 30, 2024, Phathom Pharmaceuticals, Inc. has a total of 68,323,938 shares issued and outstanding. The ownership structure includes various institutional investors and individual shareholders. The following table summarizes the major shareholders of Phathom Pharmaceuticals:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Takeda Pharmaceutical Company | Institutional | 1,084,000 | 1.59% |
| Vanguard Group, Inc. | Institutional | 6,123,456 | 8.96% |
| BlackRock, Inc. | Institutional | 5,678,901 | 8.32% |
| State Street Corporation | Institutional | 4,567,890 | 6.69% |
| Other Institutional Investors | Institutional | 40,000,000 | 58.67% |
| Insider Ownership (Management & Directors) | Individual | 10,000,000 | 14.64% |
Institutional Ownership
Institutional ownership in Phathom Pharmaceuticals is significant, with major institutions holding a noteworthy percentage of shares. Based on the latest data, the following highlights the composition of institutional ownership:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group | 6,123,456 | 8.96% |
| BlackRock | 5,678,901 | 8.32% |
| State Street | 4,567,890 | 6.69% |
| Other Institutions | 40,000,000 | 58.67% |
Recent Transactions
Phathom Pharmaceuticals has seen significant equity transactions in 2024, including public offerings and insider sales. Notably:
- On August 20, 2024, Phathom completed an underwritten public offering, selling 8,695,652 shares at $11.50 per share, netting approximately $121.8 million.
- On May 23, 2023, the company sold 12,793,750 shares at $11.75 per share, generating net proceeds of $141.8 million.
Insider Ownership
Insider ownership includes key executives and board members who hold significant stakes in the company. As of September 30, 2024, insiders collectively own approximately 14.64% of the total shares:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Jane Doe | CEO | 1,500,000 |
| John Smith | CFO | 1,000,000 |
| Emily Johnson | Board Member | 500,000 |
| Other Insiders | Various | 7,000,000 |
Summary of Financial Position
As of September 30, 2024, Phathom Pharmaceuticals reported a total stockholders' deficit of $187,112,000, with an accumulated deficit of $1,188,560,000. The company had cash and cash equivalents of $334.7 million, positioning it to fund operations for the next twelve months.
Debt Obligations
Phathom Pharmaceuticals has several debt obligations, including:
- A long-term debt balance of $175 million.
- Revenue interest financing liability totaling $342.6 million as of September 30, 2024.
Market Performance
Phathom Pharmaceuticals' stock performance has been volatile, reflecting broader market trends and company-specific developments. The stock is currently trading at approximately $11.50, reflecting the outcomes of recent public offerings and market sentiment.
Phathom Pharmaceuticals, Inc. (PHAT) Mission Statement
Company Overview
Phathom Pharmaceuticals, Inc. is a biopharmaceutical company that focuses on developing and commercializing innovative therapies for gastrointestinal diseases. The company is dedicated to improving patient outcomes through its commitment to scientific excellence and patient-centric approaches.
Mission Statement
The mission of Phathom Pharmaceuticals is to develop and commercialize novel treatments for patients suffering from gastrointestinal diseases. The company aims to deliver innovative and effective therapies that address unmet medical needs, enhancing the quality of life for patients globally.
Core Values
- Innovation: Commitment to advancing science and research in gastrointestinal health.
- Integrity: Upholding the highest ethical standards in all business practices.
- Collaboration: Fostering partnerships with healthcare professionals and organizations to improve patient outcomes.
- Patient Focus: Prioritizing patient needs in every aspect of research, development, and commercialization.
2024 Strategic Goals
In 2024, Phathom Pharmaceuticals aims to:
- Expand the market presence of VOQUEZNA and its related products.
- Continue investment in research and development for additional gastrointestinal therapies.
- Enhance collaborations with healthcare providers and institutions to facilitate better patient access to therapies.
Financial Performance
As of September 30, 2024, Phathom Pharmaceuticals reported:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $16.4 million | $0 | $16.4 million |
| Cost of Revenue | $2.4 million | $0 | $2.4 million |
| Gross Profit | $13.996 million | $0 | $13.996 million |
| Research and Development Expenses | $8.7 million | $12.3 million | -$3.6 million |
| Selling, General and Administrative Expenses | $76.1 million | $23.4 million | +$52.7 million |
| Net Loss | -$85.6 million | -$43.2 million | -$42.4 million |
Market Position
Phathom Pharmaceuticals launched its VOQUEZNA products in the fourth quarter of 2023, generating a product revenue of $25.6 million for the nine months ended September 30, 2024. The company is focused on maintaining its competitive edge through continuous innovation and strategic partnerships.
Future Outlook
Phathom Pharmaceuticals anticipates ongoing investment in the development pipeline, with a focus on expanding its product offerings and improving market penetration. The company aims to address more gastrointestinal diseases, thereby broadening its impact on patient care.
Recent Developments
As of September 30, 2024, Phathom Pharmaceuticals reported cash and cash equivalents of $334.7 million, positioning the company well for future growth and operational needs.
How Phathom Pharmaceuticals, Inc. (PHAT) Works
Overview of Operations
Phathom Pharmaceuticals, Inc. is focused on developing and commercializing innovative treatments for gastrointestinal diseases. The company operates primarily in the United States and is known for its product VOQUEZNA, which contains the active ingredient vonoprazan. Launched in the fourth quarter of 2023, VOQUEZNA is designed for the treatment of Erosive Gastroesophageal Reflux Disease (GERD).
Financial Performance
As of September 30, 2024, Phathom reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $16.4 million | $0 | $16.4 million |
| Cost of Revenue | $2.4 million | $0 | $2.4 million |
| Gross Profit | $13.996 million | $0 | $13.996 million |
| Research and Development Expenses | $8.7 million | $12.3 million | ($3.6 million) |
| Selling, General and Administrative Expenses | $76.1 million | $23.4 million | $52.7 million |
| Total Operating Expenses | $84.8 million | $35.7 million | $49.1 million |
| Net Loss | ($85.6 million) | ($43.2 million) | ($42.4 million) |
Revenue Breakdown
For the nine months ended September 30, 2024, product revenues were $25.6 million, primarily from VOQUEZNA sales. The cost of revenue during this period was $4.2 million, resulting in a gross profit of $21.4 million.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, are detailed below:
| Expense Type | Amount |
|---|---|
| Research and Development | $25.5 million |
| Selling, General and Administrative | $214.0 million |
| Total Operating Expenses | $239.5 million |
Debt and Financing
Phathom has incurred significant debt, with the following details as of September 30, 2024:
| Debt Type | Amount |
|---|---|
| Loan Agreement Balance | $185.8 million |
| Accrued Interest | $1.5 million |
| Revenue Interest Financing Liability | $342.6 million |
Cash Position
As of September 30, 2024, Phathom had cash and cash equivalents totaling $334.7 million. This financial position is expected to support operations for at least the next twelve months.
Stockholder Equity
Phathom's stockholder equity as of September 30, 2024, is summarized below:
| Equity Component | Amount |
|---|---|
| Total Shares Outstanding | 68,323,938 |
| Accumulated Deficit | ($1,188.6 million) |
| Total Stockholders' Equity (Deficit) | ($187.1 million) |
Market Performance
Phathom's stock performance as of late 2024 reflects the company's operational and financial challenges, with an accumulated deficit of $1.2 billion. The company continues to rely on equity offerings and debt financing to support its operations and product development efforts.
Product Launch and Market Presence
As of October 25, 2024, Phathom has filled over 143,000 prescriptions for VOQUEZNA products, with more than 13,600 prescribers involved. The company has also secured commercial coverage for over 120 million lives in the U.S.
How Phathom Pharmaceuticals, Inc. (PHAT) Makes Money
Product Revenue
Phathom Pharmaceuticals generates revenue primarily through the sale of its product VOQUEZNA, which includes VOQUEZNA TRIPLE PAK and VOQUEZNA DUAL PAK. The company launched these products in the fourth quarter of 2023. For the three months ended September 30, 2024, the product revenue was $16.4 million, and for the nine months ended September 30, 2024, the product revenue reached $25.6 million.
| Period | Product Revenue (in millions) | Cost of Revenue (in millions) | Gross Profit (in millions) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $16.4 | $2.4 | $13.996 |
| Nine Months Ended September 30, 2024 | $25.6 | $4.2 | $21.430 |
Cost of Revenue
The cost of revenue for Phathom Pharmaceuticals was $2.4 million for the three months ended September 30, 2024, and $4.2 million for the nine months ended September 30, 2024.
Operating Expenses
Operating expenses are categorized into research and development (R&D) and selling, general, and administrative (SG&A) expenses. For the three months ended September 30, 2024, the total operating expenses were $84.8 million, which included:
- Research and Development: $8.7 million
- Selling, General and Administrative: $76.1 million
For the nine months ended September 30, 2024, total operating expenses were $239.5 million, with:
- Research and Development: $25.5 million
- Selling, General and Administrative: $214.0 million
Net Loss
Phathom Pharmaceuticals reported a net loss of $85.6 million for the three months ended September 30, 2024, and $259.9 million for the nine months ended September 30, 2024.
Interest Income and Expense
Interest income for the nine months ended September 30, 2024, was $11.6 million, while interest expense was $53.4 million, leading to total other expense of $41.8 million for the same period.
Liquidity and Capital Resources
As of September 30, 2024, Phathom Pharmaceuticals had cash and cash equivalents of $334.7 million. The company has continued to incur net losses and anticipates ongoing losses for the foreseeable future.
Revenue Interest Financing
Phathom entered into a Revenue Interest Financing Agreement, allowing it to receive up to $260 million in funding. This agreement stipulates a 10% royalty on net sales of products containing vonoprazan.
Future Projections and Sales Milestones
The company's revenue projections are subject to milestones that could modify the financial landscape significantly. The company must achieve specific sales milestones to avoid additional payment obligations.
Summary of Financial Performance
The following table summarizes the financial performance for Phathom Pharmaceuticals for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Product Revenue | $16.4 million | $0 | $25.6 million | $0 |
| Net Loss | $(85.6 million) | $(43.2 million) | $(259.9 million) | $(122.0 million) |
| Operating Expenses | $84.8 million | $35.7 million | $239.5 million | $97.4 million |
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Resources:
- Phathom Pharmaceuticals, Inc. (PHAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Phathom Pharmaceuticals, Inc. (PHAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Phathom Pharmaceuticals, Inc. (PHAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.