Phathom Pharmaceuticals Reports Revenue Growth, Net Loss in Q3 2024, Amid Strategic Progress and Financial Challenges

Phathom Pharmaceuticals, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Phathom generated product revenue of $16.4 million, a notable increase from $0 in the same period in 2023, as the company launched its VOQUEZNA product line in Q4 2023. Gross profit for the quarter was $14.0 million, with total operating expenses reaching $84.8 million, leading to a net loss of $85.6 million, compared to a net loss of $43.2 million in Q3 2023. For the nine months ended September 30, 2024, total product revenue was $25.6 million, with a gross profit of $21.4 million. However, the company reported a net loss of $259.9 million, up from $122.0 million for the same period in 2023.

Phathom's total current assets decreased to $373.8 million as of September 30, 2024, from $397.4 million at the end of 2023, primarily due to a decline in cash and cash equivalents, which fell from $381.4 million to $334.7 million. Accounts receivable surged significantly from $1.6 million to $21.1 million, reflecting increased sales activity. Total current liabilities rose sharply from $38.8 million to $65.3 million, while long-term debt increased from $137.8 million to $175.7 million.

The company’s accumulated deficit expanded to $1.2 billion, up from $928.7 million at the end of 2023, and total stockholders’ deficit increased from $72.8 million to $187.1 million. Operating expenses for the nine months ended September 30, 2024, totaled $239.5 million, compared to $97.4 million in the prior year, driven by increased selling, general, and administrative expenses related to the commercialization of VOQUEZNA.

Strategically, Phathom has made significant progress with its product offerings, receiving multiple FDA approvals for VOQUEZNA and its variants throughout 2023 and 2024. The company initiated a commercial launch for VOQUEZNA in Q4 2023, which has contributed to its revenue growth. Additionally, Phathom raised approximately $121.8 million in net proceeds from an underwritten public offering in August 2024, further bolstering its financial position.

Despite these developments, the company continues to face challenges, including substantial operating losses and a reliance on external financing to support its operations and growth initiatives. The management remains focused on funding operations through equity offerings and potential collaborations while navigating the complexities of the pharmaceutical market.