-- Over 1.1 million total VOQUEZNA$(R)$ prescriptions filled to date -- $57.6 million in Q4 net revenues; $175.1 million in FY 2025 net revenues, a 217% increase from FY 2024 -- Q4 operating expenses of $55.9 million; non-GAAP operating expenses of $50.3 million and net cash usage of approximately $5.2 million, reflecting continued expense discipline -- Strengthened financial position through $130 million equity offering and modification of term debt -- Providing FY 2026 guidance; operating profitability expected beginning in Q3 2026 and for FY 2026 -- Management to host conference call today, February 26, 2026, at 8:00 a.m. EST
FLORHAM PARK, N.J., Feb. 26, 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 fourth quarter and full year ended December 31, 2025, and provided 2026 financial guidance.
"We are pleased with our continued growth throughout 2025, leveraging the efficiency of our GI-focused strategy," said Steven Basta, President and Chief Executive Officer of Phathom. "Revenue increased significantly over the last three quarters. In the fourth quarter, we realigned our sales organization and enter 2026 with a stronger sales team and marketing initiatives designed to deepen engagement and increase prescribing for GERD across gastroenterologists."
"Phathom exited 2025 with strong revenue growth and meaningful progress on expense discipline initiatives," said Sanjeev Narula, Chief Financial and Business Officer of Phathom. "Following our January financing, we negotiated a modification to our term loan to reduce interest and extend maturity. We believe these steps provide us with an enhanced capital structure and financial flexibility as we position Phathom for anticipated operating profitability beginning in the third quarter 2026. We are executing with discipline to drive revenue growth and anticipate reaching cash flow positivity in 2027."
Recent Business Highlights and Fourth Quarter and Full Year 2025 Results
VOQUEZNA Commercial Progress:
-- Phathom completed its sales force realignment in the fourth quarter.
Phathom's sales force is currently at >95% strength, having filled most
of the open sales positions in recent weeks.
-- In the fourth quarter, Phathom recruited new marketing leadership and
aligned marketing messages and activities to support the sales focus on
writer depth and frequency among gastroenterologists.
-- More than 1.1 million total VOQUEZNA prescriptions have been filled as of
February 13, 2026.
-- Approximately 273,000 VOQUEZNA prescriptions were filled in the fourth
quarter, a 24% increase quarter over quarter. Covered prescriptions grew
21% during the fourth quarter and continue to be the primary driver of
revenue.
EoE Clinical Trial Update:
-- The Phase 2 pHalcon-EoE-201 trial evaluating VOQUEZNA in patients with
Eosinophilic Esophagitis (EoE) is actively enrolling as planned. Topline
results are anticipated in 2027.
Strengthened Capital Structure and Financial Update:
-- In January 2026, Phathom completed an underwritten public offering of
common stock and pre-funded warrants, resulting in gross proceeds of
approximately $130 million and $122.2 million in net proceeds.
-- In February 2026, the Company modified the terms of its outstanding term
debt facility, reducing overall debt outstanding, lowering its interest
rate, and extending the maturity date to February 2029 with partial
repayment beginning in 2028. Phathom reduced the remaining principal to
$175 million outstanding and paid certain end-of-term fees and accrued
paid-in-kind amounts under the original agreement.
-- As a result of the Company's enhanced capital structure, including
approximately $190 million of cash on hand following the term loan
modification, Phathom believes it has sufficient resources, together with
anticipated future cash flow from operations, to satisfy all liquidity
covenants and repayment obligations associated with its term loan and
revenue interest financing agreement (RIFA). Modification of the term
debt facility extended the repayment obligation. RIFA cash hold covenants
begin in October 2026 and adjust over time based on formulas related to
royalty amounts paid to date. The Company anticipates that the highest
cash hold obligation during 2026 will be approximately $120 million.
Phathom expects to maintain cash balances above this level throughout
2026. Additional details are provided in the Company's Annual Report on
Form 10-K.
Fourth Quarter and Full Year 2025 Financial Results:
-- Revenue: Net revenues for the fourth quarter 2025 were $57.6 million, an
increase of $27.9 million compared to $29.7 million for the fourth
quarter 2024. Net revenues for the full year 2025 were $175.1 million, an
increase of $119.8 million compared to $55.3 million in 2024.
-- Research and development (R&D) expenses: R&D expenses for the fourth
quarter 2025 were $7.5 million, a decrease of $1.1 million compared to
$8.6 million for fourth quarter 2024. R&D expenses for the full year 2025
were $32.8 million, a decrease of $1.3 million compared to $34.1 million
in 2024.
-- Selling, general and administrative (SG&A) expenses: SG&A expenses for
the fourth quarter 2025 were $48.4 million, a decrease of $28.3 million
compared to $76.7 million for fourth quarter 2024. SG&A expenses for the
full year 2025 were $279.7 million, a decrease of $11.0 million compared
to $290.7 million in 2024. The decrease was primarily due to a reduction
in commercial-related promotional expenses, personnel-related expenses,
and third-party spend.
-- Operating expenses: Operating expenses for the fourth quarter 2025 were
$55.9 million, compared to $85.3 million for the fourth quarter 2024 and
$58.6 million during the third quarter 2025. The sequential decrease
compared to the third quarter 2025 was attributable to cost savings
associated with lower commercial promotional spend, lower
personnel-related expenses, and lower third-party spend. Fourth quarter
2025 operating expense included a non-cash charge related to stock-based
compensation of $5.6 million compared to $6.7 million for the fourth
quarter 2024 and $9.3 million for the third quarter 2025. Non-GAAP
operating expenses, which exclude stock-based compensation charges, for
the fourth quarter 2025 were $50.3 million, compared to $78.6 million for
the fourth quarter 2024 and $49.3 million during the third quarter 2025.
Operating expenses for the full year ended 2025 were $312.5 million, compared to $324.7 million for the full year ended 2024. For the year ended 2025, operating expense included a non-cash charge related to stock-based compensation of $28.7 million compared to $24.0 million for the full year ended 2024. Non-GAAP operating expenses, which exclude stock-based compensation charges, for the full year ended 2025 were $283.8 million, compared to $300.7 million for the full year ended 2024.
-- Net loss: Net loss for the fourth quarter 2025 was $21.1 million,
compared to $74.5 million for the fourth quarter 2024. Non-GAAP adjusted
net loss for the fourth quarter 2025 was $5.7 million compared to $56.4
million for the same period in 2024. Net loss for the year ended 2025 was
$221.2 million, compared to $334.3 million for the full year ended 2024.
Non-GAAP adjusted net loss for the year ended 2025 was $150.5 million
compared to $262.3 million for the year ended 2024. 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 December 31, 2025, cash and cash
equivalents were $130.0 million. Net cash usage was approximately $5.2
million in the fourth quarter of 2025, representing a 64% improvement
from net cash usage of approximately $14.0 million in the third quarter
of 2025. Based on its current operating plan and projected product
revenues, and the $122.2 million of net proceeds from the January 2026
offering, the Company believes these resources will be sufficient to fund
operations and achieve operating profitability beginning in the third
quarter 2026, excluding non-cash stock-based compensation.
2026 Financial Guidance
-- For the full year 2026, Phathom is providing the following financial
guidance:
-- Net revenues of $320--$345 million, which includes approximately
$17--$20 million as result of the classification change described
in the Explanatory Note below
-- Gross- to-net of 55--59%
-- Gross margin of approximately 80%
-- Non-GAAP operating expenses, excluding stock-based compensation,
of $235--$250 million
-- Operating profitability, excluding stock-based compensation,
expected beginning in the third quarter 2026 and for the full year
2026
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