Phathom Pharmaceuticals, Inc. ((PHAT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Phathom Pharmaceuticals’ recent earnings call painted a picture of robust growth and strategic execution, with a strong focus on gastroenterology. The company reported significant revenue growth and a marked reduction in operating expenses and cash usage. While the overall sentiment was positive, potential challenges such as the temporary impact of sales force realignment and ongoing uncertainty in TRIPLE PAK supply were noted.
Significant Revenue Growth
Phathom Pharmaceuticals reported an impressive 25% revenue growth in Q3 2025, with net revenue reaching $49.5 million. This performance exceeded expectations and aligned with the company’s revenue guidance for the year, showcasing the effectiveness of its strategic initiatives.
Reduction in Operating Expenses
The company achieved a substantial reduction in operating expenses, cutting them by 43% quarter-over-quarter and nearly 50% since Q1 2025. This significant decrease contributed to a notable reduction in cash usage, highlighting Phathom’s efficient cost management.
Cash Usage Down
In Q3, Phathom’s cash usage was less than $15 million, representing a 77% reduction compared to Q2 2025. This achievement underscores the company’s commitment to financial prudence and operational efficiency.
Strong Prescription Growth
Phathom experienced a 36% growth in filled prescriptions since Q2, with a total of 221,000 prescriptions in Q3. This included 144,000 covered scripts and 77,000 cash prescriptions, indicating strong demand for the company’s offerings.
New Leadership Hires
The company strengthened its leadership team with the addition of Sanjeev Narula as the new Chief Financial and Business Officer and Nancy Phelan as the new SVP of Marketing and Analytics. Both bring significant experience, which is expected to drive further growth and innovation.
Potential Temporary Impact of Sales Force Realignment
Phathom’s realignment of sales territories to focus more on gastroenterology could have a temporary impact on Q4 performance. However, this strategic move is expected to enhance long-term growth prospects.
TRIPLE PAK Supply Uncertainty
There is ongoing uncertainty regarding the availability of the clarithromycin component in the TRIPLE PAKs. While no disruption has occurred yet, the situation remains a point of concern for the company.
Forward-Looking Guidance
Looking ahead, Phathom has narrowed its full-year revenue guidance to the top half of the previously communicated range, driven by its strong Q3 results. The company expects to maintain cash operating expenses below $55 million in Q4, even with the additional costs from the start of the EoE Phase II trial. Phathom aims for operating profitability in 2026 without requiring additional equity financing.
In summary, Phathom Pharmaceuticals’ earnings call highlighted a period of significant growth and strategic execution. The company demonstrated strong financial performance with increased revenue and reduced expenses, while also addressing potential challenges. With a clear focus on gastroenterology and strategic leadership hires, Phathom is well-positioned for future success.