Phathom Pharmaceuticals Lifts Full-Year Guidance as VOQUEZNA Scripts and Profitability Prospects Accelerate
Prescription Growth and Revenue Upside Highlight Strong Quarter
Phathom Pharmaceuticals reported third quarter 2025 results showing robust commercial progress for VOQUEZNA, its lead GI treatment, and raising its revenue outlook for the year. More than 790,000 total VOQUEZNA prescriptions have now been filled, with 221,000 in the most recent quarter—a 28% sequential increase that demonstrates building physician and patient adoption. This strong demand pushed Q3 net revenues up to $49.5 million, a 25% rise quarter-over-quarter.
Full-year revenue guidance was increased to $170-$175 million, reinforcing confidence in the current commercial momentum and execution strategy. Importantly, Phathom also tightened expense controls, with operating expenses dropping 43% compared to the previous quarter and a net cash usage improvement of 77%—positioning the company to potentially reach operating profitability in 2026 without the need for additional equity raises.
Efficiency Gains Support Profitability Outlook
Phathom’s Q3 saw sharp reductions in both research and development and SG&A (selling, general, and administrative) expenses. This was achieved through less direct-to-consumer promotional spend, a focus on core sales efforts, and headcount optimization. Non-GAAP operating expenses dropped below $50 million, and Q4 is forecast to stay below $55 million.
| Key Financials (in $000s) | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| Product Revenue, Net | 49,504 | 39,606 | 16,352 |
| R&D Expense | 7,027 | 7,500* | 8,693 |
| SG&A Expense | 51,558 | 76,099* | 76,099 |
| Total Operating Expense | 58,585 | 94,400 | 84,792 |
| Net Loss (GAAP) | (29,973) | (64,794)* | (85,577) |
| Non-GAAP Adjusted Net Loss | (11,152) | (24,684)* | (67,850) |
| Cash & Cash Equivalents | 135,156 | 149,156* | 297,263 (YE 2024) |
*Estimate or interpolated from prior disclosure, as direct Q2 data was not stated in the release.
Strategic Initiatives Drive Market Share
Behind these numbers, the company completed a national realignment of its salesforce to sharpen its focus on gastroenterologists—the primary prescribers in VOQUEZNA’s markets. Covered prescription rates now exceed 80% of U.S. commercial lives, a strong platform for further penetration.
Pipeline news also contributed to sentiment: a new Phase 2 study for Eosinophilic Esophagitis began enrolling patients, and Phase 3 data for Non-Erosive Reflux Disease was recently published, underscoring ongoing clinical progress and differentiation of VOQUEZNA.
Balance Sheet Supports Growth Plan
As of September 30, 2025, Phathom held $135.2 million in cash and cash equivalents. The company’s significant reduction in net cash usage—$14 million for the quarter versus $63 million in Q2—means its cash reserves are expected to last through the push toward profitability, assuming revenue trends continue.
| Balance Sheet ($000s) | Sep 30, 2025 | Dec 31, 2024 |
|---|---|---|
| Cash and Cash Equivalents | 135,156 | 297,263 |
| Total Assets | 240,289 | 378,318 |
| Total Liabilities | 662,823 | 631,898 |
| Stockholders’ Deficit | (422,534) | (253,580) |
Outlook: VOQUEZNA Momentum and Operational Discipline Remain in Focus
Looking ahead, management’s updated revenue guidance and continued emphasis on operating discipline suggest further progress toward its profitability goal in 2026. Patent exclusivity for VOQUEZNA is expected to extend through 2032, with generic competition unlikely before 2033—giving the company a wide runway for growth. Recent leadership additions, commercial and R&D execution, and a robust balance sheet all reinforce Phathom’s confidence in its GI strategy.
Key Takeaway for Investors: The trajectory for VOQUEZNA is upward, supported by strong prescription trends and cost controls. The focus for the coming quarters will be continued growth in GI market share and executing on new indications, while keeping a close watch on margins and cash flow. As the company heads into 2026, its transition from high cash usage toward self-sustaining profitability is clearly in motion—and worth following closely for anyone watching the specialty pharmaceuticals sector.
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