Phathom forecasts $165M–$175M 2025 revenue as GI sales drive VOQUEZNA growth

Strategic Shift and Financial Growth in Q2 2025

Phathom Pharmaceuticals (PHAT) delivered a strong performance in the second quarter of 2025, marking a significant turning point for the company. The focus has shifted from expanding the number of prescribers to deepening engagement with existing ones, particularly gastroenterologists. This strategic pivot is expected to drive more consistent prescription growth and enhance brand loyalty.

CEO Steven L. Basta highlighted that the company filled 173,000 prescriptions for VOQUEZNA during the quarter, reflecting a 36% increase compared to the first quarter. He emphasized that the new sales strategy aims to build stronger relationships with gastroenterologists, who are key prescribers for the drug. To support this, the company has refreshed its sales force target list, removing over 20,000 primary care physician targets who had not yet started prescribing the medication.

The FDA has granted Phathom exclusivity for VOQUEZNA 10-mg and 20-mg tablets until May 2032. CEO Basta noted that the entry of generic competitors is unlikely before 2033, assuming a standard ANDA review cycle. This exclusivity provides a competitive edge and supports the company's long-term growth plans.

Financial Performance and Future Outlook

In terms of financial results, Phathom reported net revenues of $39.5 million for Q2 2025, a 39% increase from the previous quarter. The company ended the quarter with approximately $150 million in cash, which is expected to be sufficient to reach profitability without requiring additional equity financing.

The company provided full-year 2025 revenue guidance of $165 million to $175 million, indicating confidence in its growth trajectory. Additionally, Phathom announced the initiation of a Phase II trial for eosinophilic esophagitis (EoE), which is expected to begin in the fourth quarter of 2025. This expansion into new therapeutic areas underscores the company’s commitment to innovation and long-term value creation.

Robert Breedlove, VP of Finance & Principal Accounting Officer, emphasized that the revenue growth was driven by increased adoption of VOQUEZNA, highlighting the success of the company’s commercial efforts. The company also lowered its non-GAAP operating expense guidance for 2025 to $290 million to $305 million, reflecting cost-saving measures and improved operational efficiency.

Cost Controls and Operational Efficiency

Non-GAAP operating expenses for Q2 were $86.1 million, a decrease of $12 million from Q1 2025. This reduction was primarily due to $18 million in savings, partially offset by $6 million in restructuring-related costs. The company reported a non-GAAP adjusted net loss of $56.5 million or ($0.79) per share for the quarter. Despite the loss, the company remains focused on achieving profitability in 2026 through disciplined cost management and strategic investments.

CEO Basta noted that the biggest cost savings came from eliminating the direct-to-consumer promotional program. The company expects the 2026 operating expense run rate to be slightly higher than the current $55 million, but still within manageable limits. This approach reflects a balance between maintaining financial discipline and investing in growth opportunities.

Analyst Engagement and Market Sentiment

Analysts expressed a positive outlook during the earnings call, congratulating management on the quarter’s performance and seeking clarity on growth drivers and cost savings. There was particular interest in the sustainability of cost cuts and the timeline for revenue acceleration. Management maintained a confident and disciplined tone, emphasizing execution, financial prudence, and a clear path to profitability.

Compared to the previous quarter, both analysts and management showed increased optimism. While Q1 discussions focused on exclusivity resolution and DTC pullback, Q2 questions centered on the impact of the new sales strategy, potential revenue acceleration, and the effect of cost reductions. The shift in focus reflects the company’s progress in stabilizing operations and positioning itself for long-term success.

Risks and Challenges

Despite the positive momentum, management acknowledged ongoing challenges, including supply issues with the VOQUEZNA triple pack, which accounts for approximately 1% of total revenue. The company stated it is prepared to shift its H. pylori marketing emphasis to the dual pack if needed. Additionally, the company relies on successful execution of the new sales strategy and maintaining cost discipline to achieve profitability.

Analysts raised concerns about the timing of revenue growth from the new GI-focused approach and the long-term impact of reduced DTC spending. However, the company remains committed to its strategic vision and continues to invest in research and development to expand its product portfolio.

Final Thoughts

Phathom Pharmaceuticals’ Q2 2025 results reflect a strong strategic shift towards deeper engagement with gastroenterologists and a focus on sustainable growth. With exclusivity confirmed through 2033, rigorous cost controls in place, and a raised full-year revenue outlook, the company is well-positioned to achieve profitability in 2026 without further equity financing. The renewed approach and clear execution roadmap position Phathom for durable growth and value creation in the gastrointestinal space.