Phathom Pharmaceuticals, Inc.

Hello, and welcome to the Phantom Pharmaceuticals second quarter 2024 earnings results call. At this time, all participants are on a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automatic message advising your hand is raised. Please be advised that today's conference is being recorded. With that, I would like to turn the conference over to Eric Chiarelli, Phantom's Head of Risk Relations. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us this morning to discuss Fathom's second quarter 2024 results. This morning's presentation will include remarks from Terry Curran, our president and CEO, Martin Gilligan, our chief commercial officer, and Molly Henderson, our chief financial officer. Azmi Nabulsi, our chief operating officer, will also be joining the team during the Q&A portion of today's call. Just a couple of logistical items before we get started. Earlier this morning, we issued a press release detailing the results we will be discussing during the call. A copy of that press release can be found under the News Releases section of our corporate website. Further, the recording of today's webcast can be found under the Events and Presentations section of our corporate website. Before we begin, let me remind you that we will be making a number of forward-looking statements throughout today's presentation. These forward-looking statements involve risks and uncertainties, many of which are beyond FASM's control. Actual results can materially differ from the forward-looking statements, and any such risks can materially adversely affect the business, the results of operations, and the trading prices for Fathom's common stock. A discussion of these statements and risk factors is available on the current Safe Harbor slide, as well as in the risk factors section of our most recent Form 10-K and subsequent SEC filings. All forward-looking statements made on this call are based on the beliefs of Fathom as of this date, and Fathom disclaims any obligation to update these statements. With that, I will now turn the call over to Terri Curran, Fathom's President and CEO, to kick us off. Terri?

Thank you, Eric, and thank you to all those joining us on today's call. Fathom was founded on vision and a set of goals that, from the start, many considered lofty. But over the last five years, we've checked one box after another. We've demonstrated differentiation versus a 30-year-old standard of care earned approvals for broad labels, launched multiple products spanning three indications, and secured favorable commercial coverage in a genericized market. To date, we've accomplished exactly what we set out to do. So whether you're new to the story or have followed us since the start, I encourage you to reflect on our track record as it sets the stage for how we intend to continue delivering on our goals for Vuketna. Today, I'm excited to report specifically on the great progress we made during the second quarter of 2024. The team has been focused on executing our commercial launch strategies with physicians, patients, and payers. In only our second full quarter following launch, we believe the results of these efforts have been impressive and demonstrate strong momentum as we enter the back half of 2024. Before diving into our latest launch metrics, I'd like to provide an update on two major developments, the Quesna's approval for non-erosive GERD and our expanded commercial coverage. As we announced on July 18, the FDA approved the Quesna for the relief of heartburn associated with non-erosive GERD in adults. We're extremely pleased with the strength of the label, which highlighted the Quesna's rapid onset of action and durability of effect. This outcome was a key milestone in our commercialization journey, expanding the total addressable market for the kwisna. GERD conditions impact about 65 million US adults annually, with about 22 million being diagnosed and treated with a prescription medication. Non-erosive GERD alone is responsible for over two-thirds of this population. This impressively large market has demonstrated the need for an alternative treatment option, given the high degree of patient dissatisfaction and inadequate symptom relief. Building upon our previous approval for erosive GERD, this third and largest indication allows Equisner to be considered as a treatment option for all patients suffering from GERD or H. pylori. In anticipation of the Purdue for Action Day, Our existing sales force was pre-trained and prepared to begin promotion in the field immediately upon approval. It is important to note that the non-erosive GERD patient journey and target prescriber base mirrors that of erosive GERD, which allows us to leverage our existing promotional efforts. In fact, over the past two weeks, we've already seen a notable increase in demand for 10 milligram tablets, which is the approved dose for non-erosive GERD. Moreover, we believe the commercial access we have secured thus far also applies to non-erosive GERD patients who are prescribed the Quesna bottles. Given the overlapping commercial dynamics across GERD conditions, our strategy has always been to hit the ground running. With this approval, the Quesna has now cleared another hurdle and is poised to recognize the full GERD market opportunity as we work towards our goal of displacing PPIs. Our recent expansion of commercial coverage will be a key driver in achieving that goal. After announcing our placement on Cigna formularies midway through Q2, we recently announced the addition of the QSNA to CVS Caremark's national formularies. As the country's largest pharmacy benefit manager, responsible for over 26 million commercial lives, this was a major development in ensuring widespread coverage for the QSNA. And later in this call, Martin will provide an update on several other key payers for which we've recently secured formery placement. Our efforts have resulted in an estimated $116 million commercially insured lives now having access to the QSNA. Importantly, across the majority of this coverage, we were successful in securing position on formeries in line with our single step strategy through a generic PPI prescription. We're extremely pleased with this broad commercial coverage we've achieved for the QISNA while still in the early stages of launch. One of the most impressive examples of our launch success has been the evolution of the QISNA volume. I'm pleased to share that launch to date, total demand has now surpassed 122,000 scripts written, of which over 60,000 have been filled by patients. We're remaining energized by these metrics and believe their growth trajectories are a testament to increasing interest from prescribers and expanded availability for patients. Over the last few months, we've continued to see extraordinary testimonials pour in from these physicians and patients alike. Almost daily, we receive positive feedback telling us how Sequesnet is relieving symptoms quickly and improving lives. Pictures of healed erosion, stories of sleeping through the night for the first time in years, And overall quality of life improvements are just some of the anecdotes that have made us proud to be able to offer this first-in-class treatment option to patients suffering from acid-related conditions. And with non-erosive now approved, we're thrilled by the opportunity to provide these benefits to millions more patients in need. In parallel with launch, we continue to explore development opportunities for Vukizna. We're planning to initiate two clinical programs, a Phase III trial for as-needed dosing in non-erosive GERD, and a Phase II trial in eosinophilic esophagitis, or EOE. Both programs aim to leverage the rapid, potent, and durable acid suppression profile of the Quesna. If these programs lead to FDA approvals, we believe these indications will continue to expand that total addressable market and further differentiate the Quesna from PPIs, which are not approved for either indication. On the financial side, Molly will further detail our second quarter 2024 results later in the call for which we reported revenues of $7.3 million and ended with $276 million in cash. We remain confident that our strong balance sheet will enable us to continue delivering on our launch and development strategies. After two full quarters on the market, the Quesna's commercialization journey has progressed extremely well. Each quarter we build upon our previous successes, bringing us closer to achieving the blockbuster opportunity we believe is possible for the Quesna. Today's results are evidence of our preparedness and commitment to delivering critical milestones in a short period of time. We've unlocked the largest segment of the GERD market and enhanced access for millions of patients. I'm looking forward to continuing this journey and seeing Vaquesna's position grow in the marketplace. I'll now turn the call over to Martin to dive deeper into recent commercial updates. Martin.