Phathom Pharmaceuticals, Inc.

Hello, and welcome to the Fathom Pharmaceuticals third quarter 2024 earnings results call. At this time, all participants are in listen-only mode. After the presentation, there will be a question and answer session. If you would like to ask a question at this time, please press star 1-1 on your telephone keypad. Please be advised that today's call is being recorded. With that, I would like to turn the conference over to Eric Chiarelli, Fathom's head of investor relations. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us this morning to discuss FADM's third 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. Azmin Abusi, 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 presentation 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 balance 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 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 Terry 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. I'm excited to provide an update on Fathom's recent progress. Successful commercial launch of the QESA remains our top priority, and I'm pleased to share that we're seeing growing interest from physicians and patients, as well as increased coverage from payers. Week over week and month over month, important key performance indicators have trended positively with respect to prescription data, market sentiment and patient access. These outcomes inspire confidence that our launch strategies have been impactful. As we continue our launch journey, I'm confident that our teams are positioned appropriately to deliver on the Quesna's sizeable market opportunity. The third quarter of 2024 was momentous for Fathom and the Quesna. We achieved several important milestones which advanced our commercial launch and strengthened our balance sheet to enable continued investment in our business. On the commercial front, we secured FDA approval for Viquevna as a treatment for non-erosive GERD and greatly expanded commercial access, which has now surpassed 80% of lives covered. On the financial side, we leveraged these achievements to successfully raise gross proceeds of $130 million in an equity follow-on, which we view as evidence that the capital markets have confidence in the opportunity that lies ahead. In July, the Quesna was approved for the relief of heartburn associated with non-erosive GERD in adults. As the largest subcategory of GERD, this label expansion greatly increased the Quesna's addressable market to roughly 22 million US adults. And since the non-erosive GERD market dynamics are nearly identical to those of erosive GERD, our teams have been able to quickly leverage the sales and marketing plans we already had in place for our roast of GERD launch. The feedback so far has been tremendous. Ultimately, with both major GERD indications now approved, we believe the Quesna can be a game changer with its rapid onset of action and durability of effect, providing relief to millions of patients who are dissatisfied with their existing treatment options. In parallel, we have also made important progress on enhancing Viquezna's commercial coverage in the third quarter. Late in July, we announced the addition of Viquezna to CVS Caremark National Formularies, the largest of the country's three major pharmacy benefits managers. Between this important accomplishment and several other formulary placements, over an estimated 120 million commercially insured lives now have access to Viquezna. And for the majority of those lives, we successfully secured coverage subject to a single step through a generic TPI prescription. One of our launch goals has always been to ensure the Quesna is widely accessible and affordable to commercial patients. We feel we've done a good job in advancing this effort, and we are both proud of the quantity and quality of the coverage we have earned. In the months to come, we believe our commercial access will serve as a tailwind, increasing utilization across both GERD indications. In fact, the effects of securing both non-erosive approval and broader commercial coverage are already having a positive impact on our results. We believe our third quarter 2024 launch data are impressive, highlighted by increasing the Quesna volume. In less than a year since launch, over 143,000 prescriptions have already been filled by patients. We believe the growth trajectory of this metric validates the unmet need in the market, and serves as evidence that we are elevating brand awareness. With the fourth quarter underway, our goal is to improve on this momentum, expanding the number of the Quesna's prescribers and the number of the Quesna scripts ultimately being filled by patients. Outside the quantitative data, I continue to be impressed by the recognition that Quesna has earned in the marketplace. In addition to the many patient and physician testimonials we receive on a weekly basis, the Quesna has recently won multiple industry awards, touting its innovation. Media coverage for the Quesna has also increased sharply, especially following our approval for non-erosive GERD. And on the medical front, our team recently attended the American College of Gastroenterology Conference, where it was clear that the GI community and attending physicians continue to be excited by having Viquesna as a new option in their toolkit. Across these various sources of feedback, what I find most noteworthy is the consistency of the sentiment. Physicians, patients, care premium lenders all describing a positive experience with Viquesna or reinforcing its potential to disrupt the PPI market. Turning now to our pipeline. we've begun reviewing the Quesna's early real-world non-erosive GERD data to understand consumer usage patterns and physician prescribing habits. Although additional data are needed, we believe these insights will help assess the value and potential timing of advancing a phase three program to validate the as-need dosing of the Quesna for active heartburn episodes. Separately, we're in the final stages of obtaining FDA alignments on a phase two program investigating the Kresna as a potential treatment of the eosinophilic esophagitis, or EOE, which we now plan to initiate in the first half of 2025. On the financial side, Mully will further detail our third quarter 2024 results, for which we reported net revenues of $16.4 million and ended with $335 million in cash. We remain confident that our strength and balance sheet will enable us to continue delivering on our business strategies. I'm very happy with today's results. We believe our accomplishments in the third quarter were key steps in allowing Fathom to recognise the Quezma's full market opportunity. Our vision has always been focused on successfully executing our commercial strategy, and I believe we're making terrific progress. we have appropriately invested in our people, technology, and data to enable us to best understand and predict marketing levers that help drive growth. With recent approvals secured, commercial coverage expanded, and continued brand investment, I'm confident we can achieve the blockbuster opportunity we believe is possible for the Kresna. I'll now turn the call over to Martin to provide further details on our recent commercial updates.