On this page of StockholderLetter.com we present the latest annual shareholder letter from Phathom Pharmaceuticals, Inc. — ticker symbol PHAT. Reading current and past PHAT letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2026 Letter Continued (Full PDF)
 •  4/13/2023 PHAT Stockholder Letter
 •  4/12/2024 PHAT Stockholder Letter
 •  4/23/2025 PHAT Stockholder Letter
 •  More "Drugs & Pharmaceuticals" Category Stockholder Letters
 •  PHAT Benford's Law Stock Score = 90

PHAT Shareholder/Stockholder Letter Transcript:

CHANGING THE LANDSCAPE IN GI
Annual
Report
2025

OUR MISSION IS TO
ADVANCE GI CARE AND
IMPROVE PATIENTS    LIVES
We are committed to developing and
delivering innovative therapies that
address unmet needs in gastrointestinal
(GI) diseases.
Our team is working to usher in a new era
of treatment to reshape the GI landscape,
guided by a vision to improve care and
help patients live healthier lives.
Cover:
Erin, treated for Erosive
Gastroesophageal Re   ux Disease
(GERD)
Carson, treated for Non-Erosive
GERD
Kevin, treated for Erosive GERD
LaDawn, treated for H. pylori
infection
Inside Cover:
Carson, treated for Non-Erosive
GERD
Judy, treated for Non-Erosive
GERD
Erin, treated for Erosive GERD, and
her partner

A Note from Phathom   s President & CEO
To Our Stockholders,
2025 was a pivotal year for Phathom Pharmaceuticals as we sharpened our focus on becoming a leader in
gastroenterology (GI) and repositioned the company with what we believe is a clear path to pro   tability.
I joined Phathom in April 2025 because it was clear the company had an extraordinary opportunity.
VOQUEZNA   (vonoprazan) expands the range of treatment options for patients with GERD, a condition
that remains challenging for many. We are energized by the potential to address ongoing unmet needs in
this large patient population. To fully capture this opportunity, we needed to better align our spending and
refocus our commercial strategy.
We took deliberate steps to focus our efforts on gastroenterologists who typically treat patients with more
persistent GERD symptoms, while also reducing expenses and working to stabilize our    nancial position. To
support this shift, we realigned Phathom   s sales team to enable them to spend signi   cantly more time with
gastroenterologists and associated physician assistants and nurse practitioners. This targeted focus on GI
providers, who have a high concentration of patients who may bene   t from VOQUEZNA, contributed to
strong sales growth in 2025 while reducing quarterly cash operating expenses by nearly 50%.
In 2025, Phathom generated $175.1 million in net revenue, representing 217% year-over-year growth, and
surpassed one million total VOQUEZNA prescriptions    lled since launch. We believe we have set the
company on a path to continue growing revenue and reach operating pro   tability.
Building on the strengthened operating performance of our business, we also recently improved the
capital structure and    nancial stability of Phathom. In January 2026, we raised additional capital through a
successful equity offering, and in February we modi   ed our term debt to lower our interest costs, reduce
the remaining principal and extend the maturity date.
Our GI-focused commercial strategy has been a key driver of performance this past year.
Gastroenterologists and their care teams represented the core engine of our commercial growth in 2025,
and we believe, will continue to do so for several years. These healthcare providers collectively write
approximately 20 million prescriptions each year for proton pump inhibitors (PPIs) and accounted for
more than 70% of VOQUEZNA prescriptions in 2025. As positive physician and patient experience with
VOQUEZNA continues to expand, we believe we will capture a growing share of the GERD market.
Over time, we believe we have the opportunity to reach $1 billion in annual net revenue from prescriptions
through gastroenterologists and associated providers, which would represent conversion of a meaningful
portion of PPI prescriptions within this segment. Some high-volume prescribers have already demonstrated
meaningful utilization in their clinical practice, and we are working to broaden and deepen adoption of
VOQUEZNA for GERD across the gastroenterology community.
As we increase adoption among gastroenterologists, we believe this may also support growth in
prescriptions from primary care physicians (PCPs). Patients with persistent or worsening GERD symptoms
are often referred to gastroenterologists after initial management by their primary care physician. As
experience with VOQUEZNA in GERD expands in GI care, PCPs may become increasingly familiar with its
use through the ongoing management of these patients, supporting the potential for broader adoption
among PCPs over time.

Importantly, in 2025, the FDA updated the Orange Book for VOQUEZNA tablets to re   ect regulatory
exclusivity through May 2032, supporting our con   dence in a multi-year opportunity to grow VOQUEZNA
revenue.
We may also have the potential to extend exclusivity by an additional six months, subject to the outcome
of our pHalcon-EoE-201 clinical trial, a Phase 2 study evaluating VOQUEZNA in eosinophilic esophagitis
(EoE). Any such extension would depend on the results of the Phase 2 study, our decision to advance
development, including initiating and completing a subsequent Phase 3 trial, and receipt of a written
request from the FDA to include pediatric patients in the Phase 3 trial.
Looking ahead, our ambition extends beyond VOQUEZNA. Our vision is to build Phathom into a leading GIfocused company that develops and commercializes innovative therapies that address meaningful unmet
needs in gastroenterology. As we deepen relationships within the GI community, we believe we are well
positioned to pursue opportunities that complement our GI-focused capabilities.
Our success in 2025 is due to the exceptional focus, resilience, and commitment of our entire Phathom
team, and to their dedication to help patients and physicians. We are grateful to the physicians who
prescribe VOQUEZNA as part of their care for patients and to the patients whose experiences inspire our
work.
Finally, I want to thank our shareholders for your continued con   dence and support. Phathom enters 2026
with strong commercial momentum, a solid    nancial position, and a clear strategy to drive towards long
term value creation. We believe we are still in the early stages of realizing the full potential of VOQUEZNA
and the broader opportunity ahead for our company.
We look forward to continuing
continu
this journey together.
Steven Basta
President & Chief Executive Officer
Forward-Looking Statements: This letter contains forward-looking statements. Actual results may differ materially from those
described. For more information, see the    Risk Factors    section in our 2025 Form 10-K.

4/7/2026 Letter Continued (Full PDF)

 

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