Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT) Q1 2024 Earnings Call Transcript

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Martin Gilligan : Yes. So Annabel, there were a couple of questions there, but they all have a common thread in related. So I think I’m going to hit them all here, is there a case where demand might grow faster than payer coverage? That’s an interesting question. I think we’ve seen steady growth, and that’s what we feel good about. Our demand, is it steadily growing. So I think you’ll continue to see that. And we’re far along in negotiations with the other major payers, which will be continuing through Q2 and Q3. So I don’t think that’s going to be the case. I think we’re going to have coverage come on board as we see growth in prescriptions. And I think the next part of that would we see an increase in cash Blink coverage scripts before we saw a decrease.

I’m not prepared to say that, that’s correct or incorrect, but it’s not what we’re expecting. I think you saw a big change from our last earnings call where we had that 1:1 versus 60%-40%. So our anticipation is that will continue to decline. And then will we continue Blink? I mean, we’ll always look to do the right things for patients. There will probably always be some level of coverage that doesn’t exist and we want to make sure that we do the right things for patients. So we’ll always be in there. And then in terms of, I think, one of your other questions was steady state for coverage. I think we’re going to see it continue to grow, as I just said a moment ago, between going into Q2, which we’re in and you’ve already seen it. So we’ve kind of kept that statement that we made in the last earnings call that we expected to see more growth in Q2 and Q3.

So we’ve already had our first step in Q2, where we believe there’s more to come in Q2 and Q3.

Operator: Our next question comes from Matthew Caufield of H.C. Wainright.

Matthew Caufield : So for the launch, is there any granularity that you can share at this stage between the prescriptions coming from GI or primary care? And do you anticipate one or the other being a greater target or a contributor for growth?

Martin Gilligan : So — I’m sorry did you finish?

Matthew Caufield : Yes.

Martin Gilligan : Okay. I’m sorry. I thought I cut you off. Just wanted to make sure. Yes. So right now, we’re seeing — not to our surprise, that the percentage of scripts are leaning heavier towards GI. So what’s the rationale for that? I know we’ve spoken in the past that when we set our sales force out, their objective was to start at the higher deciles, which would be the higher volume position. So really starting on those decile tens and working down to 9, 8, et cetera. And that’s where you see the imbalance between the GIs being the higher decile and the primary care being lower. So yes, so right now, at this point, we’re seeing a higher slant towards gastroenterologists, but we’re actually seeing primary care come on board. So it’s playing out exactly as we thought it would.

Matthew Caufield : Very helpful. And then maybe if I could just ask one more quick question. In regards to the current fill rate, do you know how that kind of stacks up against something like a more established PPI. Presumably not all the PPI prescriptions are getting filled either. But just curious how that could compare possibly.

Martin Gilligan : Yes. So I think that’s a hard comparison. I think when you’re looking at something that’s a generic product that’s been around for 30-some-odd years and is also OTC. I think a better way to look at it is, our fill rate as it compares to a launch product and where we are. And what you heard today was a rate we have of 41%. And we know, looking at other launches that not only is that consistent, but it’s actually in a really good position right now at our place at launch. So — and a lot of it that’s kind of driving in terms of the coverage we have right now has come on board as we announced today with Cigna. And that fill rate will only go up moving forward.

Operator: Thank you. This concludes the question-and-answer session. Thank you for participating in today’s conference. This does conclude the program, and you may now disconnect.

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