Retail Interest in Phathom Soars As Firm Pledges Profit Path, Cuts Costs After Q1 Miss

​Retail interest for Phathom Pharmaceuticals soared on Thursday after the company reported first-quarter results, unveiled a sweeping cost-reduction plan and reaffirmed its target to achieve operational profitability by 2026.

The company posted Q1 revenue of $28.5 million, slightly below the $29.02 million consensus. 

Its net loss widened to $94.3 million from $82.9 million a year earlier, driven largely by increased advertising and promotional spend for its lead drug, VOQUEZNA.

“2025 will be an inflection point for Phathom,” said CEO Steve Basta. 

The company announced a 6% workforce reduction, multiple leadership changes, and significant cuts in external spending. 

Phathom expects the moves to reduce 2025 operating expenses by $60 million to $70 million and lower quarterly spend to under $55 million by the fourth quarter.

Basta said the company’s actions are designed to support long-term growth without raising new equity or debt. He added that sales force strength remains a top priority, with commercial personnel now comprising around 75% of the total workforce.

Voquezna prescriptions rose 8% sequentially in Q1 to 127,000, while cumulative prescriptions surpassed 390,000 as of April 18. 

Commercial access remained strong, with coverage extending to over 120 million lives, including more than 80% of commercially insured patients.

Phathom also paused its planned Phase 2 trial for eosinophilic esophagitis and is awaiting an FDA decision on its citizen petition seeking full NCE exclusivity through 2032.

Retail traders on Stocktwits remained optimistic despite the revenue miss, with sentiment marked as ‘bullish’ amid a 900% surge in 24-hour messaging volume. 

Several users said they were buying the dip, expressing continued confidence in the company’s long-term prospects.

One user said the volume spike was notable but still lower than on days when major patent or executive updates had occurred. 

They noted persistent concerns over cash burn, but said they welcomed management's move to finally address the issue publicly.

Some traders described the first quarter as unusually difficult for pharmaceutical firms, citing formulary changes and deductible resets. 

Others saw the update as a turning point, with one saying the stock could become a buyout candidate if exclusivity concerns are resolved and revenue momentum continues.

Shares of Phanthom have fallen 54.2% so far this year.

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