FLORHAM PARK, N.J. - CVS Caremark, the largest pharmacy benefit manager in the United States, has included VOQUEZNA® (vonoprazan) tablets in its commercial formularies, Phathom Pharmaceuticals Inc. (NASDAQ:PHAT) announced Monday. This move is set to increase access to the medication for over 26 million commercially insured members.
VOQUEZNA, a first-of-its-kind medication for Gastroesophageal Reflux Disease (GERD) treatment, is now estimated to be accessible to over 116 million people with commercial insurance coverage in the U.S. The drug, which is the first and only FDA-approved potassium-competitive acid blocker (PCAB) in the country, is intended for the relief of heartburn associated with Non-Erosive GERD and for the treatment of all severities of Erosive Esophagitis, or Erosive GERD.
Martin Gilligan, Chief Commercial Officer of Phathom, expressed satisfaction with the broad commercial coverage for VOQUEZNA, emphasizing the importance of the development for GERD patients in need of new treatment options. According to Gilligan, approximately 77% of the total commercial lives now have access to VOQUEZNA, which aligns with the company's market access strategy.
To assist patients with coverage or affordability challenges, Phathom has established savings programs, including a card that allows eligible patients with commercial insurance to pay as low as $25 for their prescription. In partnership with BlinkRx, a digital fulfillment channel, the company aims to help patients find the most affordable options for their prescriptions.
VOQUEZNA is available by prescription and marketed exclusively by Phathom Pharmaceuticals. It is approved for use in adults for the treatment of Erosive Esophagitis and the relief of heartburn associated with Erosive GERD, for up to 6 months to maintain healing of Erosive Esophagitis, for the relief of heartburn related to Non-Erosive GERD, and for the treatment of H. pylori infection in combination with antibiotics.
This announcement is based on a press release statement from Phathom Pharmaceuticals and reflects the latest addition to CVS Caremark's formulary, which may significantly impact the treatment landscape for GERD patients across the United States.
In other recent news, Phathom Pharmaceuticals has been making significant strides in the healthcare sector. The company's Voquezna oral tablets, a novel treatment for gastroesophageal reflux disease (GERD), recently received FDA approval for label expansion.
This development allows Voquezna to cater to the full spectrum of GERD, potentially eliminating the need for endoscopy before prescription, and simplifying the treatment pathway. The expanded label is expected to create substantial growth opportunities for Phathom Pharmaceuticals, which is anticipated to become evident in the second half of 2024 as per H.C. Wainwright.
In addition, the FDA approval of Voquezna for Non-Erosive GERD in adults marks a major advancement in GERD treatment, the first of its kind in over three decades. This approval is based on the PHALCON-NERD-301 study, which demonstrated a significant reduction in heartburn episodes compared to placebo. Voquezna is now available by prescription in the United States.
Financial services firms, H.C. Wainwright and Stifel, have maintained a Buy rating for Phathom Pharmaceuticals following the successful launch of Voquezna. Stifel has particularly noted the positive reception in the physician community and the drug's smooth market introduction.
The firm also highlighted the potential of Voquezna to replace long-standing proton pump inhibitors (PPIs), given its rapid, superior, and long-lasting effectiveness. Phathom Pharmaceuticals is expected to submit a new drug application for non-erosive GERD by July 19, 2024, and is conducting ongoing studies for as-needed GERD dosing and eosinophilic esophagitis (EoE).
InvestingPro Insights
As Phathom Pharmaceuticals Inc. (NASDAQ:PHAT) secures a significant formulary inclusion for VOQUEZNA® with CVS Caremark, the company's financial health and market performance become increasingly relevant to investors and stakeholders. The latest data from InvestingPro shows a mixed financial picture for Phathom. With a market capitalization of $670.69 million, the company is trading at a high revenue valuation multiple. This is indicative of investor optimism about the company's future growth prospects, despite the fact that it is not currently profitable.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable within the same timeframe. This is underscored by concerns about the company's cash burn rate and the expectation that net income may drop this year. Nevertheless, it is noteworthy that Phathom's liquid assets exceed its short-term obligations, which may provide some financial flexibility in the near term.
Market performance metrics provide a brighter outlook, with Phathom showing a strong return over the last three months and a significant price uptick over the last six months. Specifically, the 3-month price total return sits at an impressive 26.91%, and the 6-month price total return is even more striking at 67.79%. These figures reflect positive market sentiment and could be a response to strategic moves such as the recent CVS Caremark formulary inclusion.
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