Company: PHAT
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000950170-25-061440
Chunk: 7

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 3
Chunk 7
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Not Applicable.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

The information set forth below is included herein for the purpose of providing the disclosure required under “Item 2.05 Costs Associated with Exit or Disposal Activities.” and “Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.” of Form 8-K.

On April 29, 2025, our board of directors (the “Board”) approved a restructuring to reduce cash burn and focus on commercial execution. We have decided to reduce investment in direct-to-consumer promotion and will suspend, defer, or slow several clinical and product development programs, including deferring the start of the Phase 2 eosinophilic esophagitis (EoE) trial. 

In connection with this restructuring, we expect to reduce our workforce by 28 employees, or approximately 6%. We expect to incur one-time costs of approximately $7 million to $10 million in connection with the workforce reduction. The majority of these expenses will be recognized in the second quarter of 2025.These costs consist primarily of cash expenditures related to one-time termination benefits (some of which are contractual), including severance, healthcare and related benefits, and other estimated non-cash expense. We estimate that the workforce reduction will be substantially completed in the second quarter of 2025. The estimate of costs that we expect to incur and the timing thereof are subject to a number of assumptions, and actual results may differ materially. We may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the actions described above.

In addition, as part of the restructuring, we announced certain leadership changes. Azmi Nabulsi, M.D., our Chief Operating Officer and Molly Henderson, our Chief Financial Officer, ceased serving in these positions at the company, effective April 30, 2025, and will continue as non-executive employees through May 16, 2025. Effective May 1, 2025, we designated Robert Breedlove, our Vice President of Finance, as our principal financial officer and principal accounting officer for purposes of financial reporting under the Securities Exchange Act of 1934, as amended, replacing Ms. Henderson in such roles. 

Robert Breedlove, 33, has served as our Vice President of Finance since October 2021. From March 2019