Drug Price Trends for VOQUEZNA

Average Pharmacy Cost for VOQUEZNA

These are average pharmacy acquisition costs (net of discounts) from a US national survey

Drug Name	NDC	Price/Unit ($)	Unit	Date
VOQUEZNA DUAL PAK	81520-0250-14	7.30359	EACH	2025-01-22
VOQUEZNA DUAL PAK	81520-0250-01	7.30359	EACH	2025-01-22
VOQUEZNA 10 MG TABLET	81520-0100-30	21.81142	EACH	2025-01-01
VOQUEZNA 20 MG TABLET	81520-0200-30	21.81508	EACH	2025-01-01
VOQUEZNA TRIPLE PAK	81520-0255-01	7.27053	EACH	2025-01-01
VOQUEZNA TRIPLE PAK	81520-0255-14	7.27053	EACH	2025-01-01
VOQUEZNA 20 MG TABLET	81520-0200-30	20.77627	EACH	2024-12-18

Market Analysis and Price Projections for VOQUEZNA

Introduction to VOQUEZNA

VOQUEZNA, developed by Phathom Pharmaceuticals, is a novel, first-in-class potassium-competitive acid blocker (P-CAB) designed to treat gastroesophageal reflux disease (GERD) and other acid-related disorders. The drug has recently gained significant traction in the market, particularly following its FDA approval and label expansion to include non-erosive GERD.

Market Growth and Adoption

The commercial launch of VOQUEZNA has been highly successful, with several key indicators pointing to robust market growth:

• Prescription Growth: As of the third quarter of 2024, over 143,000 prescriptions for VOQUEZNA products have been filled, representing a 138% increase from the previous quarter. The sequential growth in the third quarter nearly doubled, with over 69,000 prescriptions filled, compared to approximately 35,000 in the second quarter[1][2].
• Expanding Prescriber Base: The number of prescribers has increased significantly, with more than 13,600 cumulative prescribers as of October 18, 2024, up from 8,200 since the last quarterly report, a rise of over 65%[1].
• Broad Commercial Coverage: VOQUEZNA now has access to over an estimated 120 million U.S. commercially covered lives, representing over 80% of U.S. commercial lives[1].

Financial Performance

The financial results for VOQUEZNA reflect its growing market presence:

• Revenue: Net revenues for the third quarter of 2024 were $16.4 million, a significant increase from the second quarter's $7.3 million. This growth is attributed to the increasing demand and expanded label for non-erosive GERD[1][2].
• Research and Development (R&D) Expenses: R&D expenses have decreased due to the wrap-up of clinical trial activities, specifically the Phase 3 PHALCON-NERD-301 daily dosing study. This decrease has been observed in both the second and third quarters of 2024[1][2].
• Selling, General, and Administrative (SG&A) Expenses: SG&A expenses have increased substantially, driven by higher personnel costs and increased commercial infrastructure and marketing activities. For the third quarter of 2024, SG&A expenses were $76.1 million, up from $23.4 million in the third quarter of 2023[1].

Analyst Ratings and Price Targets

Several analysts have expressed optimism about VOQUEZNA's market potential and Phathom Pharmaceuticals' stock performance:

• H.C. Wainwright: Analyst Matthew Caufield reiterated a Buy rating with a price target of $28.00, citing the drug's impressive growth and market potential. Caufield highlighted VOQUEZNA's superiority over traditional proton pump inhibitors (PPIs) and its wide label coverage[5].
• Guggenheim: Maintained a positive stance with a Buy rating and a stock price target of $28.00, reflecting the company's strong performance and future prospects[3].
• Goldman Sachs: Increased Phathom's price target to $12, maintaining a neutral stance, indicating a more cautious but still positive outlook[3].

Market Potential and Competitive Landscape

VOQUEZNA operates in a significant market with substantial growth potential:

• GERD Market Size: The GERD market includes over 22 million diagnosed and annually treated patients in the U.S. alone. VOQUEZNA's label expansion to include non-erosive GERD has significantly broadened its market opportunity[2][5].
• Competitive Advantage: VOQUEZNA offers a more rapid, potent, and sustained effect compared to traditional PPIs. Its ability to treat a wide range of GERD-related conditions without the need for endoscopy makes it an attractive option for healthcare providers[5].

Challenges and Opportunities

Despite its strong market performance, VOQUEZNA faces some challenges:

• Marketing Challenges: While VOQUEZNA has shown superior efficacy, it must compete with the low cost and familiarity of generic PPIs. Phathom Pharmaceuticals is investing heavily in marketing and commercial infrastructure to overcome these challenges[4].
• Primary Care Physicians: The current prescription base is largely driven by gastroenterologists, but primary care physicians represent a significant opportunity for future growth. Expanding the prescriber base to include more primary care physicians could further boost VOQUEZNA's market penetration[5].

Price Projections and Future Outlook

Given the robust growth and positive analyst ratings, here are some key points regarding price projections:

• Short-Term Projections: With the recent equity raise of $130 million, Phathom Pharmaceuticals is well-positioned to continue investing in the commercialization and further clinical development of VOQUEZNA. This financial strength, combined with the drug's growing market adoption, supports a positive short-term outlook[1][3].
• Long-Term Projections: Analysts' price targets, such as those from H.C. Wainwright and Guggenheim, suggest a long-term potential for significant growth. The estimated annual net sales of over $1 billion, similar to vonoprazan's performance in Japan, indicate a substantial long-term market potential[4][5].

Key Takeaways

• Strong Market Adoption: VOQUEZNA has seen rapid growth in prescriptions and an expanding prescriber base.
• Broad Commercial Coverage: The drug now covers over 80% of U.S. commercial lives.
• Positive Analyst Ratings: Multiple analysts have reiterated Buy ratings with significant price targets.
• Competitive Advantage: VOQUEZNA offers superior efficacy compared to traditional PPIs.
• Future Growth Potential: The drug has a large market opportunity, particularly among primary care physicians.

FAQs

Q: What is VOQUEZNA, and how does it differ from traditional GERD treatments? A: VOQUEZNA is a potassium-competitive acid blocker (P-CAB) that offers a more rapid, potent, and sustained effect compared to traditional proton pump inhibitors (PPIs). It is the first major innovation in GERD treatment in over three decades[5].

Q: What is the current market coverage of VOQUEZNA? A: VOQUEZNA now has access to over an estimated 120 million U.S. commercially covered lives, representing over 80% of U.S. commercial lives[1].

Q: How has the prescription growth for VOQUEZNA been? A: As of the third quarter of 2024, over 143,000 prescriptions for VOQUEZNA products have been filled, with a sequential growth of nearly 100% in the third quarter compared to the second quarter[1].

Q: What are the analyst ratings and price targets for Phathom Pharmaceuticals? A: Analysts from H.C. Wainwright and Guggenheim have reiterated Buy ratings with price targets of $28.00. Goldman Sachs has a neutral stance with a price target of $12[3][5].

Q: What are the main challenges facing VOQUEZNA in the market? A: Despite its superior efficacy, VOQUEZNA faces competition from low-cost and familiar generic PPIs. Phathom Pharmaceuticals is addressing this through significant marketing and commercial infrastructure investments[4].

Cited Sources

1. Phathom Pharmaceuticals Reports Third Quarter 2024 Financial Results and Provides Business Updates - Biospace
2. Phathom Pharmaceuticals Reports Second Quarter 2024 Financial Results and Provides Business Update - Biospace
3. Phathom Pharmaceuticals seeks FDA clarity on drug exclusivity - Investing.com
4. Phathom's Voquezna: A Breakthrough Drug Facing Marketing Challenges - Seeking Alpha
5. Phathom Pharmaceuticals' Voquezna: A Buy Rating on Breakthrough GERD Treatment and Market Growth Potential - Markets Business Insider