Executive Summary

Q2 revenue of $39.50M grew 39% sequentially and ~440% y/y, with non-GAAP EPS loss of $0.79; GAAP EPS loss was $1.05 . Versus S&P Global consensus, revenue beat by $3.92M and EPS beat by $0.25, driven by stronger VOQUEZNA uptake and channel execution (S&P Global data)*.
Management introduced FY25 revenue guidance of $165–$175M and reiterated its goal to reach profitability in 2026; non-GAAP opex targets step down to < $60M in Q3 and < $55M in Q4 .
Commercial KPIs accelerated: ~173k VOQUEZNA Rxs in Q2 (+36% q/q), 580k+ launch-to-date (+49% since May 1), 29.3k cumulative prescribers, retail mix ~68% .
FDA updated Orange Book to reflect 10-year NCE exclusivity for tablets through May 2032; company believes generic entry unlikely before 2033, a key de-risking event for durability of cash flows .
Stock reacted positively on print; pre-market rose ~12% as beats and guidance reinforced profitability trajectory .

What Went Well and What Went Wrong

What Went Well

Strong top-line momentum and KPI expansion: Net revenue $39.50M; ~173k Q2 scripts (+36% q/q); 580k+ cumulative scripts; 29.3k unique HCP prescribers .
Operating discipline: Sequential opex down to $94.4M in Q2 from $103.7M in Q1; non-GAAP opex $86.1M; trajectory tighter with targets of < $60M in Q3 and < $55M in Q4 .
Exclusivity clarity: FDA updated Orange Book to 10-year NCE for tablets (to May 2032) and management expects no generic before 2033, supporting long-run commercialization runway . CEO: “We delivered strong sequential revenue growth, implemented strategic cost reductions, and shifted our commercial strategy to focus on high-value prescribers… well-positioned… to achieve profitability in 2026.” .

What Went Wrong

Losses remain material despite progress: Q2 GAAP net loss $75.8M; SG&A still elevated at $85.3M given commercial build and one-time restructuring charges .
Channel/pricing dynamics: Retail mix eased to ~68% as BlinkRx cash-pay programs expand (notably to Medicare), which can affect gross-to-net and complicate trend-reading; management expects GtN to remain 55–65% in 2025 .
Potential H. pylori Triple Pak supply risk (clarithromycin) discussed; management prepared to pivot emphasis to Dual Pak if needed; no commercial disruption to date .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025	Q2 2025 Consensus*	Surprise vs Est.*
Revenue ($M)	$7.32	$28.52	$39.50	$35.58*	+$3.92*
GAAP EPS ($)	($1.56)	($1.31)	($1.05)	($1.04)*	+$0.25*
Non-GAAP EPS ($)	($1.25)	($1.07)	($0.79)	N/A	N/A
Gross Profit ($M)	$5.95	$24.80	$34.47	N/A	N/A
Gross Margin %	81.2% (calc)	87%	87.2% (calc)	N/A	N/A
Total Operating Expenses ($M)	$83.25	$103.66	$94.39	N/A	N/A
Net Loss ($M)	($91.45)	($94.32)	($75.81)	N/A	N/A

Notes: Surprise vs Est. based on S&P Global consensus for Q2 revenue and Primary EPS (GAAP) at the time of report. Gross margin percentages for Q2 2024 and Q2 2025 are calculated from reported gross profit and revenue (citations show source figures). Values retrieved from S&P Global.*

No segment breakdown reported; business is driven by VOQUEZNA family .

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
VOQUEZNA prescriptions (quarter)	~118k	~127k	~173k
VOQUEZNA prescriptions (launch-to-date)	300k+ (to Feb 21, 2025)	390k+ (to Apr 18, 2025)	580k+ (to Jul 25, 2025)
Unique prescribers (cumulative)	>20,000 (to Feb 14, 2025)	>23,600 (to Apr 11, 2025)	>29,300 (to Jul 18, 2025)
Retail channel mix	~75% (Q4 reference)	~70%	~68%
GI share of filled Rxs (cumulative)	N/A	N/A	~70%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	No formal guide; CEO said analyst range reasonable	$165–$175M	New
Non-GAAP Operating Expenses	Q3 2025	N/A	< $60M	New
Non-GAAP Operating Expenses	Q4 2025	< $55M quarterly target (ex stock comp, interest, certain accruals)	< $55M	Maintained
Gross-to-Net Discount Rate	FY 2025	55%–65% (average)	Within 55%–65% range	Maintained
Profitability from operations (ex-SBC)	2026	Target 2026	Reiterated 2026	Maintained
Regulatory exclusivity (tablets)	NCE exclusivity	CP pending to correct Orange Book	10-year NCE to May 2032; generic unlikely before 2033	Improved

Earnings Call Themes & Trends

Topic	Q4 2024 (press release)	Q1 2025 (call)	Q2 2025 (call)	Trend
Commercial focus	Broad DTC push; prescribers and scripts accelerating -	Pullback from broadcast DTC; prioritize field sales ROI; maintain sales force -	Reprioritize GIs; depth over breadth; GI ~70% of filled Rxs	Sharpened targeting to GIs; efficiency focus
Access/channel	120M+ covered lives; strong retail and BlinkRx options	Retail ~70% vs 75% in Q4; new Medicare cash-pay via BlinkRx	Retail ~68%; BlinkRx expanded to Medicare; both segments growing	Cash-pay growing; retail remains majority
Gross-to-net	Not specified	53% in Q1; guide 55%–65% for 2025	Within 55%–65% in Q2	In guided range
Cost discipline	Heavy SG&A for DTC launch -	$60–$70M 2025 opex reduction; Q4 cash opex < $55M	Non-GAAP opex: Q3 < $60M; Q4 < $55M	Execution underway
Regulatory/exclusivity	CP filed Dec-2024; exclusivity clarity pending	CP timing discussed; contingency plans	Orange Book updated to May 2032 NCE; generic unlikely before 2033	Materially de-risked
Supply chain	Not highlighted	Potential Triple Pak supply risk disclosed	Monitoring supplier; prepared to shift to Dual Pak; no disruption	Managed contingency

Management Commentary

CEO perspective on quarter and strategy: “We delivered strong sequential revenue growth, implemented strategic cost reductions, and shifted our commercial strategy to focus on high-value prescribers… well-positioned to accelerate VOQUEZNA’s adoption and achieve profitability in 2026.” .
On commercial targeting: “This is a deliberate move to drive depth over breadth… Focusing on GIs is a clear and efficient path to our goal of growth and profitability.” .
On access and channel mix: “Approximately 68% of Q2 VOQUEZNA prescriptions were filled through the retail channel … slight decrease … due to the rollout of a cash pay option for Medicare patients through BlinkRx.” .
On exclusivity: “The FDA has now officially updated the Orange Book to reflect exclusivity for the VOQUEZNA … tablets through May of 2032.” .

Q&A Highlights

Focus shift to GIs: Analysts probed impact of de-emphasizing PCPs; management emphasized higher ROI and phased growth with GIs as core writers and later PCP conversion via patient experience .
Data restatements: IQVIA’s weekly TRx restatement noted; management stressed no impact on reported revenues, which are not derived from IQVIA .
Gross-to-net: Q2 discount rate within 55–65% guided range; expected to remain within that range for 2025 .
Supply chain contingency: Monitoring clarithromycin supply; ready to pivot emphasis to Dual Pak; no disruption observed .
Profitability timeline: Reaffirmed 2026 operating profitability target; opex trajectory supports this .

Estimates Context

Q2 2025 vs Consensus (S&P Global): Revenue $39.50M vs $35.58M*, beat +$3.92M*; GAAP EPS ($1.05) vs ($1.04); Non-GAAP EPS ($0.79) widely tracked externally, but S&P “Primary EPS” consensus reflects GAAP; management did not guide EPS . Values retrieved from S&P Global.
FY 2025 consensus: Revenue $173.39M*; EPS ($3.16); Target price mean $23.13 (8 ests); company guided revenue $165–$175M, bracketing consensus . Values retrieved from S&P Global.*
Street models likely move modestly higher on Q2 beat and exclusivity clarity; operating expense trajectory provides additional confidence in 2026 profitability .

Key Takeaways for Investors

Growth inflecting with tighter spend: Sequential revenue +39% and non-GAAP opex guide stepping down into 2H25 increase confidence in 2026 profitability .
Durable runway: NCE exclusivity to May 2032 for tablets and company view of no generic before 2033 materially de-risk the long-term model .
Commercial execution pivot: GI-first depth strategy and BlinkRx programs sustain access while preserving gross-to-net within guided range; watch retail/cash-pay mix .
Risks managed but present: SG&A still high during transition; Triple Pak supply risk mitigated by Dual Pak; monitor any impact on H. pylori contribution .
Catalysts: Execution toward FY25 revenue guide; opex step-down evident in Q3/Q4; continued Rx growth; potential competitive dynamics (PCAB class) framing category expansion rather than displacement .
Ownership/technicals: Company clarified that a forthcoming Frazier 13D update reflected reporting changes, not stake reduction—helps quell technical overhang .
Trading setup: Post-beat momentum and exclusivity clarity were positive stock catalysts; pullbacks tied to cost trajectory or channel mix shifts could be add points if Rx trend intact .

Footnote: Values retrieved from S&P Global.* Citations: Company Q2 2025 press release and 8-K - -; Q1 2025 press release and call transcript - -; FY24 press release -; Earnings call transcript excerpts sourced externally where internal transcript unavailable .

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