Azmi Nabulsi
About Azmi Nabulsi
Azmi A. Nabulsi, M.D., M.P.H., age 65, is co‑founder and Chief Operating Officer of Phathom Pharmaceuticals (PHAT) since March 2019; prior roles include Deputy Chief Medical & Scientific Officer and Head of Global Development at Takeda (2014–2018) and leadership positions at Abbott (1994–2004). He holds an M.D. from Ain‑Shams University and an M.P.H. from the University of Minnesota . Company performance during his tenure includes FY 2024 revenue growth with ongoing losses, and cumulative TSR of $72.37 (from a hypothetical $100 initial value) in 2024 vs $81.37 in 2023 . See performance table below.
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | —* | 682,000* | 55,252,000* |
| EBITDA ($) | (171,820,000)* | (166,737,000)* | (276,672,000)* |
| Net Income ($) | (197,723,000)* | (201,592,000)* | (334,326,000)* |
Values retrieved from S&P Global.
TSR snapshot: $81.37 in 2023 and $72.37 in 2024 based on $100 initial investment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Takeda Pharmaceuticals | Deputy Chief Medical & Scientific Officer; Head, Global Development | 2014–Oct 2018 | Oversaw global drug development across early/late-stage programs; led medical, analytics, operations . |
| Abbott Laboratories | Leadership roles incl. Head of Immunology & Oncology Ventures | 1994–2004 | Built and led therapeutic area venture functions . |
| Frazier Life Sciences | Entrepreneur‑in‑Residence | Oct 2018–present | Portfolio support and company formation within Frazier . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ReAlta Life Sciences | Director | Mar 2020–2023 | Board oversight for early-stage biotech . |
| Saama Technologies, Inc. | Business & Clinical Advisor | Jan 2019–2022 | Clinical data and analytics advisory . |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus % of Salary |
|---|---|---|
| 2022 | 525,000 | 50% |
| 2023 | 552,000 | 50% |
| 2024 | 569,000 | 50% |
Performance Compensation
Annual Cash Bonus Outcomes
| Year | Corporate Performance Achieved | Individual Performance | % of Target Earned | Bonus Paid ($) |
|---|---|---|---|---|
| 2022 | 104.7% corporate goal achievement | Not disclosed | Not disclosed | 274,838 |
| 2023 | 115.95% corporate goal achievement | Not disclosed | Not disclosed | 320,022 |
| 2024 | 80% corporate; bonus weighting 90% corporate / 10% individual for NEOs | 100% (individual) | 82% | 233,290 |
Bonus Metrics and Weighting (program design)
| Year | Metric Category | Weighting | Examples / Notes |
|---|---|---|---|
| 2022 | Regulatory/Clinical/Manufacturing | 40% | NDA milestones; Phase 3 outcomes; nitrosamine mitigation progress . |
| 2022 | Commercial Readiness | 40% | Launch readiness objectives . |
| 2022 | Financial | 20% | Financing and fiscal targets . |
| 2023 | Regulatory/Clinical/Manufacturing | 55% | FDA approvals (erosive GERD), long‑term extension completion . |
| 2023 | Financial | 25% | Capital raise; fiscal goals . |
| 2023 | Commercial Readiness | 20% | Launch readiness . |
| 2024 | Regulatory/Clinical/Manufacturing | 25% | Non‑Erosive GERD NDA approval . |
| 2024 | Financial/Operational/Commercial | 75% | Year‑end cash, written prescriptions, total net product revenue . |
Equity Awards – Grants, Terms, and Vesting
| Year | Instrument | Grant Date | Quantity | Key Terms |
|---|---|---|---|---|
| 2022 | RSUs | 01‑19‑2022 | 19,500 | Vest in 3 equal annual tranches . |
| 2022 | RSUs | 05‑19‑2022 | 8,000 | Vest on 11/19/2022, 05/19/2023, 11/19/2023 . |
| 2022 | RSUs | 09‑01‑2022 | 7,500 | Vest 50% on 03/01/2023 and 50% on 06/01/2023 . |
| 2023 | Options | 01‑19‑2023 | 75,000 | 4‑yr vest; exercise price $8.35; 10‑yr term . |
| 2023 | RSUs | 01‑19‑2023 | 45,000 | 3‑yr vest (annual thirds) . |
| 2023 | PSUs | 01‑2023 | 22,500 | Vest upon FDA approvals for H. pylori and erosive GERD; achieved 11/01/2023 . |
| 2023 | RSUs (Option Exchange) | 07‑14‑2023 | 110,000 | Exchange ratio 2‑for‑1 of surrendered underwater options; vest annually on 07/14/2024, 07/14/2025, 07/14/2026 . |
| 2024 | Options | 01‑18‑2024 | 130,000 | 4‑yr vest; exercise price $7.60; 10‑yr term . |
| 2024 | RSUs | 05‑31‑2024 | 5,000 | Vests on the first three anniversaries of 12/18/2023 . |
Outstanding Awards Snapshot (as of 12/31/2024)
| Grant | Exercisable Options (#) | Unexercisable Options (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | Market Value ($) |
|---|---|---|---|---|---|---|
| 01‑19‑2022 Options/RSUs | 71,093 | 26,407 | 15.21 | 01‑18‑2032 | 6,500 | 52,780 . |
| 01‑19‑2023 Options/RSUs | 35,937 | 39,063 | 8.35 | 01‑18‑2033 | 30,000 | 243,600 . |
| 07‑14‑2023 RSUs (Exchange) | — | — | — | — | 73,334 | 595,472 . |
| 01‑18‑2024 Options | — | 130,000 | 7.60 | 01‑17‑2034 | — | — . |
| 05‑31‑2024 RSUs | — | — | — | — | 5,000 | 40,600 . |
Equity Ownership & Alignment
- Anti‑hedging/pledging: Phathom prohibits hedging, short‑selling, margining, pledging, and derivative transactions in company stock .
- Stock ownership requirements: None for NEOs; no executive ownership guidelines in place .
Beneficial Ownership
| As of | Shares Beneficially Owned | % of Shares Outstanding | Composition |
|---|---|---|---|
| 03/30/2023 | 793,622 | 1.8% | Includes 5,567 ESPP; 2,355 in 401(k) Phathom Stock Fund; 169,583 options exercisable within 60 days; 785,700 shares held by Azmi A. Nabulsi Living Trust . |
| 03/28/2024 | 968,475 | 1.7% | Includes 7,321 ESPP; 3,579 in 401(k); 81,875 options exercisable within 60 days; 785,700 shares in Living Trust . |
| 04/07/2025 | 1,097,668 | 1.6% | Includes 9,295 ESPP; 3,579 in 401(k); 168,333 options exercisable within 60 days; 785,700 shares in Living Trust . |
Pledging: None disclosed; policy prohibits pledging .
Employment Terms
| Scenario | Cash Severance | Bonus Treatment | Benefits | Equity Vesting | CIC Trigger Window |
|---|---|---|---|---|---|
| Termination without Cause or Resignation for Good Reason (non‑CIC) | 9 months’ base salary continuation | Lump sum prorated target bonus; prior year unpaid bonus if applicable | COBRA premiums for up to severance period or eligibility under new coverage | Acceleration of awards that would vest during severance period | — |
| CIC double‑trigger (termination within CIC window) | 12 months’ base salary continuation | Lump sum full target bonus; prior year unpaid bonus if applicable | COBRA premiums for up to severance period or new coverage | Full acceleration of all unvested equity awards upon effective release/CIC | 3 months prior to and 24 months following a change‑in‑control |
| Clawback | Recovery of erroneously awarded incentive compensation upon accounting restatement (SEC/Nasdaq compliant) | — | — | — | — |
Definitions of “cause,” “good reason,” and “change in control” follow the company’s plan documents (aligned with CEO letter definitions) .
Compensation Structure Analysis
- Mix of pay: Significant at‑risk pay via annual bonuses and multi‑year equity; options remain a major component, complemented by RSUs .
- Option Exchange (July 2023): Underwater options exchanged for fewer RSUs at a 2‑for‑1 ratio; for Nabulsi, 220,000 options surrendered → 110,000 RSUs vesting in three annual tranches beginning 07/14/2024. This reduced strike‑price risk and introduced scheduled vesting that can increase liquidity pressure around vest dates .
- Performance‑linked equity: 22,500 PSUs granted in 2023 to NEOs, vesting on FDA approvals for H. pylori and erosive GERD—achieved 11/01/2023, indicating strong regulatory execution alignment .
- Peer benchmarking: Compensation set using a 17‑company commercial/late‑stage biotech peer group (market cap $160mm–$2bn) identified by Pay Governance; Phathom targeted between 25th–50th percentile for director pay in 2024; peer list includes Arcutis, Crinetics, Mirum, Travere, etc. .
Investment Implications
- Alignment: Double‑trigger CIC protection with full equity acceleration only upon termination supports retention yet can create meaningful optionality value; no pledging/hedging allowed; sizable personal ownership via living trust (785,700 shares) aligns incentives .
- Liquidity/overhang: RSU schedules from the 2023 Option Exchange (110,000 RSUs) vest annually on 07/14 through 2026, and 2024 RSUs (5,000) vest on anniversary dates tied to 12/18/2023; these dates can concentrate potential Form 4 selling activity around vest windows. Outstanding options (130,000 at $7.60; 8.35/15.21 tranches) add future exercisable supply but also upside leverage .
- Execution track record: 2023 PSUs vested on dual FDA approvals, indicating delivery on key regulatory milestones; bonus programs tie payouts to regulatory, commercial, and financial goals—2023 achievement at 115.95% underscores strong operational execution, while 2024 achievement (80%) reflects commercialization scaling challenges and cash/revenue targets .
- Risk flags: 2023 option‑to‑RSU exchange is a modification of equity awards that reduces at‑risk leverage vs options, typical for retention but can be viewed as less performance‑sensitive; continued negative EBITDA/Net Income necessitates disciplined cash management and successful commercial ramp to sustain compensation-funded retention .
Values retrieved from S&P Global for the “Company performance during tenure” table.