Evofem Biosciences Q1 2024 Financial Results

Evofem Biosciences, Inc., the company behind the hormone-free contraceptive Phexxi®, has reported their financial results for the first quarter of 2024. This period has seen several significant developments and financial outcomes for the company.

In May 2024, Evofem received a $1 million payment from Aditxt, Inc. as part of an amended Merger Agreement between the two companies. Aditxt has also committed to investing an additional $2.5 million in Evofem by July 1, 2024, with the transaction anticipated to close in the second half of 2024.

Evofem has also fortified its intellectual property portfolio with the approval of a new Composition of Matter Patent for Phexxi by the U.S. Patent and Trademark Office. This will be the fifth U.S. patent for Phexxi, enhancing the product's market protection.

In May 2024, Evofem launched a partnership with Modern Remedies, a leading pharmacy in the Northeast that dispenses Phexxi. Additionally, the company successfully renegotiated the rebate for Phexxi with Medi-Cal, California's Medicaid program. Starting July 1, 2024, Evofem will benefit from a 7.4% lower rebate on Phexxi prescriptions dispensed to Medi-Cal beneficiaries.

Financially, Evofem reported net sales of $3.6 million for the first quarter of 2024. This figure represents a decrease from $5.8 million in the same period of the previous year, attributed to cyclical softness following the wholesale acquisition cost (WAC) increase on January 1, 2024, and the impact of a cyberattack on Change Healthcare in February 2024. The cyberattack caused delays in prescription processing and insurance claims, reducing the dispensed units of Phexxi and increasing costs temporarily. Despite these challenges, total operating expenses decreased by 31% to $6.4 million compared to the first quarter of 2023, due to significant reductions in selling, marketing, general, and administrative costs.

The loss from operations narrowed to $2.8 million, which is a 21% improvement over the $3.6 million loss recorded in the first quarter of 2023. Evofem's CEO, Saundra Pelletier, expressed optimism for 2024, expecting continued net sales growth driven by market access strategies and successful rebate reductions. Pelletier also highlighted a growing trend of using Phexxi as a supplementary contraceptive among women who use oral birth control pills alongside GLP-1 agonists like Mounjaro and Zepbound. These medications can reduce the effectiveness of oral contraceptives during certain periods, making Phexxi a valuable addition for added protection against unintended pregnancies.

As of March 31, 2024, Evofem had $0.7 million in restricted cash, slightly up from $0.6 million at the end of 2023. In April 2024, the company made a required quarterly payment of $0.1 million to a U.S.-based healthcare institutional investor.

Evofem Biosciences continues to focus on developing and commercializing innovative products to meet unmet needs in women's sexual and reproductive health. Their primary product, Phexxi, is an FDA-approved hormone-free contraceptive vaginal gel that offers on-demand protection. Phexxi is applied before each act of sex, providing a hormone-free option for contraception.

In summary, despite facing some challenges in the first quarter of 2024, Evofem Biosciences has made strategic moves to strengthen its market position and intellectual property portfolio while managing costs effectively. The company remains poised for continued growth and expansion in the women's health market.