Evofem Biosciences Announces Strong Preliminary Results, Record Phexxi Net Sales for Fiscal 2023

Rhea-AI Summary

Evofem Biosciences, Inc. (EVFM) reported strong preliminary unaudited results for fiscal 2023, with record net sales of Phexxi, its hormone-free contraceptive gel, and the lowest total operating expenses since becoming a commercial stage company in 2020. The company achieved net product sales in the range of $18.1 to $18.3 million, an impressive increase compared to 2022, despite a 73% reduction in field force and absence of growth capital. Total operating expenses were reduced by more than 60% from 2022 levels, and the loss from operations improved by more than 75% versus 2022 levels. The CEO attributed the revenue growth to strong consumer demand for Phexxi and the expansion of coverage and reimbursement. Additionally, Evofem entered into a definitive agreement to be acquired by Aditxt, Inc., which is expected to accelerate its growth trajectory into a multi-product women's health franchise.

Positive

• Record net sales of Phexxi in 2023
• Lowest total operating expenses since becoming a commercial stage company
• Net product sales in the range of $18.1 to $18.3 million, despite a reduction in field force and absence of growth capital
• More than 60% reduction in total operating expenses from 2022 levels
• Improvement in loss from operations by more than 75% versus 2022 levels
• Expectation of accelerated growth trajectory as a subsidiary of Aditxt

Negative

• None.

Financial Analyst

The preliminary financial results presented by Evofem Biosciences indicate a significant milestone for the company, with a reported increase in net product sales for its contraceptive gel, Phexxi®, despite a reduction in its sales force and a lack of growth capital. This suggests a strong market demand and effective cost management, which are critical factors in evaluating the company's operational efficiency and financial health. The reduction in total operating expenses by over 60% and the improvement in loss from operations by more than 75% compared to the previous year are particularly noteworthy, as they reflect a strategic move towards profitability.

Moreover, the acquisition by Aditxt, Inc. is a strategic development that could potentially enhance Evofem's market position and expand its product portfolio. This merger may provide economies of scale and synergies that could lead to improved financial performance in the future. However, the success of this acquisition will depend on the integration process and the ability of the combined entity to capitalize on the strengths of each company.

Market Research Analyst

Evofem's achievement in exceeding net product sales over sales and marketing expenses signals a positive reception of Phexxi® in the women's health market. This is indicative of a competitive advantage and brand loyalty among consumers, which is essential for sustaining long-term growth. The market for hormone-free contraceptives is likely expanding and Evofem's consistent revenue growth in this segment positions the company favorably within the industry.

The acquisition by Aditxt presents an opportunity for Evofem to leverage Aditxt's resources to further penetrate the market. The anticipated expansion into a multi-product women's health franchise could diversify Evofem's revenue streams and mitigate the risks associated with relying on a single product. It is important to monitor the progress towards the mid-2024 acquisition close, as it will have significant implications for both companies' market strategies and competitive dynamics.

Pharmaceutical Industry Analyst

Evofem's focus on a hormone-free contraceptive is strategically aligned with a growing consumer trend towards health-conscious products. The impressive sales growth of Phexxi® despite austerity measures indicates a strong product-market fit and an effective value proposition. The pharmaceutical industry often sees high sales and marketing expenditures, so outperforming these costs is a testament to the product's strength and market demand.

The upcoming acquisition by Aditxt is a pivotal event that could enhance research and development capabilities, leading to a broader product pipeline. It is essential to consider the potential for regulatory challenges and integration risks, which are common in pharmaceutical mergers and acquisitions. The success of this acquisition will be a key determinant of Evofem's ability to maintain its growth trajectory and compete effectively in the women's health sector.

Evofem Delivers Third Consecutive Year of Phexxi Net Sales Growth 

Total Operating Expense Reduced More Than 60% from 2022 Levels 

SAN DIEGO, Feb. 1, 2024 /PRNewswire/ -- Evofem Biosciences, Inc. (OTCQB: EVFM) today announced strong preliminary, unaudited results for fiscal 2023, including record net sales of Phexxi^® (lactic acid, citric acid, and potassium bitartrate), its hormone-free contraceptive gel, and the Company's lowest total operating expenses since becoming a commercial stage company in 2020.

• Achieved preliminary net product sales in the range of $18.1 to $18.3 million in 2023, an impressive increase compared to 2022 given the 73% reduction in field force and absence of growth capital in 2023.
• Company reached a key milestone with net product sales higher than sales and marketing expense for 2023.
• Reduced total operating expense by more than 60% from 2022 levels.
• Improved loss from operations by more than 75% versus 2022 levels.

"Strong consumer demand for Phexxi and the expansion of coverage and reimbursement enabled us to achieve our third consecutive year of revenue growth," said Saundra Pelletier, CEO of Evofem Biosciences. "We delivered more than $18 million in net sales for 2023 despite ongoing austerity measures that whittled our sales force down to just 16 and permitted no investment in growing the brand. Our growth testifies to the strength and persistence of Evofem's current team as well as the loyal users and prescribers of Phexxi nationwide."

In December 2023, Evofem, a commercial stage women's health innovator, entered into a definitive agreement to be acquired by Aditxt, Inc. (Nasdaq: ADTX), which Evofem believes is a compelling opportunity to accelerate its growth trajectory, as a subsidiary of Aditxt, into a multi-product women's health franchise. The companies are working toward a mid-2024 close.

Evofem expects to report full results for the three- and twelve-month periods ended December 31, 2023, in mid-March 2024.

About Evofem Biosciences
Evofem Biosciences, Inc., (OTCQB: EVFM) is commercializing innovative products to address unmet needs in women's sexual and reproductive health. The Company's first FDA-approved product, Phexxi^® (lactic acid, citric acid, and potassium bitartrate), is a hormone-free, on-demand prescription contraceptive vaginal gel. It comes in a box of 12 pre-filled applicators and is applied 0-60 minutes before each act of sex. Learn more at phexxi.com and evofem.com. 

Phexxi® is a registered trademark of Evofem Biosciences, Inc.

Forward-Looking Statements
This press release includes "forward-looking statements," within the meaning of the safe harbor for forward-looking statements provided by Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, without limitation, to Evofem's expected financial results for 2023 including net sales growth, the result of gross-to-net improvements, and operating expenses; statements, evaluations and judgments related to, among other things, demand for Phexxi; and closing of the contemplated Aditxt transaction and timing thereof. You are cautioned not to place undue reliance on these forward-looking statements, which are current only as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Important factors that could cause actual results to differ materially from those discussed or implied in the forward-looking statements are disclosed in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on April 27, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC on November 14, 2023 and any subsequent filings. All forward-looking statements are expressly qualified in their entirety by such factors. The Company does not undertake any duty to update any forward-looking statement except as required by law.

Investor Contact
Amy Raskopf
Evofem Biosciences, Inc.
araskopf@evofem.com
Mobile: (917) 673-5775

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/evofem-biosciences-announces-strong-preliminary-results-record-phexxi-net-sales-for-fiscal-2023-302050334.html

SOURCE Evofem Biosciences, Inc.

What were the preliminary net product sales range for Evofem in 2023?

Evofem reported preliminary net product sales in the range of $18.1 to $18.3 million in 2023.

What was the percentage reduction in total operating expenses from 2022 levels?

Total operating expenses were reduced by more than 60% from 2022 levels.

Who is the CEO of Evofem Biosciences?

Saundra Pelletier is the CEO of Evofem Biosciences.

What was the major business development mentioned in the press release?

Evofem entered into a definitive agreement to be acquired by Aditxt, Inc., which is expected to accelerate its growth trajectory into a multi-product women's health franchise.

What is the ticker symbol for Evofem Biosciences?

The ticker symbol for Evofem Biosciences is EVFM.