Evofem Biosciences Reports Year-End 2022 Financial Results and Provides Corporate Update
-- Net product sales more than doubled in 2022 vs. prior year --
-- Reduced total operating expenses by
-- Evofem targeting EBITDA break-even by year-end 2023 --
Highlights include:
- Increased Phexxi net product sales
104% to in 2022;$16.8 million - Gained Phexxi coverage for more than 22.1 million new lives since
January 1, 2023 ; - More than
80% of Phexxi claims are now being approved (as ofFebruary 2023 , the most current data); - Reduced total operating expenses by
in 2022 vs. 2021, exceeding our stated goal to reduce costs by$74.1 million in 2022;$50 million - Implemented measures in
March 2023 to further decrease operating expenses, with the goal of reaching EBITDA break-even by year-end 2023. - Appointed
Ivy Zhang as Chief Financial Officer and Secretary effectiveApril 13, 2023 .
"In 2022, we more than doubled Phexxi revenue while cutting costs
Full Year Financial Results
For the year ended
Total operating expenses decreased
- We decreased selling and marketing costs by
61% to in 2022, compared to$44.0 million in the prior year. The decrease largely reflects a$113.2 million decrease in media and marketing costs in 2022 and a$61.0 million decrease in payroll related expenses due to reduced headcount.$6.3 million - Our research and development costs decreased to
, compared to$25.0 million in the prior year period, due to lower clinical trial expenses for the Phase 3 EVOGUARD trial, which was fully enrolled in March, the active phase complete in July, and top-line data reported in$33.1 million October 2022 . - Our general and administrative costs increased to
, compared to$27.6 million in the prior year, primarily reflecting higher legal, corporate and financing-related costs, offset in part by a decrease in stock-based compensation and in payroll related expenses due to reduced headcount.$24.7 million
As a result, net loss attributable to common stockholders improved to
Liquidity
At
In
- Salary cuts for certain employees, including a
40% reduction in Chief Executive Officer compensation and a20% reduction in pay for other continuing members of the executive team as compared to 2022 compensation; - Consolidation of three sales territories;
- Elimination of eight office and management positions, including the Chief Commercial Officer role, effective
March 17, 2023 .
The reduction in force and compensation adjustments were substantially completed in the first quarter of 2023.
Since
About
Phexxi® is a registered trademark of
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, statements related to the Company's goal to be EBITDA breakeven on a quarterly basis by year-end 2023. 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
Investor Contact
SVP, Investor Relations
araskopf@evofem.com
Mobile: (917) 673-5775
(Tables follow)
| |||
2022 | 2021 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 2,769 | $ 7,732 | |
Restricted cash | 1,207 | 5,056 | |
Trade accounts receivable, net | 1,126 | 6,449 | |
Inventories | 5,379 | 7,674 | |
Prepaid and other current assets | 2,218 | 3,229 | |
Total current assets | 12,699 | 30,140 | |
Property and equipment, net | 3,940 | 5,774 | |
Operating lease right-of-use assets | 4,406 | 5,395 | |
Other noncurrent assets | 4,118 | 1,203 | |
Total assets | $ 25,163 | $ 42,512 | |
Liabilities, convertible and redeemable preferred stock and stockholders' deficit | |||
Current liabilities: | |||
Accounts payable | $ 14,984 | $ 10,316 | |
Convertible notes payable - carried at fair value (Note 5) | 39,416 | 81,717 | |
Convertible notes payable - Adjuvant (Note 5) | 26,268 | 27,209 | |
Accrued expenses | 4,124 | 8,370 | |
Accrued compensation | 2,175 | 4,653 | |
Operating lease liabilities – current | 2,311 | 2,332 | |
Derivative liabilities | 1,676 | 202 | |
Other current liabilities | 2,876 | 2,864 | |
Total current liabilities | 93,830 | 137,663 | |
Operating lease liabilities – noncurrent | 3,133 | 4,424 | |
Total liabilities | 96,963 | 142,087 | |
Commitments and contingencies (Note 8) | |||
Convertible and redeemable preferred stock, | |||
Series B-1 convertible preferred stock, no shares issued and outstanding as of December | — | — | |
Series B-2 convertible preferred stock, no shares and 5,000 shares issued and outstanding | — | 4,740 | |
Stockholders' deficit | |||
Preferred stock, | — | — | |
Common stock, | 12 | 16 | |
Additional paid-in capital | 817,355 | 751,260 | |
Accumulated other comprehensive income | 49,527 | 5,089 | |
Accumulated deficit | (938,694) | (860,680) | |
Total stockholders' deficit | (71,800) | (104,315) | |
Total liabilities, convertible and redeemable preferred stock and stockholders' deficit | $ 25,163 | $ 42,512 |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Years Ended | |||
2022 | 2021 | ||
Product sales, net | 16,837 | $ 8,244 | |
Operating expenses: | |||
Cost of goods sold | 4,415 | 4,055 | |
Research and development | 25,032 | 33,129 | |
Selling and marketing | 43,951 | 113,152 | |
General and administrative | 27,563 | 24,709 | |
Total operating expenses | 100,961 | 175,045 | |
Loss from operations | (84,124) | (166,801) | |
Other income (expense): | |||
Interest income | 85 | 15 | |
Other expense | (2,087) | (4,732) | |
Loss on issuance of financial instruments | (72,993) | — | |
Change in fair value of financial instruments | 82,465 | (33,657) | |
Total other income (expense), net | 7,470 | (38,374) | |
Loss before income tax | (76,654) | (205,175) | |
Income tax expense | (44) | (17) | |
Net loss | (76,698) | (205,192) | |
Series B-1 and B-2 convertible preferred stock deemed dividends | |||
Net loss attributable to common stockholders | |||
Net loss per share attributable to common stockholders, basic and diluted | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders, | 58,248,079 | 8,727,253 |
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