Evofem Reports $18.2 million of Phexxi Net Product Sales in 2023
- Third consecutive year of Phexxi net sales growth.
- Total operating expenses reduced by 64% from 2022 levels.
- Sales and marketing expense as a percentage of net sales was 54% in Q4 2023.
- Entered into an agreement to be acquired by Aditxt, Inc. for accelerated growth.
- Loss from operations improved by 79% versus 2022 levels.
- Key growth drivers for 2024 include increasing use of Phexxi in conjunction with certain medications and a 3% increase in Phexxi wholesale acquisition cost.
- Successful execution of Phexxi market access strategy with recent wins in Washington state and Medi-Cal negotiations.
- Net product sales were $18.2 million for 2023, driven by favorable reimbursements and Phexxi WAC increase.
- Total operating expenses decreased by 64% to $36.1 million in 2023.
- Reduction in selling and marketing costs by 73% and research and development costs by 88% in 2023.
- Loss from operations improved to $17.8 million in 2023.
- Net product sales were $4.8 million for Q4 2023, with a 33% decrease in total operating expenses.
- Loss from operations improved to $3.4 million in Q4 2023.
- Made $1.2 million in payments to a U.S.-based investor in 2023.
- Had $0.6 million of restricted cash as of December 31, 2023.
- None.
Insights
The financial results released by Evofem Biosciences indicate a significant reduction in operating expenses, particularly in selling and marketing, which is a typical area of concern for investors evaluating a company's cost management strategies. The decrease in total operating expenses by 64% and selling and marketing expenses by 73% from the previous year suggests aggressive cost-cutting measures, which have led to an improved loss from operations by 79%. This is a strong signal of fiscal discipline, which could be interpreted by investors as a positive step towards achieving profitability.
Furthermore, the announcement of the acquisition by Aditxt, Inc. could potentially offer additional financial stability and growth opportunities. However, investors should be cautious and consider the terms of the acquisition and the strategic fit between the two companies. The impact of the acquisition on the stock will depend on the perceived benefits and synergies of the combined entity.
From a market perspective, the increase in Phexxi net product sales and the successful execution of their market access strategy, including the removal of Prior Authorization for Phexxi, are notable. These developments could potentially lead to increased market penetration and user base growth. The strategic price increase of the Phexxi wholesale acquisition cost (WAC) is also a relevant factor that could contribute to higher revenue.
The mention of Phexxi's use in conjunction with GLP-1 agonists addresses a niche but growing segment of the market, which could be a key driver for future growth. Being a non-systemic, non-hormonal method positions Phexxi advantageously in a market that is increasingly aware of and sensitive to hormonal side effects.
The financial results of Evofem Biosciences reflect a strategic pivot in the company's approach to managing its product, Phexxi. The reduction in research and development expenses by 88% indicates a suspension or slowdown in clinical activities, which may concern stakeholders looking for long-term innovation pipelines. However, this move appears to be in line with a short-term strategy to stabilize the company financially.
The company's focus on expanding coverage and reimbursement, as evidenced by the recent negotiations with Medi-Cal, is important for the accessibility of Phexxi. This approach is reflective of the broader industry trend where companies are seeking to improve market access as a means to drive product adoption and sales.
-- Third Consecutive Year of Phexxi Net Sales Growth --
-- Total Operating Expense Reduced
-- Sales and marketing expense as a percentage of net sales was
- Delivered
$18.2 million 73% reduction in field force and absence of growth capital in 2023. - Sales and marketing expense was
64% of net sales for 2023, a key milestone for the Company and a significant improvement from prior years. 73% reduction in selling and marketing expenses in 2023 versus the prior year.- Improved loss from operations by
79% versus 2022 levels. - Entered into a definitive agreement to be acquired by Aditxt, Inc. (Nasdaq: ADTX). Evofem believes the contemplated transaction represents 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 closing in the second half of 2024.
"Our ongoing revenue growth and improved loss from operations testifies to the strength and persistence of Evofem's current sales team, the growing base of users and prescribers of Phexxi nationwide, and the continued expansion of coverage and reimbursement," said Saundra Pelletier, CEO of Evofem Biosciences.
Looking ahead, key growth drivers for 2024 include:
- Increasing use of Phexxi in women of reproductive age who take oral contraceptives in conjunction with GLP-1 agonists like Mounjaro and Zepbound. These drugs may make oral birth control pills less effective at certain points in the dosing schedule. Patients are advised to use a non-systemic, non-hormonal method, like Phexxi, to prevent unintended pregnancy during these times.
- A
3% increase in the Phexxi wholesale acquisition cost (WAC), which took effect January 1, 2024. - Ongoing success in executing the Phexxi market access strategy, including recent wins removing the Prior Authorization for Phexxi for 1.8 million lives in
Washington state and the successful negotiation with Medi-Cal of the Phexxi rebate; effective July 2024 Evofem will pay a7.4% lower rebate on Phexxi prescriptions from Medi-Cal.
Full Year Financial Results
For the year ended December 31, 2023, net product sales were
Total operating expenses were
- We reduced selling and marketing costs by
73% , from$44.0 $11.7 million in 2023. We lowered outside services, facilities and media, and marketing costs by$18.9 million $12.1 million - Our decision to suspend clinical activities in the fourth quarter of 2022 enabled us to reduce research and development costs by
88% , from$25.0 $2.9 million - We reduced our general and administrative costs by
46% from$27.6 $15.0 million
As a result, loss from operations improved to
Fourth Quarter Financial Results
For the three months ended December 31, 2023, net product sales were
Total operating expenses were
Sales and marketing expense as a percentage of net sales was
As a result, loss from operations improved to
Liquidity
In 2023, Evofem made
As of December 31, 2023, the Company had
About Evofem Biosciences
Evofem Biosciences 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, the level of utilization of Phexxi in women of reproductive age who take oral contraceptives in conjunction with GLP-1 agonists, and the anticipated benefits 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, 2023 filed with the SEC on March 27, 2024. 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
Financial tables follow
EVOFEM BIOSCIENCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except par value and share data) | |||
As of | |||
December 31, | |||
2023 | 2022 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ - | $ 2,769 | |
Restricted cash | $ 580 | $ 1,207 | |
Trade accounts receivable, net | $ 5,738 | $ 1,126 | |
Total current liabilities | $ 72,463 | $ 93,830 | |
Operating lease liabilities - non current | $ 8 | $ 3,133 | |
Total liabilities | $ 72,471 | $ 96,963 | |
Total stockholders' deficit | |||
Total liabilities, convertible and redeemable preferred stock | $ 10,554 | $ 25,163 | |
EVOFEM BIOSCIENCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) | |||||||
Three Months Ended | Years Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Product sales, net | $ 4,839 | $ 181 | $ 18,218 | ||||
Operating expenses: | |||||||
Cost of goods sold | 954 | 384 | 6,512 | 4,415 | |||
Research and development | 1,383 | 1,690 | 2,939 | 25,032 | |||
Selling and marketing | 2,628 | 7,000 | 11,664 | 43,951 | |||
General and administrative | 3,254 | 3,159 | 14,950 | 27,563 | |||
Total operating expenses | 8,219 | 12,233 | 36,065 | 100,961 | |||
Loss from operations | (3,380) | (12,052) | (17,847) | (84,124) | |||
Other income (expense): | |||||||
Interest income | 3 | 30 | 31 | 85 | |||
Other expense, net | (587) | (765) | (2,628) | (2,087) | |||
Loss on issuance of financial | (1,490) | (991) | (6,776) | (72,993) | |||
Gain (loss) on debt extinguishment | - | - | 75,337 | (24,487) | |||
Change in fair value of financial | 3,340 | 5,450 | 4,879 | 106,952 | |||
Total other income, net | 1,266 | 3,724 | 70,843 | 7,470 | |||
Income (loss) from continuing operations | (2,114) | (8,328) | 52,996 | (76,654) | |||
Income tax expense | - | (8) | (17) | (44) | |||
Net income (loss) attributable to common | (2,114) | (8,336) | 52,979 | (76,698) | |||
Convertible preferred stock deemed | (2,984) | (3,143) | (2,984) | (1,316) | |||
Net income (loss) attributable to common | $ (5,098) | $ 49,995 | |||||
Net income (loss) per share attributable to | |||||||
Basic | $ (0.44) | $ 10.36 | |||||
Diluted | $ (0.44) | $ 0.05 | |||||
Weighted-average shares used to compute | |||||||
Basic | 11,659,066 | 465,967 | 4,826,763 | 465,967 | |||
Diluted | 11,659,066 | 465,967 | 984,038,575 | 465,967 | |||
View original content to download multimedia:https://www.prnewswire.com/news-releases/evofem-reports-18-2-million-of-phexxi-net-product-sales-in-2023--302100975.html
SOURCE Evofem Biosciences, Inc.
FAQ
What was the percentage of sales and marketing expense to net sales in Q4 2023?
What was the net product sales for Evofem Biosciences in 2023?
What was the total operating expenses in 2023 compared to the prior year?
How much were the selling and marketing costs reduced by in 2023?
What was the loss from operations in 2023 compared to the prior year?
What was the net product sales for Q4 2023?
What was the liquidity situation of Evofem Biosciences in 2023?
