Evofem Reports $18.2 million of Phexxi Net Product Sales in 2023
-- Third Consecutive Year of Phexxi Net Sales Growth --
-- Total Operating Expense Reduced 64% from 2022 Levels --
-- Sales and marketing expense as a percentage of net sales was 54% for the fourth quarter of 2023, the most favorable ratio since the Phexxi launch --
- Delivered
$18.2 million of Phexxi net product sales in 2023, an impressive increase compared to 2022 given the 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 ofAditxt , 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
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 withMedi-Cal of the Phexxi rebate; effectiveJuly 2024 Evofem will pay a 7.4% lower rebate on Phexxi prescriptions fromMedi-Cal .
Full Year Financial Results
For the year ended
Total operating expenses were
- We reduced selling and marketing costs by 73%, from
$44.0 million in 2022 to $11.7 million in 2023. We lowered outside services, facilities and media, and marketing costs by$18.9 million , and reduced personnel costs by$12.1 million through theNovember 2022 andMarch 2023 reductions in force, including elimination of the Chief Commercial Officer role. - 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 million in 2022 to$2.9 million in 2023. - We reduced our general and administrative costs by 46% from
$27.6 million in 2022 to$15.0 million in 2023.
As a result, loss from operations improved to
Fourth Quarter Financial Results
For the three months ended
Total operating expenses were
Sales and marketing expense as a percentage of net sales was 54% for the fourth quarter of 2023, the most favorable ratio since the Phexxi launch in 2020.
As a result, loss from operations improved to $3.4 million, compared to a loss from operations of $12.1 million in the fourth quarter of 2022.
Liquidity
In 2023, Evofem made
As of
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, 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
Investor Contact
araskopf@evofem.com
Mobile: (917) 673-5775
Financial tables follow
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except par value and share data) |
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As of |
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2023 |
|
2022 |
Assets |
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Current assets: |
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|
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 |
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|
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Total liabilities, convertible and redeemable preferred stock |
$ 10,554 |
|
$ 25,163 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) |
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Three Months Ended |
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Years Ended |
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2023 |
|
2022 |
|
2023 |
|
2022 |
Product sales, net |
$ 4,839 |
|
$ 181 |
|
$ 18,218 |
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|
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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 |
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Net income (loss) per share attributable to |
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Basic |
$ (0.44) |
|
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|
$ 10.36 |
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Diluted |
$ (0.44) |
|
|
|
$ 0.05 |
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Weighted-average shares used to compute |
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Basic |
11,659,066 |
|
465,967 |
|
4,826,763 |
|
465,967 |
Diluted |
11,659,066 |
|
465,967 |
|
984,038,575 |
|
465,967 |
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