Why did the stock rise?
Evofem made headlines after the FDA approved Evofem’s (NASDAQ: EVFM) new birth control gel “Phexxi.” Phexxi is an applicator that women insert before sex to prevent pregnancy. The FDA approved the drug through Phase 3 clinical trial, enrolling tests of 1,330 women. Evofem achieved an efficacy rate of 86.3%, which is higher than the trial’s primary goal. The product is offered in the form of a gel, containing citric and lactic acid, which helps to kill off sperms. Evofem’s positive trial results caused a buying frenzy.
Evofem expects to launch Phexxi in September at an expected price of $250, for a box of 12.
History of Evofem:
Evofem started in 2009 with the aim of advancing the lives of women. The biotech wanted to allow each woman to have effective control over their sexual and reproductive health. Saundra Pelletier since 2015, is leading the Evofem. Saundra has more than 25 years of experience in the pharmaceutical industry. She was able to list Evofem on the NASDAQ in 2018. Also, Saundra raised $US270 million through multiple equity financing rounds. Overall, Evofem’s promising progress over the years is due to the excellent leadership of Saundra Pelletier.
Is Evofem worth the investment?
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
I believe Evofem is worth long-term investment as the first non-hormonal gel to prevent pregnancy. (opinion not advice). Phexxi can be conveniently used before sex and it acts as an excellent backup for condoms.
Further, the company is launching Phexxi Concierge Experience alongside Phexxi, a healthcare telemedicine support system. It will provide services such as on-demand educational support and simplify customer’s access to Phexxi. Also customers can secure a prescription, determine their insurance coverage, and receive counselling support.
The risk with Phexxi is the adverse side effects. For example some patients experienced vulvovaginal burning sensation and vulvovaginal pruritus.
Evofem expects to officially announce their FDA approval in their conference call on the 26th May. Thus, we could see Evofem surge even higher on the 26th.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Jaewon Jung , Associate of YIG.