Evofem Biosciences, Inc., a biopharmaceutical company based in San Diego, California, focuses on women's sexual and reproductive health, primarily through its FDA-approved product, Phexxi, a non-hormonal contraceptive gel. Since its commercial launch in September 2020, Phexxi has experienced consistent net sales growth, achieving $16.8 million in 2022 and $18.2 million in 2023. For the three months ended September 30, 2024, Phexxi generated net product sales of $4.5 million, a 12% decrease from $5.1 million in the same period of 2023. For the nine months ended September 30, 2024, total sales were $12.3 million, down 8% from $13.4 million in 2023, attributed to timing of price increases affecting sales volumes.

The company has made strategic moves to enhance its market presence, including licensing exclusive commercial rights to Phexxi in the Middle East to Pharma 1 Drug Store, LLC, and acquiring global rights to SOLOSEC, an FDA-approved treatment for bacterial vaginosis and trichomoniasis, in July 2024. The acquisition of SOLOSEC is expected to leverage existing commercial infrastructure and physician relationships, enhancing Evofem's product offerings in women's health.

Evofem's financial performance shows a significant reduction in operating expenses, which totaled $6.9 million for the three months ended September 30, 2024, down from $8.7 million in the prior year. This reduction is primarily due to decreased selling and marketing expenses and lower research and development costs, reflecting a strategic shift to focus on Phexxi sales growth. The company reported a loss from operations of $2.4 million for the third quarter of 2024, an improvement from a loss of $3.6 million in the same quarter of 2023.

Despite these improvements, Evofem continues to face financial challenges, reporting a net loss of $2.4 million for the three months ended September 30, 2024, compared to a substantial net income of $66.0 million in the same period of 2023, which was largely due to gains from financial instruments. The company’s total liabilities increased to $90.1 million as of September 30, 2024, from $72.5 million at the end of 2023, while total stockholders’ deficit rose to $(70.9 million).

Evofem's liquidity remains a concern, with cash and cash equivalents of approximately $0.7 million as of September 30, 2024, entirely restricted. The company has expressed substantial doubt about its ability to continue as a going concern, emphasizing the need for additional funding to support its operations and strategic plans. Management aims to meet cash flow needs through product revenue, restructuring payables, and seeking further financing.