Evofem Biosciences Reports $8.9 Million Net Loss for 2024 Amid Revenue Growth and Ongoing Legal Disputes

Evofem Biosciences, Inc. reported a net loss of $8.9 million for the year ended December 31, 2024, compared to a net income of $50 million in 2023. The significant change is primarily attributed to a $75.3 million gain on debt extinguishment in 2023, which was not replicated in 2024. Net product sales increased by approximately 7% to $19.4 million in 2024, driven by a January 2024 price increase for PHEXXI, improved gross-to-net ratio, and the addition of SOLOSEC revenue starting mid-July 2024. Cost of goods sold decreased by 41% to $3.8 million, mainly due to reduced repackaging costs and a lack of inventory write-downs seen in 2023.

Operating expenses decreased across all categories in 2024 compared to 2023. Research and development expenses fell by 37% to $1.8 million, reflecting a decrease in personnel and clinical costs. Selling and marketing expenses declined by 21% to $9.2 million, primarily due to reduced marketing and DTC promotion costs and lower personnel expenses. General and administrative expenses decreased by 23% to $11.6 million, mainly due to lower facilities and outside services costs. Other income (expense), net, resulted in a net loss of $1.2 million in 2024, compared to a net gain of $70.8 million in 2023, largely due to the absence of the significant gain on debt extinguishment in 2024.

Significant developments during the year included the July 2024 acquisition of global rights to SOLOSEC, an FDA-approved single-dose oral antimicrobial agent for bacterial vaginosis and trichomoniasis. Evofem also licensed commercial rights to PHEXXI in the Middle East to Pharma 1 Drug Store, LLC in July 2024. The company's sales force consisted of 16 regional sales representatives as of March 14, 2025, supported by a telehealth platform for direct patient access to PHEXXI. The company halted all clinical development in October 2022 to focus on commercialization efforts.

Evofem's commercial strategy for PHEXXI targets women not using hormonal contraception and those seeking alternatives, including those using GLP-1 medications. For SOLOSEC, the strategy focuses on approximately 3,000 OB/GYNs, leveraging existing physician relationships. The company's payer and reimbursement strategy involves ongoing efforts to improve formulary positioning and secure additional coverage for both PHEXXI and SOLOSEC. As of December 31, 2024, approximately 83% of commercial and Medicaid PHEXXI prescriptions were approved by payers.

The company's 10-K filing notes substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and a working capital deficit of $66.8 million as of December 31, 2024. The company's plans to address this include generating revenue from PHEXXI and SOLOSEC, restructuring payables, and seeking additional funding through equity or debt financing, collaborations, or partnerships. The company's audited consolidated financial statements include an explanatory paragraph regarding substantial doubt about its ability to continue as a going concern. The company also notes ongoing legal disputes, including a Notice of Default from its largest creditor, Future Pak, LLC, and an ongoing dispute with TherapeuticsMD regarding the PHEXXI trademark. The company is currently working on a rebrand of PHEXXI to resolve the TherapeuticsMD dispute.