Evoke Pharma Reports Improved Financials, Increased Cash and Cash Equivalents, and Growing Net Product Sales

Evoke Pharma, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on the development and commercialization of drugs for gastrointestinal disorders, particularly its product Gimoti® (metoclopramide nasal spray), has shown notable improvements in its financial position compared to the previous fiscal period.

As of September 30, 2024, Evoke's cash and cash equivalents stood at approximately $11.3 million, a substantial increase from $4.7 million at the end of 2023. Total current assets also rose to $14.0 million from $6.8 million, while total assets increased to $14.2 million from $7.1 million. Notably, stockholders' equity shifted from a deficit of $(2.6 million) at the end of 2023 to a positive $4.4 million by September 30, 2024.

Net product sales for the three months ended September 30, 2024, reached $2.7 million, a 70% increase from $1.6 million in the same period of 2023. For the nine months ended September 30, 2024, net product sales totaled $6.9 million, nearly doubling from $3.5 million in the prior year. This growth is attributed to increased adoption of Gimoti and a broader prescribing base. However, the company reported a net loss of $(1.3 million) for the quarter, an improvement from $(1.7 million) in the same quarter of 2023, and a net loss of $(4.2 million) for the nine months, down from $(5.8 million) year-over-year.

Operating expenses reflected a mixed trend; research and development expenses significantly decreased to $16,322 for the nine months ended September 30, 2024, from $159,347 in the same period of 2023, while selling, general, and administrative expenses rose to $10.7 million from $8.7 million, driven by increased marketing and personnel costs.

Evoke's financial maneuvers included a successful equity financing in February 2024, yielding net proceeds of $6.2 million, and a series of warrant amendments that generated additional cash. The company also faced challenges, including a loan obligation of $7.0 million to Eversana, which is due within 90 days if the commercial services agreement is terminated.

In terms of compliance, Evoke regained compliance with Nasdaq's minimum stockholders' equity requirement in June 2024 after a reverse stock split executed in August 2024. The company continues to navigate operational challenges while focusing on the commercialization of Gimoti, which has shown promising results in reducing healthcare costs for patients with diabetic gastroparesis.