EVOFEM BIOSCIENC(EVFM) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Highlights and Business Update Evofem Biosciences achieved net sales growth and improved operating loss in Q2 2025, demonstrating positive financial performance Financial Performance Highlights Evofem Biosciences achieved net sales growth and improved operating loss in Q2 2025, demonstrating positive financial performance | Metric | Q2 2025 | Q2 2024 | Change | | :------------------- | :-------- | :-------- | :--- | | Net Sales | $4.8 million | $4.2 million | +14.3% | | Operating Loss | $1.3 million | $1.4 million | Improved | Strategic Business Developments The company made significant progress in product cost optimization, international market expansion, marketing, and clinical trials - The company is pursuing a strategy to reduce manufacturing costs for PHEXXI and SOLOSEC by approximately 50%, aiming to increase unit margins and facilitate entry into price-sensitive global markets[2] - PHEXXI's marketing application has been submitted in the UAE through licensee Pharma 1 Drug Store, with SOLOSEC's application planned for Q3 2025, targeting six Middle Eastern countries and potential expansion to 15 other MENA countries[2] - PHEXXI gained significant brand awareness through viral content on TikTok, achieving over 7 million views and 24,000+ comments[2] - SOLOSEC is undergoing an NIH-funded Phase 4 clinical trial to evaluate its efficacy and cost-effectiveness in treating trichomoniasis[2] - SOLOSEC demonstrated effectiveness in treating recurrent bacterial vaginosis (BV) with once-weekly dosing, showing recurrence rates comparable to or better than CDC-recommended suppressive therapy at the 2025 ACOG Annual Meeting[6] - Evofem launched the "Say Vagina Month" public awareness campaign to destigmatize vaginal health and advocate for medically accurate, empowering language, which generated strong social media engagement and a 250% increase in unique visitors to Phexxi.com in the first week[6] CEO Commentary CEO Ms. Pelletier noted a rebound in Q2 net sales and anticipates further brand awareness and sales growth from Q3 social media marketing - CEO stated that Q2 net sales rebounded, increasing by 16% compared to the prior year period[3] - Bold social media marketing campaigns and media coverage in Q3 are expected to translate into higher PHEXXI awareness, conversion, and sales[3] Detailed Second Quarter Financial Results This section provides a detailed breakdown of the company's financial performance for the second quarter Net Sales Analysis Q2 2025 net sales increased by 16% year-over-year, driven by SOLOSEC, higher PHEXXI WAC, and improved gross-to-net percentage | Metric | Q2 2025 (thousand dollars) | Q2 2024 (thousand dollars) | Year-over-Year Growth | | :----------- | :---------------- | :---------------- | :------- | | Net Sales | 4,825 | 4,160 | 16.0% | - Net sales growth was primarily attributed to the inclusion of SOLOSEC, an increase in PHEXXI's wholesale acquisition cost (WAC) effective January 1, 2025, and continued improvement in the gross-to-net percentage[4] Operating Expenses Breakdown Total operating expenses increased in Q2 2025 due to higher sales and marketing and R&D costs related to SOLOSEC, partially offset by reduced G&A expenses | Metric | Q2 2025 (thousand dollars) | Q2 2024 (thousand dollars) | Change (thousand dollars) | | :-------------------- | :---------------- | :---------------- | :------------ | | Total Operating Expenses | 6,076 | 5,549 | +527 | | Sales and Marketing Expenses | 2,625 | 2,243 | +382 | | Research and Development Expenses | 746 | 270 | +476 | | General and Administrative Expenses | 1,843 | 2,267 | -424 | | Amortization of Intangible Assets | 107 | - | +107 | - The increase in sales and marketing expenses was primarily related to the payment of Prescription Drug User Fee Act (PDUFA) fees for SOLOSEC, while the increase in R&D expenses was also related to SOLOSEC, acquired in Q3 2024[7] - A non-cash amortization expense of $0.1 million related to the SOLOSEC acquisition was recorded in Q2 2025, with no comparable expense in the prior year period[7] Net Loss and Per Share Data The company improved its operating loss in Q2 2025, but a decrease in other income led to an increased net loss attributable to common stockholders | Metric | Q2 2025 (thousand dollars) | Q2 2024 (thousand dollars) | Change (thousand dollars) | | :--------------------------------- | :---------------- | :---------------- | :------------ | | Operating Loss | (1,251) | (1,389) | Improved 138 | | Net Income (Loss) Attributable to Common Stockholders | (1,785) | 1,304 | Decreased 3,089 | | Basic and Diluted Net Income (Loss) Per Share | $(0.02) | $0.02 (Basic) / $(0.00) (Diluted) | Decreased | Liquidity and Corporate Strategy This section outlines the company's financial liquidity position and its strategic plans, including a pending merger Liquidity Position As of June 30, 2025, the company maintained stable cash and cash equivalents and raised funds through senior subordinated notes and warrants | Metric | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :-------------------- | :--------------------- | :---------------------- | | Cash and Cash Equivalents | - | - | | Restricted Cash | 748 | 741 | - In April and June 2025, Evofem raised $2.4 million in net proceeds through the sale of senior subordinated notes and warrants to Aditxt, Inc[9] Aditxt Merger Agreement Evofem is advancing its merger with Aditxt, expecting to become a wholly-owned subsidiary upon shareholder approval and fulfillment of closing conditions - Evofem is proceeding with plans to convene a special meeting of stockholders to approve the Amended and Restated Merger Agreement (A&R Merger Agreement), with Evofem expected to become a wholly-owned subsidiary of Aditxt upon approval and satisfaction of all closing conditions[9][14] - The completion of the merger transaction is contingent on several conditions, including Evofem stockholder approval and Aditxt raising sufficient funds to fulfill its closing obligations, specifically paying approximately $15 million to satisfy cash payments to Evofem's senior secured noteholders[16] Company and Product Information This section provides an overview of Evofem Biosciences, its product portfolio, and its market expansion strategies About Evofem Biosciences Evofem Biosciences commercializes innovative products for women's sexual and reproductive health, with revenue from two FDA-approved products - Evofem Biosciences is dedicated to commercializing innovative products addressing unmet needs in women's sexual and reproductive health[11] - The company's revenue is derived from the sale of two FDA-approved products[11] Product Portfolio Overview Evofem's portfolio includes PHEXXI, a hormone-free, on-demand contraceptive vaginal gel, and SOLOSEC, an FDA-approved single-dose oral antibiotic for BV and trichomoniasis - PHEXXI (lactic acid, citric acid, and potassium bitartrate) is the first and only hormone-free, on-demand prescription vaginal gel for contraception[13] - SOLOSEC® (secnidazole) 2g oral granules is an FDA-approved oral antibiotic for the treatment of bacterial vaginosis (BV) and trichomoniasis, offering a single-dose complete course of therapy[13] Market Expansion and Commercial Strategy The company is actively expanding globally by promoting SOLOSEC and PHEXXI to OB/GYNs in the US and through licensing agreements in international markets - Evofem's commercial team relaunched SOLOSEC in November 2024, promoting it alongside PHEXXI to OB/GYNs in the United States[12] - The company is entering global markets through licensing agreements with companies like Pharma 1 Drug Store LLC, with PHEXXI and SOLOSEC anticipated to launch in the UAE in 2026[12] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated balance sheets and statements of operations Condensed Consolidated Balance Sheets As of June 30, 2025, the balance sheet shows zero cash and cash equivalents, stable restricted cash, decreased net trade receivables, and improved total liabilities and shareholder deficit | Metric | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :------------------------------------------------- | :--------------------- | :---------------------- | | Cash and Cash Equivalents | - | - | | Restricted Cash | 748 | 741 | | Trade Accounts Receivable, Net | 4,934 | 9,832 | | Total Current Liabilities | 73,893 | 80,448 | | Total Stockholders' Deficit | (69,616) | (71,257) | | Total Liabilities, Convertible and Redeemable Preferred Stock, and Stockholders' Deficit | 14,382 | 23,789 | Condensed Consolidated Statements of Operations In Q2 2025, net sales increased and operating loss narrowed, but a decrease in other income (primarily fair value changes in financial instruments) led to an increased net loss | Metric | Q2 2025 (thousand dollars) | Q2 2024 (thousand dollars) | H1 2025 (thousand dollars) | H1 2024 (thousand dollars) | | :--------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Net Product Sales | 4,825 | 4,160 | 5,670 | 7,763 | | Cost of Sales | 755 | 769 | 1,120 | 1,453 | | Amortization of Intangible Assets | 107 | - | 330 | - | | Research and Development Expenses | 746 | 270 | (4,289) | 864 | | Sales and Marketing | 2,625 | 2,243 | 5,225 | 4,588 | | General and Administrative | 1,843 | 2,267 | 4,208 | 5,091 | | Total Operating Expenses | 6,076 | 5,549 | 6,594 | 11,996 | | Operating Loss | (1,251) | (1,389) | (924) | (4,233) | | Other Income (Expense), Net | (526) | 2,748 | 103 | 783 | | Net Income (Loss) | (1,784) | 1,351 | (828) | (3,458) | | Net Income (Loss) Attributable to Common Stockholders | (1,785) | 1,304 | (832) | (3,552) | | Basic Net Income (Loss) Per Share | (0.02) | 0.02 | (0.01) | (0.07) | | Diluted Net Income (Loss) Per Share | (0.02) | (0.00) | (0.01) | (0.07) | Important Disclosures and Contact Information This section provides crucial legal disclosures regarding forward-looking statements, offers, and company contact details Forward-Looking Statements This press release contains forward-looking statements about future events and financial performance, subject to risks and uncertainties that may cause actual results to differ materially - This press release contains forward-looking statements regarding the anticipated impact of social media activities and media coverage, the timing of PHEXXI and SOLOSEC approval and launch in the UAE, and the filing of proxy materials for the special meeting of stockholders[16] - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed or implied, with the company undertaking no obligation to update any forward-looking statements unless required by law[16] No Offer or Solicitation This press release does not constitute a solicitation of proxy, consent, or authorization for any securities, nor an offer to sell or buy any securities - This press release does not constitute a solicitation of proxy, consent, or authorization with respect to any securities, nor an offer to sell or a solicitation of an offer to buy any securities[18] Company Contacts Contact information for media, investors, and potential partners is provided, along with the company's social media presence - The company maintains official accounts on social media platforms including LinkedIn, TikTok, Instagram, X, and Facebook[19] - Media inquiries can be directed to media@evofem.com, while investors and potential partners can contact Amy Raskopf, Chief Business Development Officer[19]