SAN DIEGO - Evofem Biosciences, Inc. (OTCQB: OTC:EVFM) is on the cusp of obtaining its fifth US patent for Phexxi, a hormone-free contraceptive gel, following a Notice of Allowance from the United States Patent and Trademark Office (USPTO). This latest development is expected to bolster the company's intellectual property portfolio once the formalities are concluded.
The allowed claims pertain to the methods of contraception using Phexxi's (lactic acid, citric acid, and potassium bitartrate) vaginal gel composition. The anticipated patent is projected to be listable in the FDA's Orange Book, a directory of approved drug products with therapeutic equivalence evaluations.
Phexxi represents a novel approach to contraception, being the first and only FDA-approved, locally-acting contraceptive gel that does not contain hormones. It functions by maintaining the vagina's natural biome and an inhospitable pH level to sperm. Phexxi is applied within an hour before sexual intercourse.
Evofem's CEO, Saundra Pelletier, expressed satisfaction with the USPTO's decision, underscoring Phexxi's contribution to innovation in contraceptive methods and women's autonomy in preventing unintended pregnancies.
Since its market introduction in 2020, Phexxi has seen a consistent rise in sales. The product's growth in 2024 is partly attributed to its use among women who are on oral contraceptives and GLP-1 agonists, such as Mounjaro and Zepbound, which can reduce the effectiveness of birth control pills during certain dosing periods. Phexxi serves as a recommended supplemental contraceptive method during these times.
Evofem Biosciences focuses on commercializing products that address unmet needs in women's sexual and reproductive health.
This article is based on a press release statement from Evofem Biosciences, Inc.
InvestingPro Insights
As Evofem Biosciences (OTCQB: EVFM) advances its position in the women's health market with the anticipated patent for Phexxi, a non-hormonal contraceptive gel, investors and industry observers are closely monitoring the company's financial health and stock performance. According to real-time data from InvestingPro, Evofem has a market capitalization of just $0.71 million, reflecting the small size of the company in comparison to its peers in the biopharmaceutical sector.
Despite the promising prospects of Phexxi, InvestingPro Tips highlight some financial challenges for Evofem. The company is grappling with a significant debt burden and is rapidly burning through cash. These factors are critical for potential investors to consider, as they may impact the company's ability to sustain operations and fund further development of its products. Additionally, analysts do not anticipate the company will be profitable this year, which could be a point of concern for those looking at the long-term viability of Evofem.
On the performance front, the stock has experienced considerable volatility, with the price having fallen significantly over the last year. Specifically, the one-year price total return as of this period is a staggering -99.64%, indicating a tumultuous period for shareholders. This volatility is further underscored by a recent price total return of -14.2% over the past week, suggesting that the stock's movements are not for the faint-hearted.
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