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Evoke Pharma reports significant benefits of GIMOTI in DGP study

Published 28/10/2024, 11:06
EVOK
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SOLANA BEACH, Calif. - Evoke Pharma, Inc. (NASDAQ: NASDAQ:EVOK), in collaboration with EVERSANA, announced results from a study on GIMOTI (metoclopramide nasal spray) at the American College of Gastroenterology (ACG) 2024 Annual Meeting showing substantial benefits for diabetic gastroparesis (DGP) patients using GLP-1 receptor agonists.

The retrospective study compared healthcare resource utilization (HRU) between patients on GIMOTI and those on oral metoclopramide (OMCP), with data indicating significant reductions in all-cause emergency department visits (91%), office visits (41%), and hospital outpatient visits (89%) for the GIMOTI group within a 6-month period.

The study, which received the Presidential Poster Award and the Outstanding Research Award in the Stomach Category at ACG 2024, analyzed a cohort of 92 patients and is the first to demonstrate GIMOTI's potential as supportive care for GLP-1 therapy in DGP management.

Matt D'Onofrio, CEO of Evoke Pharma, highlighted the importance of the findings given the increasing number of patients on GLP-1 agonists for diabetes management and the potential of GIMOTI to alleviate the financial burden on the healthcare system.

The study's outcomes are part of a growing body of evidence suggesting that GIMOTI can significantly reduce HRU in DGP patients. Previous presentations at Digestive Disease Week (DDW) 2024 and ACG 2023 had already shown favorable results in terms of hospitalizations, emergency department visits, and healthcare costs.

Dr. Michael Cline from the Cleveland Clinic, an author of the study, emphasized the advantages of nasal delivery of metoclopramide for patients with delayed gastric emptying, noting improved patient outcomes and reduced healthcare system strain.

Evoke Pharma's commitment to providing data for better DGP management in patients also on GLP-1 therapy is supported by an extended commercialization partnership with EVERSANA, first established in 2020 and renewed in February 2022.

The company, which specializes in developing treatments for gastrointestinal diseases, has positioned GIMOTI as a unique, non-oral therapy for DGP, a condition affecting millions worldwide where the stomach takes too long to empty its contents.

This article is based on a press release statement from Evoke Pharma, Inc.

In other recent news, Evoke Pharma has seen a series of significant developments. The pharmaceutical firm has appointed Benjamin Smeal as a Class II director. Smeal's appointment, facilitated by an agreement with Nantahala Capital Management, will see him serving until the 2027 annual meeting of stockholders. Smeal, a seasoned investor, brings a wealth of experience from roles at Willett Advisors and Kenmare Management.

Evoke Pharma has also secured approximately $3 million from the exercise of existing warrants, which will aid in the commercialization efforts of its flagship product, GIMOTI. Following this, the company amended terms with warrant holders, expecting to generate $2.4 million in gross proceeds. As a result of these exercises, Nantahala Capital Management has earned the right to nominate two members to Evoke Pharma's board of directors.

The company has also extended the lease for its headquarters in Solana Beach, California, until March 2027. These developments reflect Evoke Pharma's ongoing adjustments to its financial instruments and corporate structure.

InvestingPro Insights

Evoke Pharma's recent study results on GIMOTI present a promising outlook for the company's future revenue growth. According to InvestingPro data, Evoke Pharma's revenue growth in the last twelve months as of Q2 2024 was an impressive 110.79%, with quarterly revenue growth in Q2 2024 reaching 125.51%. These figures align with the positive clinical outcomes reported for GIMOTI and suggest potential for continued market expansion.

InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which is consistent with the company's recent performance and the positive reception of GIMOTI in the medical community. Additionally, Evoke Pharma is trading at a low revenue valuation multiple, which could indicate an opportunity for investors considering the company's growth prospects.

However, it's important to note that despite the strong revenue growth, Evoke Pharma is not currently profitable. The company's operating income margin for the last twelve months as of Q2 2024 stands at -82.6%, reflecting the ongoing investments in research and commercialization efforts for GIMOTI.

For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Evoke Pharma, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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