EVFM Stock Heats Up Following ‘Huge Win.’ 7 Things to Know.

Today’s price action for Evofem Biosciences (NASDAQ:EVFM) has certainly been a welcome sight for long-term investors in EVFM stock. A women’s health biopharma company focusing on birth control products, Evofem has been under serious pressure in recent years.

A pile of brightly colored pills in varying sizes and shapes.
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Like many biopharma companies, Evofem has found difficulty in successfully growing the market share for its core products. Among the core products investors have looked to for growth is the company’s Phexxi vaginal gel. This gel works as a contraceptive and is an alternative to more traditional birth control options. In addition to Phexxi, the company has a number of other interesting products under development. These include EVO100, an antimicrobial vaginal gel aimed at preventing the transmission of various sexually transmitted infections.

Unfortunately for Evofem, the company’s products have hit regulatory hurdles. However, today, the market is pricing in a potential reversal of the company’s fortunes.

Let’s dive into what’s taking EVFM stock on a nice ride today.

EVFM Stock Surges on Updated Federal Guidelines

Today, Evofem announced that new federal guidelines proposing that payers provide contraceptives that were approved by the U.S. Food and Drug Administration (FDA), such as Phexxi, with no out-of-pocket expenses could boost the outlook for the company’s product line. Analysts pointed to this announcement as a key catalyst for the company, given the reluctance from certain payers to cover Phexxi.

Given the opaqueness of existing regulations, some payers have denied alternative contraceptive options on the grounds the other proven methods must be tried first. Additionally, despite various Affordable Care Act (ACA) rules requiring birth control to be offered at zero cost to women, in actual practice, this appears to not be the case.

Investors appear to be bullish on Evofem’s negotiating power with payers for coverage. As a result of this updated guidance, it’s expected the market for products like Phexxi could become much more substantial. For those looking at high-upside plays in the biopharma space, EVFM stock is piquing many investors’ interests today.

How everything plays out from here remains to be seen. However, this is a positive initial step for Evofem. Accordingly, this is a stock with momentum today that traders may be focusing in on over the coming days.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/evfm-stock-heats-up-following-huge-win-7-things-to-know/.

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