Friday’s overturning of Roe vs. Wade has thrust contraceptive producer Evofem Biosciences (NASDAQ:EVFM) into the spotlight. EVFM stock is skyrocketing as contraception makers come into focus.
Evofem Biosciences is a little-known company in the biotech space. It emphasizes that its mission is “to empower women by providing products that give women the control and flexibility they desire.” After shooting higher in pre-market trading, EVFM stock has surged more than 160% today and looks poised to rise even higher.
After a month of hovering between 30 cents and 40 cents, shares are about to break $1. This gain is significant and it warrants a closer look as analysts assess EVFM.
EVFM Stock and Roe vs. Wade
It makes sense that a contraceptive producer is surging after Friday’s news. But EVFM has gained much more than other players in this space. Church & Dwight (NYSE:CHD), the owner of condom maker Trojan, is only up 0.4% today and Dare Bioscience (NASDAQ:DARE), another reproductive health specialist, has only risen 11%.
Investors may be reacting so positively to Evofem due to its lead product. In 2020 it developed Phexxi, a “lactic acid, citric acid and potassium bitartrate vaginal gel” with full approval from the U.S. Food and Drug Administration (FDA). Evofem describes it as “a first-in-class hormone-free, on-demand prescription contraception that a woman can control.”
Evofem’s webpage states the following:
Fulfilling a critical unmet need in the contraceptive space, Phexxi provides an FDA-approved localized option designed for women to use at their discretion 0-60 minutes prior to each act of intercourse.
It also describes Phexxi as “a hormone-free birth control women have been waiting for.” Recent statistics back that statement up. Evofem reports that prescriptions for Phexxi increased by 69% in the fourth quarter of 2021 when 22,600 individuals began using it. In January 2022, the Health Resources and Services Administration (HRSA) and the U.S. Department of Labor issued new guidance. Under it, most insurers and pharmacy benefit managers are required to provide contraceptive coverage to people at “no out-of-pocket cost.” At the time, Evofem said this would expand access to Phexxi.
What It Means
Now that the Supreme Court has overturned Roe vs. Wade, it seems investors are betting on new demand for contraception.
Evofem isn’t the only contraceptive producer whose shares will rise in this scenario. However, its impressive rally today and unique product make it worth watching.
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On the date of publication, Samuel O’Brient 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.