Evofem Biosciences (NASDAQ:EVFM) shocked investors yesterday after the overturning of Roe vs. Wade thrust contraceptives into the national spotlight. This new focus on its contraceptive products has sent the little known biotech company’s stock skyrocketing more than 160% in only one day. EVFM stock has been incredibly turbulent, rising 10% this morning before dipping again. As of this writing, it is down around 5% for the day.
Less than two days into the week, Evofem already has an exciting catalyst to report. The company has reached a deal with one of the country’s most prominent pharmacy benefits managers (PBM) to expand access to Phexxi. This means that even more women will have access to the company’s hormone free contraceptive.
Evofem Is Growing Fast — EVFM Stock Will Too
Phexxi is a “first-in-class hormone-free, on-demand prescription contraception that a woman can control” according to Evofem’s website. As reported yesterday, the product’s strong appeal to women has helped EVFM outperform its larger competitors with dynamic holdings such as Church and Dwight (NYSE:CHD). Now Evofem is poised to put its product in the hands of even more women. And it comes at a time when the demand for contraceptives has never been higher.
The company’s CEO is understandably excited about the new deal. CEO Saundra Pelletier stated the following:
This new agreement removes existing barriers, allowing women in the U.S. covered by this plan to fill their Phexxi prescriptions immediately. We have already seen a significant increase in the profitability of each Phexxi prescription this year, and we look forward to further prescription growth while providing millions of more women with barrier-free access to Phexxi.
The good news doesn’t stop there. According to the statement released by Evofem, the company estimates that it will save “close to $1 million on an annualized basis” with savings of $400,000 in 2022 alone. The statement also emphasizes that Evofem is focused on increasing the access of more women to Phexxi through other health insurers and PBM partnerships.
These new partners who now provide access Phexxi now include some of the largest payers in California, Utah and Hawaii. It also includes “numerous state Medicaid systems providing coverage for more than 12 million lives with no prior authorization.”
All this is excellent news for EVFM stock. Although shares have been turbulent today, they should stabilize and start moving upward as Wall Street takes notice of the company.
The Bottom Line
It can be hard for large scale investors to trust a microcap play like EVFM stock. But current trends strongly indicate that is is a name that everyone should be watching.
Evofem makes a product that is about to see a significant spike in demand and it is already maneuvering to get its flagship product into the hands of as many customers as possible. It is a stock that will see more and more traction as retail investors flag it as a name with significant potential.
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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.