Finally, Some Good News for Evofem Biosciences
On May 22, the Food and Drug Administration announced approval of Evofem Biosciences' (NASDAQ: EVFM) novel contraceptive gel Phexxi. This was a very big deal for a company that has no products on the market and has been operating at a loss since its IPO in 2014. After markets closed on Friday, shares traded up to about $8 on the news, bringing Evofem's market cap to almost $400 million. However, as of May 27, shares are back down near $6.
Currently, about 65% of women ages 15 to 49 in the U.S. reported using some form of contraception in the month they were interviewed by the Centers for Disease Control and Prevention, which is a gigantic opportunity for the company to tackle. Let's take a look at what Phexxi is and how it can generate sales for Evofem, and in turn, make shareholders rich.
Image source: Getty Images.
Phexxi is a prescription gel composed of citric acid (found in lemon juice), lactic acid (found in milk), and potassium bitartrate (known in cooking as cream of tartar) that is inserted into the vagina shortly before intercourse to prevent pregnancy. After use, the compound maintains pH inside the vagina to between 3.5 to 4.5, which is too inhospitable for sperm to survive.
Source Fool.com
