Evofem Biosciences Inc. (NASDAQ:EVFM) Stock Attempts To Bounce From Lows: But Why?
Evofem Biosciences Inc. (NASDAQ:EVFM) was up 5% after the company announced the successful extension of the cumulative net sales covenant timing of the April 2020 Securities Purchase and Securities Agreement to June 30, 2023.
Market Stats
On Monday, EVFM stock jumped 4.61% at $0.4812 with more than 5.99 million shares, compared to its average volume of 3.15 million shares. The stock has moved within a range of $0.4500 – 0.5012 after opening trading at $0.49.
Successfully Extends Cumulative Net Sales Covenant Timing to June 30, 2023
CEO Saundra Pelletier said that they acknowledge that the healthcare investors see long-term growth potential, which necessitated the extension of the net sales covenant to June 2023.
More than 19,000 Phexxi prescriptions were filled in the third quarter, reflecting a 48% increase from the previous quarter. In October, the company reported filling 10,000 Phexxi prescriptions representing a 30% increase for September, implying a strong quarter for Phexxi prescriptions.
Notably, ex-factory Phexxi sales, including shipments to wholesalers, grew 19% month over month.
Pelletier concluded that the robust Phexxi demand and forthcoming improvements in the company’s patient support program would lead to improvements in net and gross to net revenue as from December 2021, which is an achievable timeframe. Therefore in the coming weeks, investors should watch EVFM.
Key Quote
“We appreciate that these healthcare investors see the potential for long term growth. As a result, we agreed to extend the cumulative net sales covenant timing to June 30, 2023,” said Saundra Pelletier, CEO of Evofem Biosciences.
Traders Corner
EVFM stock is trading below the 20-Day and 50-Day Moving averages of $0.61 and $0.70 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.36. The stock is down 31% in the past month.
