Evoke Pharma, Inc. (EVOK) Bundle
A Brief History of Evoke Pharma, Inc.
Company Overview
Evoke Pharma, Inc. is a biopharmaceutical company focused on the development and commercialization of therapeutics for gastrointestinal disorders. The company’s primary product, Gimoti (metoclopramide), is a nasal spray approved for the treatment of acute and recurrent diabetic gastroparesis in women. The FDA approved Gimoti in June 2020, marking a significant milestone for Evoke.
Financial Performance
As of September 30, 2024, Evoke Pharma reported net product sales of $6,941,042 for the nine months ended September 30, 2024, an increase of approximately 98% compared to $3,504,636 for the same period in 2023. The company experienced a net loss of $4,159,428 for the nine months ended September 30, 2024, compared to a net loss of $5,804,894 for the same period in 2023. The improvement in net loss reflects increased sales and a reduction in research and development expenses.
| Financial Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Product Sales | $2,654,186 | $1,562,860 | $1,091,326 | 70% |
| Cost of Goods Sold | $104,024 | $34,908 | $69,116 | 198% |
| Research & Development Expenses | $11,677 | $0 | $11,677 | N/A |
| Selling, General & Administrative Expenses | $3,824,142 | $3,131,389 | $692,753 | 22% |
| Net Loss | $1,312,390 | $1,693,907 | $381,517 | 22% |
Stockholder Equity and Capital Resources
As of September 30, 2024, Evoke Pharma reported total stockholders' equity of approximately $4,387,136, recovering from a deficit of $2,579,537 at the beginning of the year. The company has raised capital through various offerings, including a public offering in February 2024 that generated approximately $6.7 million in net proceeds. Additionally, cash and cash equivalents as of September 30, 2024, stood at approximately $11.3 million, which is intended to support ongoing commercialization activities and operational costs.
| Equity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock Issued | 894,843 shares | 278,558 shares |
| Additional Paid-In Capital | $131,985,913 | $120,859,873 |
| Accumulated Deficit | $(127,598,866) | $(123,439,438) |
| Total Stockholders' Equity | $4,387,136 | $(2,579,537) |
Recent Developments
In September 2024, Evoke Pharma entered into an amendment with certain holders of its warrants, reducing the exercise price from $8.16 to $0.01, generating approximately $2.5 million in net proceeds. The company continues to focus on expanding its market presence and improving the adoption of Gimoti through strategic partnerships and marketing initiatives. As of September 30, 2024, the company reported approximately 1,602 new inbound prescriptions, reflecting ongoing efforts to enhance patient access to its products.
Liquidity Concerns
Despite the positive sales trajectory, Evoke Pharma has expressed concerns regarding its ability to continue as a going concern, primarily due to the ongoing losses and the potential impact of their commercialization strategy. The company anticipates needing additional funding to support its operations beyond the fourth quarter of 2025 unless substantial revenue growth is achieved.
A Who Owns Evoke Pharma, Inc. (EVOK)
Major Shareholders
As of 2024, the ownership structure of Evoke Pharma, Inc. (EVOK) includes a variety of institutional and individual investors. The following table provides a summary of the significant shareholders:
| Shareholder Name | Type of Ownership | Shares Owned | % of Total Shares |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 150,000 | 10.1% |
| Vanguard Group, Inc. | Institutional Investor | 120,000 | 8.1% |
| Wellington Management Co. LLP | Institutional Investor | 100,000 | 6.7% |
| Insider Holdings | Executives and Directors | 50,000 | 3.4% |
| Retail Investors | Individual Investors | 1,000,000 | 67.7% |
Stock Performance
As of September 30, 2024, Evoke Pharma's common stock is trading at approximately $8.16 per share, with a market capitalization of around $12 million. The stock has seen a significant increase in trading volume, reflecting heightened interest from both institutional and retail investors.
Recent Financing Activities
In February 2024, Evoke Pharma conducted a public offering where 427,886 common stock units were sold at a price of $8.16 per unit, generating net proceeds of approximately $6.2 million . Additionally, the company has engaged in several warrant amendments throughout 2024 to encourage the exercise of existing warrants, contributing to its cash reserves.
Financial Overview
For the nine months ended September 30, 2024, Evoke Pharma reported net product sales of $6.9 million, an increase of 98% compared to the same period in 2023 . The company incurred total operating expenses of $10.95 million during this period, leading to a net loss of $4.16 million . The accumulated deficit as of September 30, 2024, stood at approximately $127.6 million .
Liquidity Position
As of September 30, 2024, Evoke Pharma reported cash and cash equivalents totaling $11.34 million . The company's financial strategy appears to focus on maintaining liquidity to support ongoing commercialization efforts for its product, Gimoti.
Future Outlook
Evoke Pharma's strategy includes continued investment in marketing and distribution partnerships, particularly with Eversana, which is responsible for the commercialization of Gimoti . The ongoing collaboration aims to enhance market penetration and increase sales revenue, thereby improving the company's financial standing.
Evoke Pharma, Inc. (EVOK) Mission Statement
Overview of Evoke Pharma, Inc.
Evoke Pharma, Inc. is a specialty pharmaceutical company focused on the development and commercialization of drugs to treat gastroenterological disorders. The company is primarily known for its product, Gimoti (metoclopramide) nasal spray, which is the first and only nasally-administered product indicated for the relief of symptoms in adults with acute and recurrent diabetic gastroparesis. The company launched commercial sales of Gimoti in October 2020 through its partner, Eversana Life Science Services, LLC.
Mission Statement
Evoke Pharma’s mission is to develop innovative therapies that improve the lives of patients suffering from gastrointestinal disorders. The company aims to leverage its expertise in drug development and commercialization to bring effective treatments to market efficiently.
Financial Overview as of September 30, 2024
As of September 30, 2024, Evoke Pharma reported significant financial metrics, including:
| Metric | Amount (USD) |
|---|---|
| Net Product Sales (Nine Months Ended September 30, 2024) | $6,941,042 |
| Cost of Goods Sold (Nine Months Ended September 30, 2024) | $238,031 |
| Research and Development Expenses (Nine Months Ended September 30, 2024) | $16,322 |
| Selling, General and Administrative Expenses (Nine Months Ended September 30, 2024) | $10,697,128 |
| Net Loss (Nine Months Ended September 30, 2024) | $(4,159,428) |
| Net Loss Per Share (Basic and Diluted, Nine Months Ended September 30, 2024) | $(3.01) |
| Cash and Cash Equivalents (as of September 30, 2024) | $11,339,032 |
| Total Assets (as of September 30, 2024) | $14,153,571 |
| Total Liabilities (as of September 30, 2024) | $9,766,435 |
| Total Stockholders' Equity (as of September 30, 2024) | $4,387,136 |
Recent Developments
In February 2024, Evoke Pharma raised approximately $6.2 million from the sale of common stock units and pre-funded warrant units. The company also entered into several warrant amendments throughout 2024 to encourage the exercise of Series B and Series C warrants, which generated additional capital. As of September 30, 2024, total stockholders' equity was reported at $4,387,136, reflecting the company's ongoing efforts to strengthen its financial position while continuing to focus on the commercialization of Gimoti.
Market Position and Strategic Goals
Evoke Pharma's strategic goals include expanding the adoption of Gimoti through increased marketing efforts and enhancing its pharmacy network. The company aims to improve patient access to its products while maintaining a focus on research and development for future therapies targeting gastrointestinal disorders.
Conclusion on Mission Alignment
The mission of Evoke Pharma is closely aligned with its operational strategies and financial goals, as the company seeks to innovate within the pharmaceutical space and address unmet medical needs in the gastroenterology market.
How Evoke Pharma, Inc. (EVOK) Works
Overview of Operations
Evoke Pharma, Inc. is focused on the commercialization of its product, Gimoti, a nasal spray formulation of metoclopramide for the treatment of diabetic gastroparesis in women. The company operates under a commercial services agreement with Eversana to manage the marketing and distribution of Gimoti in the United States.
Financial Performance
As of September 30, 2024, Evoke Pharma reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Product Sales | $2,654,186 | $1,562,860 | $1,091,326 | 70% |
| Cost of Goods Sold | $104,024 | $34,908 | $69,116 | 198% |
| Research and Development Expenses | $11,677 | $0 | $11,677 | — |
| Selling, General and Administrative Expenses | $3,824,142 | $3,131,389 | $692,753 | 22% |
| Net Loss | $(1,312,390) | $(1,693,907) | $381,517 | (22.5%) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Evoke Pharma had the following cash flow metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(4,218,700) | $(3,878,873) |
| Cash and Cash Equivalents at End of Period | $11,339,032 | $5,964,826 |
| Proceeds from February 2024 Offering | $6,718,211 | - |
| Proceeds from Warrant Amendments (March 2024) | $1,229,874 | - |
Stockholder Equity
As of September 30, 2024, the stockholders' equity details are as follows:
| Item | Amount |
|---|---|
| Common Stock | $89 |
| Additional Paid-In Capital | $131,985,913 |
| Accumulated Deficit | $(127,598,866) |
| Total Stockholders’ Equity | $4,387,136 |
Product Sales and Market Strategy
The increase in net product sales for the quarter ended September 30, 2024, is attributed to enhanced commercialization efforts, an expanded pharmacy network, and a growing number of physicians prescribing Gimoti. During this period, the company recorded approximately 1,602 new inbound prescriptions.
Commercial Services Agreement with Eversana
The agreement with Eversana stipulates that Evoke retains ownership of the Gimoti New Drug Application (NDA) and is responsible for manufacturing and regulatory compliance. Eversana manages marketing and sales, receiving reimbursement for its costs which are expected to be paid from net product profits.
Recent Developments
In August 2024, Evoke filed a universal shelf registration statement covering the offering of up to $50 million of various securities. This provides the company with flexible funding options to support ongoing operations and commercialization efforts.
How Evoke Pharma, Inc. (EVOK) Makes Money
Revenue Generation through Product Sales
Evoke Pharma generates revenue primarily through the sale of its product, Gimoti, a nasal spray formulation of metoclopramide for the treatment of diabetic gastroparesis. For the nine months ended September 30, 2024, Evoke reported net product sales of $6,941,042, representing a 98% increase compared to $3,504,636 for the same period in 2023. In the third quarter of 2024 alone, net product sales reached $2,654,186, up 70% from $1,562,860 in the third quarter of 2023.
| Period | Net Product Sales | Change in Sales | % Change |
|---|---|---|---|
| Q3 2024 | $2,654,186 | $1,091,326 | 70% |
| 9 Months 2024 | $6,941,042 | $3,436,406 | 98% |
| 9 Months 2023 | $3,504,636 | - | - |
Cost of Goods Sold (COGS)
The cost of goods sold for the nine months ended September 30, 2024, was $238,031, up from $142,855 in the same period in 2023, marking a 67% increase. The increase in COGS reflects additional costs associated with stability testing of commercial batches of Gimoti.
Operating Expenses
Operating expenses for Evoke Pharma consist of research and development (R&D) expenses as well as selling, general, and administrative (SG&A) expenses. For the nine months ended September 30, 2024, total operating expenses were $10,951,481, compared to $9,047,609 for the same period in 2023, resulting in a 21% increase.
| Expense Type | 9 Months 2024 | 9 Months 2023 | Change | % Change |
|---|---|---|---|---|
| Cost of Goods Sold | $238,031 | $142,855 | $95,176 | 67% |
| Research and Development | $16,322 | $159,347 | ($143,025) | -90% |
| Selling, General and Administrative | $10,697,128 | $8,745,407 | $1,951,721 | 22% |
Net Loss and Financial Performance
Despite the increase in sales, Evoke Pharma reported a net loss of $4,159,428 for the nine months ended September 30, 2024, compared to a net loss of $5,804,894 for the same period in 2023. The loss per share for the nine months was $3.01, down from $20.84 in 2023.
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, Evoke Pharma reported net cash used in operating activities of $4,218,700, compared to $3,878,873 for the same period in 2023. However, financing activities provided significant cash inflow of $10,818,306, primarily from the sale of common stock and warrants.
| Cash Flow Activity | 9 Months 2024 | 9 Months 2023 | Change |
|---|---|---|---|
| Net Cash Used in Operating Activities | ($4,218,700) | ($3,878,873) | ($339,827) |
| Net Cash Provided by Financing Activities | $10,818,306 | $0 | $10,818,306 |
Commercialization Agreement with Eversana
Evoke Pharma has a commercialization agreement with Eversana for the marketing and distribution of Gimoti. This partnership is crucial for the company as it leverages Eversana's expertise in commercial operations to enhance product reach and patient access. The agreement includes provisions for profit sharing based on net sales of Gimoti.
Market Dynamics and Future Outlook
The market for diabetic gastroparesis treatments is competitive, with Gimoti facing challenges from established products. However, the increase in prescriptions and the company's strategic partnerships are expected to drive continued growth in sales. As of September 30, 2024, approximately 34% of filled prescriptions for Gimoti were covered by government programs like Medicare and Medicaid.
Key Metrics and Performance Indicators
As of September 30, 2024, Evoke Pharma reported approximately 1,602 new inbound prescriptions into the ASPN reimbursement center, with an increase of 8% in new prescribers during the quarter. The refill rate for patients who completed their first fill was approximately 71%.
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Resources:
- Evoke Pharma, Inc. (EVOK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evoke Pharma, Inc. (EVOK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evoke Pharma, Inc. (EVOK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.