Evoke Pharma Q1 2024 Financial Results

Evoke Pharma, Inc., a specialty pharmaceutical company dedicated to treating gastrointestinal (GI) diseases with a focus on GIMOTI® (metoclopramide) nasal spray, reported its financial results for the first quarter ending March 31, 2024. The announcement highlighted significant year-over-year growth and recent corporate developments.

CEO Matt D’Onofrio emphasized the continued momentum in the adoption of GIMOTI, noting the positive real-world healthcare utilization data from over 500 patients, which supports the drug’s efficacy for diabetic gastroparesis compared to oral treatments. Testimonials from physicians and patients alike underscore the growing demand and trust in GIMOTI.

In Q1 2024, Evoke Pharma achieved a net revenue of approximately $1.7 million. Despite facing challenges such as a cyberattack on the largest U.S. medical claims processor and increased co-pay expenses due to lower payor reimbursements and higher patient deductibles, the company adapted effectively. These challenges temporarily impacted new patient enrollments and refill adjudications for GIMOTI. Nevertheless, the company recorded a 70% increase in prescriber growth and a 10% rise in medication fills from Q4 2023 to Q1 2024. Strengthened partnerships, particularly with ASPN Pharmacies, are expected to further enhance service delivery and patient reach.

The company is confident about resolving these issues as the year progresses, anticipating accelerated growth throughout the remainder of 2024. The company's performance reaffirms its $14 million net revenue guidance for the year.

Key developments in the first quarter included efforts to maximize GIMOTI awareness through Key Opinion Leaders (KOLs) and conferences. A virtual webinar with Dr. Michael Cline from the Cleveland Clinic discussed the limitations of oral metoclopramide and the benefits of the nasal delivery system of GIMOTI. Additionally, data on healthcare resource utilization for women with diabetic gastroparesis treated with nasal metoclopramide is set to be presented at Digestive Disease Week (DDW) 2024 in Washington D.C.

Evoke also transitioned its pharmacy service partnership to ASPN Pharmacies, enhancing its GIMOTI distribution infrastructure. The company raised $8.8 million in gross proceeds through a public offering and subsequent exercise of warrants, providing sufficient runway into the fourth quarter of 2024, with an additional $21.8 million available if all common stock warrants are exercised.

Financially, Evoke Pharma reported net product sales of approximately $1.7 million for Q1 2024, up from $0.8 million in Q1 2023. The net loss for the quarter was approximately $1.6 million, or $0.17 per share, compared to $2.2 million, or $0.67 per share, in the same period the previous year. Selling, general, and administrative expenses rose to about $3.1 million due to higher professional fees and profit-sharing activity with EVERSANA. Total operating expenses were approximately $3.2 million, a slight increase from $3.0 million in Q1 2023. As of March 31, 2024, the company had cash and cash equivalents of approximately $9.7 million, which, along with future cash flows from GIMOTI sales, is expected to fund operations into the first quarter of 2025.

Evoke Pharma remains committed to addressing the needs of patients with diabetic gastroparesis through innovative treatments like GIMOTI. The company looks forward to continuing its growth trajectory and enhancing patient outcomes.