In a bold move within the biotech sector, Northern California and Virginia-based Aditxt Inc. has signed a definitive agreement to acquire Evofem Biosciences, the San Diego firm behind Phexxi, the only FDA-approved hormone-free contraceptive gel, as per Aditxt, Inc. This transaction rounds up to an approximate value of $100 million as the companies announced last week.
Exciting news at Aditxt (NASDAQ: ADTX)! 🚀
— Aditxt, Inc. (@aditxt) December 13, 2023
We're thrilled to share that we’ve signed a definitive agreement to acquire @Evofem Biosciences, Inc., makers of Phexxi®—the only FDA-approved hormone-free contraceptive gel.
Phexxi empowers women in a revolutionary way. This on-demand… pic.twitter.com/qsAkbo6LgT
The acquisition comes after a tumultuous year for Evofem, which, despite launching Phexxi in 2020 amidst a flurry of celebrity endorsements and insurance negotiations, faced a significant stock drop and NASDAQ delisting following a failed clinical trial in October 2022. The company's struggles included cost reduction measures led by CEO Saundra Pelletier including a significant pay cut, an office offload, and a workforce reduction to conserve cash, Pelletier said, per The San Diego Union-Tribune.
Aditxt's acquisition includes roughly $60 million in preferred stock and the assumption of Evofem's $18 million in debt, while also providing a $3 million loan to cover closing costs, a move aligning with Aditxt's mission to promote innovative health technologies. Amro Albanna, Aditxt's CEO, described Evofem's product as a "groundbreaking innovation," in a statement highlighting their enthusiasm for the merger and commitment to enhancing women's health globally, according to The San Diego Union-Tribune.
Post-merger, Pelletier will continue as CEO of Evofem, and the company's 38 employees will become part of Aditxt, while the San Diego presence will remain under a new operational model. As for the specifics, the deal's closure is slated for the first half of 2024, at which point, Aditxt plans to employ Evofem's innovation to bolster its foray into women's health. A decision Pelletier believes will allow Phexxi to expand into new markets, including college campuses and a segment of individuals unable to use hormonal birth control options, such as cancer patients. Pelletier expressed relief and optimism regarding the future of Phexxi under Aditxt's umbrella.
With Evofem's integration into Aditxt, the combined companies aim to rejuvenate investments in women's reproductive health solutions, leveraging the unique position of Phexxi as a hormone-free alternative in the contraceptive market to potentially capture a wider consumer base seeking non-hormonal options.
