Evoke Pharma Reports 77% Increase in Net Product Sales, Faces Ongoing Financial Challenges

Evoke Pharma, Inc. reported its financial results for the first quarter of 2025, revealing a significant increase in net product sales, which reached $3.08 million, up 77% from $1.74 million in the same period last year. The company attributed this growth to an expanded pharmacy network and increased prescription refills. Despite the rise in sales, Evoke incurred a net loss of $1.31 million, a decrease from a loss of $1.58 million in the prior year, reflecting improved operational efficiency and reduced costs of goods sold, which fell by 55% to $41,613.

The company's total operating expenses for the quarter were $4.38 million, compared to $3.24 million in the previous year, primarily driven by increased selling, general, and administrative expenses, which rose by 37% to $4.30 million. This increase was largely due to higher marketing costs associated with the commercialization of its sole product, Gimoti, and expenses related to the Eversana profit-sharing agreement. Research and development expenses also saw a significant rise, increasing by 821% to $42,783, as the company continued to invest in product development.

Evoke's balance sheet as of March 31, 2025, showed total assets of $16.38 million, a decrease from $17.52 million at the end of 2024. The company's cash and cash equivalents stood at $12.62 million, down from $13.60 million, indicating a need for careful cash management as it continues to fund its operations. The company had total liabilities of $10.53 million, slightly up from $10.48 million, with current liabilities including a note payable of $5 million and accrued interest payable of $2.24 million.

Operationally, Evoke reported a 25% increase in new inbound prescriptions processed through its ASPN pharmacy hub, totaling approximately 1,793 prescriptions in the first quarter. The company has also expanded its network of dispensing pharmacies, which has improved insurance coverage for patients and reduced reliance on single pharmacy partners. However, Evoke faces ongoing risks, including the potential termination of its commercial services agreement with Eversana, which could significantly impact its ability to continue operations and meet its financial obligations.

Looking ahead, Evoke anticipates continued losses as it invests in commercialization activities and prepares for a post-marketing commitment clinical trial for Gimoti. The company has expressed substantial doubt about its ability to continue as a going concern without securing additional funding, as its current cash reserves may not be sufficient to cover operational costs beyond the second quarter of 2026. Evoke's management is actively exploring options for raising additional capital to support its ongoing operations and product development initiatives.