Evofem Biosciences, Inc.

Thank you. Good afternoon, everyone, and welcome to the FOSM Biosciences Q1 2022 results call. If you haven't done so already, I encourage you to access the presentation that accompanies this call and the press release to be issued at market close, both of which may be found at FOSM.com under the Investors tab. Before we begin, I would like to remind you that remarks on this call will contain four of those statements, which are made only as of today, May 4th, 2022. For more detailed description of important risk factors that could cause our actual results to differ materially, please refer to our annual report on Form 10-A and our most recently filed statute. With that, I'll turn the call over to Evo Femm's CEO, Sandra Pelletier.

Thank you, Amy, and thanks to everyone for joining us today. I am proud that today we are reporting our third consecutive quarter of improved operating results. We significantly improved growth to net. We increased FEXE net product sales, we reduced our total operating expenses, and we improved our long-term operations. This testifies to our ongoing disciplined approach to fiscal improvement. On the call today, I'm going to provide color on the trends and initiatives that we believe will drive further revenue growth and enable us to achieve our stated guidance and build long-term value for shareholders and the women and prescribers who rely on FECSI for hormone-free contraception. The most important development is that last week we received confirmation from one of the largest PBMs in the nation that they will add FECSI to their national template formulary with no restrictions. First, though, I'll ask our CFO, Jay Files, to review the financial results. Jay?

Thank you, Sandra. Today I'm going to focus on the first quarter of 2022 results relative to Q4 of 2021. Net product sales increased 19% to 4.3 million through my significant improvement in our gross to net percentage. Our gross to net decreased to 38% for the first quarter of 2022, a 30 percentage point improvement since the fourth quarter of 2021. This improvement was driven by the positive impact of adjustments to our patient support programs in January 2022. We believe the more favorable GTN is sustainable and that it will remain around this level or better going forward. R&D costs were $10.4 million, reflecting higher enrollment in the first quarter for the registrational Phase III Evergard trial effect seat for the prevention of chlamydia and gonorrhea in women. This study is fully enrolled, and these expenses will start to decrease as women exit the trial during the second and third quarter. Selling and marketing costs decreased by nearly 50% to $12.7 million. This was due primarily to lower direct-to-consumer spend in Q1. G&A costs were $9 million, predominantly higher due to outside services in Q1. As a result, total operating expenses decreased 19% to $33.2 million, and our loss from operations improved to 28.9 million. We continue to expect 2022 net product sales will be in the range of 30 to 35 million based on the current business, with momentum building in the second half of the year. Gross to net will remain in the 35 to 40% range for the foreseeable future, trending toward the lower end of that range in the second half of the year. We continue to believe this, coupled with significantly lower R&D costs as patients exit the EVIGARD trial, will give us the cash flow breakeven on a quarterly basis by the end of 2023. At the close of Q1, we had $2.8 million in cash and cash equivalents and $4.2 million in unrestricted cash. We raised $10 million in gross proceeds through two unsecured debt transactions and net proceeds of approximately $5.4 million from our equity line of credit. An additional $0.3 million was recorded as other receivables since it was received after the court closed. Of important note, This morning at our annual meeting, our stockholders of record approved a reverse stock split of EvoFem's common stock. The reverse split is intended to increase the per share trading price of the company's common stock to enable EvoFem to satisfy the minimum bid requirement for continued listing on the NASDAQ capital market. And with that, I'll turn it back to Sandra.