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Evoke Pharma (EVOK)
NASDAQ:EVOK

Evoke Pharma (EVOK) AI Stock Analysis

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Evoke Pharma

(NASDAQ:EVOK)

Rating:46Neutral
Price Target:
Evoke Pharma's stock score reflects a company facing financial difficulties despite notable revenue growth. The financial performance heavily weighs down the score due to persistent losses and cash flow issues. Technical analysis suggests bearish trends, and the valuation is unattractive with a negative P/E ratio. However, the earnings call provided a positive outlook, highlighting strategic initiatives and growth prospects, partially balancing the overall score.

Evoke Pharma (EVOK) vs. SPDR S&P 500 ETF (SPY)

Evoke Pharma Business Overview & Revenue Model

Company DescriptionEvoke Pharma, Inc., a specialty pharmaceutical company, primarily focuses on the development and commercialization of drugs for the treatment of gastroenterological disorders and diseases. It is developing Gimoti, a metoclopramide nasal spray that has completed Phase 3 clinical trials to treat symptoms associated with acute and recurrent diabetic gastroparesis in females. The company markets its products to gastroenterologists, internal medicine specialists, primary care physicians, and select health care providers. Evoke Pharma, Inc. was incorporated in 2007 and is headquartered in Solana Beach, California.
How the Company Makes MoneyEvoke Pharma generates revenue primarily through the commercialization of its lead product, Gimoti. Revenue is earned from sales of Gimoti to healthcare providers and pharmacies, which is then prescribed to patients suffering from diabetic gastroparesis. The company may also enter into licensing agreements, partnerships, or collaborations with other pharmaceutical firms to broaden the distribution and commercialization of its products. Additionally, Evoke Pharma might receive milestone payments and royalties as part of these agreements, contributing to its earnings. Factors such as market penetration, pricing strategies, and insurance reimbursement policies significantly impact the revenue streams of the company.

Evoke Pharma Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q4-2024)
|
% Change Since: -6.05%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, increased prescription fulfillment, and strategic partnerships, contributing to a positive financial outlook for 2025. Despite a net loss and increased expenses, the overall sentiment remains optimistic, bolstered by clinical validation and a strong cash position.
Q4-2024 Updates
Positive Updates
Record Revenue Growth
Evoke Pharma, Inc. reported a 97% year-over-year increase in revenue, reaching $10.2 million for 2024, up from $5.2 million in 2023.
Increased Prescription Fulfillment
The company achieved a 72% increase in fill rates year over year and a 22% growth in patient enrollments.
Expansion of Prescriber Base
There was a 46% increase in prescribers year over year, bringing the total cumulative prescriber base to 2,553.
Strategic Pharmacy Partnerships
Partnership with Aspen pharmacies facilitated faster delivery and insurance adjudication, contributing to commercial success.
Positive Financial Outlook
Projected net revenue guidance for 2025 is approximately $16 million, representing a 60% increase over 2024.
Strong Cash Position
Cash and cash equivalents were approximately $13.6 million as of December 31, 2024, with a cash runway into the first quarter of 2026.
Clinical Validation and Awards
Gimoti received the presidential poster award at ACT 2024 and demonstrated significant improvement over oral metoclopramide in real-world data.
Negative Updates
Net Loss
Evoke Pharma, Inc. reported a net loss of approximately $5.4 million for 2024, though this was an improvement from the $7.8 million loss in 2023.
Increased SG&A Expenses
Selling, general, and administrative expenses rose to $15.1 million in 2024 from $12.2 million in 2023, driven by higher marketing and advertising costs.
Challenges with Prior Authorizations
Only 50% of prior authorizations are being completed, indicating a significant area for improvement.
Company Guidance
During the Evoke Pharma, Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call, the company reported strong financial results with total revenue reaching $10.2 million for the year, marking a 97% year-over-year increase. The fourth-quarter revenue was $3.3 million, a 24.6% sequential increase. Significant growth drivers included a 46% increase in prescribers, expanding the cumulative prescriber base to 2,553, and a 72% increase in fill rates. Furthermore, patient enrollments grew by 22%. The company also highlighted the role of its strategic partnership with Aspen pharmacies, contributing to a 30% faster speed to therapy and a substantial reduction in out-of-network prescriptions. Looking forward, Evoke Pharma projects a 60% increase in net revenue for 2025, aiming for approximately $16 million, driven by enhanced reimbursement pathways and increased prescription fills. The company emphasized its commitment to strengthening market position through expanding pharmacy partnerships and increasing provider engagement.

Evoke Pharma Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
11.59M10.25M5.18M2.51M1.62M23.02K
Gross Profit
11.29M9.89M4.98M2.14M1.29M-63.69K
EBIT
-5.00M-5.20M-7.43M-7.79M-8.15M-13.05M
EBITDA
-4.58M-4.85M-7.29M-7.72M-8.04M-13.04M
Net Income Common Stockholders
-5.08M-5.35M-7.79M-8.16M-9.03M-13.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.70M13.60M4.74M9.84M9.14M8.07M
Total Assets
12.45M17.52M7.07M11.85M10.57M9.43M
Total Debt
5.00M5.16M5.00M5.13M5.01M5.25M
Net Debt
-4.70M-8.44M260.57K-4.71M-4.13M-2.82M
Total Liabilities
8.96M10.48M9.65M7.77M7.02M12.65M
Stockholders Equity
3.50M7.04T-2.58M4.08M3.56M-3.21M
Cash FlowFree Cash Flow
-3.88M-5.46M-4.98M-6.60M-12.35M-6.63M
Operating Cash Flow
-3.88M-5.46M-4.98M-6.60M-12.35M-6.63M
Investing Cash Flow
0.000.000.000.000.000.00
Financing Cash Flow
6.80M14.32M-119.30K7.29M13.43M9.04M

Evoke Pharma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.95
Price Trends
50DMA
2.90
Positive
100DMA
3.60
Negative
200DMA
4.19
Negative
Market Momentum
MACD
0.11
Positive
RSI
38.83
Neutral
STOCH
21.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVOK, the sentiment is Negative. The current price of 2.95 is below the 20-day moving average (MA) of 3.40, above the 50-day MA of 2.90, and below the 200-day MA of 4.19, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVOK.

Evoke Pharma Risk Analysis

Evoke Pharma disclosed 47 risk factors in its most recent earnings report. Evoke Pharma reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Evoke Pharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$6.77M-7.89%-2.81%72.03%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
47
Neutral
$1.76M-440.77%-1.21%93.72%
46
Neutral
$4.40M-108.77%97.84%82.99%
45
Neutral
$3.96M-714.96%978.39%69.65%
29
Underperform
$4.35M-91.32%48.81%
$8.27M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVOK
Evoke Pharma
2.95
-3.77
-56.10%
NUWE
Nuwellis
0.40
-6.83
-94.47%
SONN
Sonnet BioTherapeutics Holdings
1.25
-14.51
-92.07%
RKDA
Arcadia Biosciences
4.96
2.11
74.04%
GLTO
Galecto
3.29
-10.22
-75.65%
NLSP
NLS Pharmaceutics
2.30
-2.63
-53.35%

Evoke Pharma Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Evoke Pharma Appoints Greg Pyszcymuka as Director
Positive
Feb 24, 2025

On February 20, 2025, Evoke Pharma appointed Greg Pyszcymuka as a Class I director, with his term expiring at the 2026 annual meeting of stockholders. This appointment is part of a strategic move to strengthen the company’s leadership, with Mr. Pyszcymuka bringing over 20 years of experience in sales, marketing, and commercial operations from his previous roles at Aytu Biopharma, Neos Therapeutics, and other pharmaceutical companies. His appointment is expected to enhance Evoke Pharma’s governance and operational strategies.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.