Evofem Biosciences, a California-based pharmaceutical company focused on women’s reproductive health, announced this week that it will implement expense reduction measures in an effort to break even its cash flow by the end of the year.
According to a recent SEC filing and company statement, Evofem will reduce the salary of its Chief Executive Officer by 40%, while other members of the executive team will see a 20% cut. CEO Saundra Pelletier, who has been with the company since 2015, agreed to a base salary reduction to $520,000.
To reduce operational costs by approximately $4.3 million, the company will let go of eight office and management positions, including the Chief Commercial Officer role. As a result, Evofem’s overall payroll expense will decrease by 39%, with the CEO taking the largest cut.
Evofem will continue to focus on advancing its lead asset, Phexxi, a non-hormonal, on-demand contraceptive gel. Phexxi is the first and only non-hormonal, prescription contraceptive gel approved by the FDA, and was launched in the United States in September 2020.
