Why Are Evofem Biosciences Shares Rising On Wednesday?

Evofem Biosciences Inc EVFM shares are trading higher after the Health Resources and Services Administration (HRSA) and the U.S. Department of Labor issued updated guidance related to contraceptive access. 

• The new guidance specifies that most insurers and pharmacy benefit managers (PBMs) must provide coverage, with no out-of-pocket costs to women, for FDA-approved contraceptive products, like Phexxi, prescribed by healthcare providers.
• "We believe this is a huge step forward toward ensuring contraceptive access for all women at zero copay under the Affordable Care Act (ACA), further reducing unintended pregnancies in the U.S., and helping women get access to Phexxi, an innovative hormone-free birth control," said Saundra Pelletier, CEO of Evofem Biosciences.
• The full range of FDA- approved, -granted, or -cleared contraceptives, effective family planning practices, and sterilization procedures should be available as part of contraceptive care.
• Under the U.S. Department of Labor update, plans must cover an FDA- approved, cleared, or granted contraceptive, if a provider deems it medically necessary, at $0 cost-share, whether or not it is identified explicitly in the current FDA Birth Control Guide.
• The Department of Labor also established clear communications channels for consumers concerned about their plan's compliance with HSRA requirements.
• Price Action: EVFM shares are up 25.3% at $0.49 during the market session on the last check Wednesday.