Tiny contraception inventory soars following Roe v. Wade overturn

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Tiny contraception inventory soars following Roe v. Wade overturn

shirishshetty

July 28, 2022

Tiny contraception inventory soars following Roe v. Wade overturn

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Shares of Evofem Biosciences (EVFM), which makes a hormone-free contraceptive vaginal gel named Phexxi, have greater than doubled for the reason that court docket dominated that abortion rights are now not federally protected by the Structure, leaving it as much as states to resolve whether or not or to not ban abortions.

Evofem Biosciences had already been getting ready for extra curiosity in its merchandise even earlier than the ruling was official.

“When ladies are denied secure, authorized abortion, the significance of entry to FDA-approved contraception is larger than it has ever been,” Saundra Pelletier, president and CEO of Evofem Biosciences, stated throughout the firm’s newest earnings name in early Could, simply days after a draft model of the Supreme Court docket’s majority opinion was leaked.

The inside story of how John Roberts failed to save abortion rights

Nonetheless, the massive transfer within the inventory has caught the eye of skeptical merchants as properly. Quick sellers — buyers who borrow shares and promote them with the hopes of shopping for them again at a lower cost and pocketing the distinction — have ramped up their bets in opposition to the inventory.

S&P International Market Intelligence famous in a report final week that Evofem Biosciences is now probably the most closely shorted shares in all the market. The quantity of inventory being held brief, often called brief curiosity, within the firm went up from about 6% of obtainable shares in mid-June to greater than 50% by the tip of that month.

This clearly reveals that there are huge dangers — along with the doable rewards — from attempting to commerce shares primarily based on headlines. Although Evofem Biosciences shares are nonetheless up sharply from their pre-Dobbs v. Jackson Ladies’s Well being Group ruling ranges, the inventory has pulled again sharply from its post-decision peak.

Evofem Biosciences now trades at round 80 cents a share, after hitting a excessive of $1.57 in early July. (The inventory was beneath 40 cents earlier than the Supreme Court docket ruling.) Buying and selling quantity has been extraordinarily excessive as properly, an indication of the elevated curiosity from each bulls and bears.

Evofem Biosciences is not the one small reproductive healthcare inventory that is been on a wild experience up to now month. Femasys, which is creating what it claims shall be a everlasting contraceptive resolution referred to as FemBloc, is up practically 40% since Roe v. Wade was overturned.

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