Why did EVOK Shares Skyrocket in Premarket Trading Today?

Evoke Pharma, Inc. (NASDAQ: EVOK) shares surged dramatically in premarket trading on Thursday, jumping 25.39% to $7.31 at 7:56:30 AM EDT following significant patent news. The pharmaceutical company announced that a new patent covering its GIMOTI nasal spray for gastroparesis has been listed in the FDA’s Orange Book, extending patent protection until November 2038. This development represents a major milestone for the $12.4 million market cap specialty pharmaceutical company, which has seen its stock gain over 13% in the past week according to recent data.

Patent Extension Provides Major Competitive Advantage for Evoke Pharma

The newly listed U.S. Patent No. 12,377,064 covers the use of GIMOTI (metoclopramide) nasal spray in patients with moderate to severe symptoms of gastroparesis, with an expected expiration date of November 17, 2038. This patent extension provides approximately eight years of additional protection beyond the company’s previously latest expiring patent, significantly extending GIMOTI’s commercial life. The timing is particularly strategic as metoclopramide remains the only drug currently approved in the United States to treat gastroparesis, and prior to GIMOTI’s FDA approval, it was only available in oral and injectable formulations.

Chief Executive Officer Matt D’Onofrio emphasized the patent’s importance, stating that it demonstrates the company’s commitment to developing innovative products while protecting their investment in innovation. The patent reinforces Evoke Pharma’s long-term strategy to maximize GIMOTI’s commercial potential while ensuring continued access for patients requiring non-oral treatment for diabetic gastroparesis. This development comes alongside other recent patent successes, including a Notice of Allowance for another patent application that would extend exclusivity until December 2036.

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Evok’s Strong Financial Metrics Support Growth Trajectory

EVOK shares closed Wednesday at $5.83, down 4.89% from the previous session, before surging to $7.31 in premarket trading on Thursday morning. The company maintains impressive financial metrics despite its small market capitalization, including a remarkable 96.6% gross profit margin and 70% year-over-year revenue growth as of recent reports. With trailing twelve-month revenue of $12.79 million and total cash of $12.06 million on the balance sheet, Evoke Pharma maintains a strong financial position with more cash than debt.

The stock has shown significant volatility with a 52-week range of $1.94 to $12.32, reflecting both the opportunities and risks inherent in specialty pharmaceutical investments. Current analyst price targets average $18.00, representing substantial upside potential from current levels. The company’s focus on gastrointestinal disorders, combined with its exclusive position in the gastroparesis nasal spray market and extended patent protection, positions it for potential long-term growth as it continues to expand GIMOTI’s commercial reach.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.