Agile Therapeutics Inc. (NASDAQ:AGRX) has been given a buy rating and $12 price target by investment firm H.C. Wainwright & Co, and although the women’s healthcare company has faced challenges, its patented weekly birth control patch has seen a steady increase in its demand. Leveraging key partnerships and buoyed by the $7.5 million raised in a recent public offering, investors have high hopes for Agile’s future growth.
ENHANCED AFFORDABLE CARE ACT COMPLIANCE COULD BE A MAJOR TAILWIND FOR AGRX
Despite being guaranteed by the Affordable Care Act of 2010, the House Oversight Committee found in 2022 that most insurers and pharmacy benefit managers (PBMs) were still not providing free coverage for a plethora of contraceptive methods, excluding over 30 and imposing cost-sharing requirements. This means that women are still being denied access to a full range of contraceptive options, including pills, rings, implants, emergency contraception, and more recently approved FDA contraceptives.
The Twirla Patch is an important alternative for those seeking to avoid high doses of estrogen. With a single application of the patch lasting an entire week and containing the lowest dose of estrogen available, patients on the patch are able to free themselves of the daily pill reminder. Through compliance with the Affordable Care Act’s coverage guarantees, the Biden Administration is making this convenient, low-dose birth control patch available to millions across the country. The patch, which needs to be applied directly on the skin for three consecutive weeks and then not worn on the fourth week, is a convenient solution for those who may struggle to take a daily pill.
TWIRLA SALES CONTINUE TO CLIMB IN SPITE OF EXCLUSIONS
Agile, the women’s healthcare company, is seeing major success with Twirla, their contraceptive patch. Already generating $20M in sales, the company is expected to reach $25-30M in net revenue by 2023, and is partnering with Afaxys and NURX® to open up new pathways to growth. With Twirla being the exclusive contraceptive on NURX®’s telehealth platform, Agile can look to newly implemented non-340b accounts in California, plus an estimated 40% decrease in operating expenses year-over-year, to reach break-even cash flow in late 2023 or early 2024. According to H.C. Wainwright, Twirla sales will reach a staggering $95M by 2027. What an exciting time for Agile!