Penny Stock Up on Birth Control Buzz

If approved, the hormone-free birth control would be the first of its kind

Successful late-stage results for its experimental birth control, Amphora, have Evofem Biosciences Inc (NASDAQ:EVFM) stock up in early trading. If approved by regulators, the gel-based, hormone-free birth control would be the first of its kind -- news that has EVFM shares up nearly 20% to trade at $4.24. The stock earlier peaked at $4.90 -- the highest it's been since early September.

Analysts have hope for the drug company, too. Roth Capital Partners said today's data "pave(s) the way for Amphora's disruption of the contraception market." Meanwhile, Cantor Fitzgerald waxed optimistic on Evofem Biosciences' data, with an "overweight" rating and $9 price target -- more than double the stock's current price. That echoes the high hopes of other analysts, as the consensus 12-month price target sits at $10.40, and all five analysts following EVFM give it a "buy" or better rating.

Even with today's bull gap, EVFM is down more than 60% year-to-date. The stock has more than doubled since its Aug. 2 low of $1.79, but rebound attempts have stalled just below the $5 area, where the shares were trading before a May bear gap. However, today's rally has the stock on pace to break north of a recent ceiling at the $4 level.