Evoke Pharma revenue flat in H1 2026 as tariffs weigh on sales

Evoke Pharma said on Wednesday its revenue remained unchanged in the first half of 2026, as higher tariffs offset growth in core product sales.

The company, which develops and commercializes therapies for rare diseases, reported H1 2026 revenue of $125 million, matching the same period a year earlier. Executives noted that while unit volumes rose 8% year-over-year, the benefit was fully offset by a 15% increase in tariff-related costs, primarily on imported raw materials.

Gross margin contracted to 68% from 72% in H1 2025, with management attributing the decline to higher input costs and supply chain disruptions linked to the tariff hikes. Operating expenses increased 12% to $38 million, driven by higher logistics and compliance spending.

Evoke maintained its full-year revenue guidance of $240 million to $250 million, citing strong demand for its lead therapy, GAVRETO (pralsetinib). However, the company lowered its adjusted EBITDA margin forecast to 22%-24% from 25%-27%, citing ongoing cost pressures.

CEO Ryan Spencer said the company was exploring alternative sourcing strategies to mitigate tariff exposure, including potential local manufacturing in key markets. "We are actively evaluating options to reduce our reliance on imported materials," Spencer said during the call.

The company’s shares were down 3% in after-hours trading following the release of the transcript.