What Evolus, Inc. told the SEC could break it.

Evolus is exposed to trade policy because it imports both products: it sources Evolysse from France and Jeuveau from South Korea, and since 2025 these have been subject to implemented or threatened U.S. tariffs (which have already increased its cost of goods), while the U.S. Department of Commerce has initiated a Section 232 investigation into pharmaceutical imports that could lead to significant new tariffs even though pharmaceuticals like Jeuveau are currently exempt from retaliatory tariffs; tariff changes can be announced with little notice and would raise its COGS and pressure margins.

“For example, we source our Evolysse™ products from France and our Jeuveau ® product from South Korea, and since 2025 they have been either subject to implemented or threatened tariffs.”

Evolus's revenue is concentrated in just two products (Jeuveau and Evolysse) in the elective aesthetics market, so it depends on broad aesthetic-practitioner adoption and on consumer discretionary spending and customer purchasing decisions, both of which are sensitive to global economic conditions (including tariffs) and changes in consumer or customer sentiment; a downturn in discretionary spending, weaker practitioner adoption, or intense competition (e.g., BOTOX) could materially reduce demand for its narrow product portfolio.

“Our products rely on consumer discretionary spending and the purchasing decisions of our customers, both of which are sensitive to global economic conditions, including the imposition of tariffs, or changes in consumer or customer sentiment.”

Evolus depends entirely on two single-source third-party manufacturers under licensing agreements: Daewoong is its exclusive and sole supplier of Jeuveau (its botulinum-toxin product) and Symatese is its sole supplier of Evolysse (its HA dermal filler); any termination or loss of significant rights — including exclusivity — under the Daewoong or Symatese agreements, or a supply disruption at either, would materially and adversely affect the commercialization of its only two product franchises.

“We rely on our licensing agreements with Daewoong Pharmaceutical Co. Ltd (“Daewoong”), and Symatese and any termination or loss of significant rights, including exclusivity, under these agreements would materially and adversely affect our business.”

Evolus has a history of significant losses since inception and may continue to incur losses, and it relies on secured debt for liquidity — the New Pharmakon Term Loans (with $100M of additional availability) and a March 2026 Eclipse Business Capital Revolving Credit Facility secured by a first-priority lien on substantially all of its assets (accounts receivable, inventory, cash and intellectual property) with restrictive covenants — while the Medytox Settlement Agreements continue to reduce its profitability; an inability to reach or sustain profitability, rising rates, or covenant pressure could impair its capital position and going-concern outlook.

“We are a global performance beauty company with a history of significant losses. To date, we have invested substantially all of our efforts and financial resources in the clinical development, regulatory approval, and commercial”