RVNC - Revance Therapeutics: Problems Mounting Amid Legal And Financial Woes

2024-06-20 16:40:55 ET

Summary

• Revance Therapeutics, Inc. operates in the aesthetics and therapeutics markets, selling Daxxify and RHA Collection of dermal fillers in the U.S.
• Despite positive guidance for 2024, the Revance stock price has fallen by nearly 70% year-to-date, facing financial vulnerability and market skepticism.
• Wall Street remains skeptical about Revance's business model and forecasts, given it is facing competitive threats and ongoing disputes, making recovery uncertain.
• The company is in a financially perilous position and faces litigation from AbbVie accusing the company of misappropriating trade secrets.
• On the one hand, there is a risky contrarian bet with Revance shares down >90% in 15 months, but I am siding with Wall Street - the company faces a fight to survive in the midst of so many issues.

Investment Overview - Revance Fails To Arrest Share Price Slide In 2024

Revance Therapeutics, Inc. ( RVNC ) is a Nashville, Tennessee-based pharmaceutical company operating in the field of aesthetics / therapeutics. It markets and sells Daxxify (DaxibotulinumtoxinA-lanm), indicated to treat moderate to severe glabellar lines in the aesthetics market, and to treat cervical dystonia in the therapeutics market. It also markets and sells its RHA Collection of dermal fillers in the U.S.

In November last year, I covered Revance in a deep dive note for Seeking Alpha, and awarded its stock - trading at a value of $7 per share at the time - a sell rating. I noted that:

Ever since its initial public offering ("IPO") in 2014, which raised ~$96m via the issuance of ~6m shares priced at $16 per share, Revance Therapeutics ( RVNC ) has led investors on a merry dance, thanks to the volatility of its share price.

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