Nashville, Tennessee-based Revance Therapeutics, Inc. (NASDAQ:RVNC), a pharmaceutical company currently valued at approximately $397 million, has announced another delay in the commencement of a tender offer for its outstanding common stock shares. The offer is part of an ongoing merger agreement with Crown Laboratories, Inc. and Reba Merger Sub, Inc., collectively referred to as the Buyer Parties.
According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment, despite facing significant challenges with rapid cash burn and profitability concerns.Want deeper insights? InvestingPro subscribers have access to detailed valuation metrics and 8 additional key insights about RVNC's financial health and market position.
The decision to extend the offer's start date to December 3, 2024, was mutually agreed upon by Revance and the Buyer Parties on Friday, November 29, 2024. This follows a previous extension from November 26, 2024, as detailed in Revance's earlier Form 8-K filing. The company's financial position shows a current ratio of 4.12, indicating strong short-term liquidity, though its revenue growth of 26% in the last twelve months hasn't translated to profitability.
The delay is attributed to ongoing discussions between Revance and Crown, which may lead to further postponements, modifications to the merger terms—including the offer price—or the pursuit of remedies under the agreement. The original merger agreement was announced on August 11, 2024.
Revance's announcement also included a waiver to the merger agreement regarding the extension, which has been filed with the Securities and Exchange Commission (SEC) and is incorporated by reference in its latest Form 8-K report.
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The tender offer has not yet commenced, and this communication is not a solicitation of an offer to buy or sell securities. The information is based on a press release statement.
In other recent news, Revance Therapeutics has made several noteworthy developments. The biotechnology firm reported a 20% increase in total net revenue, reaching $65.4 million, primarily due to increased unit sales and a rise in net product revenue in its aesthetics division. Furthermore, Revance's product, DaxinbotulinumtoxinA for Injection, received approval from China's National Medical (TASE:PMCN) Products Administration, marking a significant expansion into the Chinese market.
Revance is also in the process of merging with Crown Laboratories, a private global skincare company, in a deal valued at approximately $924 million. However, this proposed merger has led to downgrades of Revance's stock rating by William Blair and Stifel to Market Perform and Hold, respectively. Despite these downgrades, Mizuho (NYSE:MFG) maintains a Neutral rating on Revance shares.
Additionally, Revance has extended the commencement date of a tender offer for all outstanding shares of its common stock due to ongoing discussions with Teoxane SA. The outcome of these discussions may lead to modifications in the distribution agreement or further legal remedies sought by either party.
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