NASHVILLE - Revance Therapeutics, Inc. (NASDAQ: NASDAQ:RVNC), a biotechnology company, has announced a proposed underwritten public offering of $100 million of its common stock. The company also plans to give the underwriter a 30-day option to buy up to 15% of the shares offered.
The proceeds from the sale are earmarked for the expansion of Revance's aesthetics portfolio, which includes DAXXIFY® and the RHA® Collection of dermal fillers. They will also support the introduction of DAXXIFY® into the therapeutics market and will be used for general corporate purposes, including working capital, research, and development.
Barclays (LON:BARC) is serving as the sole book-running manager for the offering. The shares will be sold on the Nasdaq Global Market, in the over-the-counter market, or through negotiated transactions, depending on market conditions.
As of March 1, 2024, shares of Revance were last traded at $6.98 per share on the Nasdaq Global Market. The offering is contingent on market conditions, and there is no guarantee of the completion date or the final terms of the offering.
The offering will be made through a prospectus supplement and accompanying prospectus, which are part of an automatic shelf registration statement filed with the Securities and Exchange Commission (SEC) on November 14, 2023.
Revance specializes in developing aesthetic and therapeutic products, including DAXXIFY® for injection and the RHA® Collection of dermal fillers in the U.S. The company has partnerships with Viatris Inc (NASDAQ:VTRS). for a biosimilar to onabotulinumtoxinA and with Shanghai Fosun Pharmaceutical for the commercialization of DAXXIFY® in China.
This announcement is based on a press release statement.
InvestingPro Insights
As Revance Therapeutics, Inc. (NASDAQ: RVNC) prepares for its public offering, it's important for investors to be aware of the company's current financial health and market performance. According to InvestingPro data, Revance has a market capitalization of approximately $615.73 million. Despite impressive revenue growth in the last twelve months as of Q4 2023, with an increase of 76.55%, the company's operating income margin was deeply negative at -94.31%.
Investors should note the significant price volatility Revance's stock has experienced. The company's shares have seen a strong return over the last month, with a 29.98% increase, yet the six-month price total return shows a substantial decline of -61.56%. This could reflect market sentiment adjusting to both the company's financials and its strategic moves, such as the latest public offering.
Two InvestingPro Tips that stand out for Revance are the company's rapid cash burn and the lack of profitability over the last twelve months. Analysts do not expect the company to be profitable this year, which is a critical consideration for potential investors. Furthermore, Revance does not pay a dividend, which may influence the investment decisions of those seeking regular income.
For those interested in a deeper dive into Revance's performance and future outlook, there are additional InvestingPro Tips available. Access these valuable insights at https://www.investing.com/pro/RVNC and use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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