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Thank you Dew. I appreciate the feedback. I should have looked further back on details. The numbers jumped out at me which is exactly why I asked.
Best
Looking at the balance sheet published this afternoon.
Inventories at the end of Q2 $34,448 versus $18,325 on December 31, 2022
That is quite the build up of inventory. The question I have is this significant increase in inventory attributed to finished goods (Daxi) or raw materials on hand?
Q2 report
- Q2 total revenue of $58.1 million, a YoY increase of 104.9%.
- Q2 RHA® Collection revenue of $31.8 million, a YoY increase of 24.7%.
- Q2 DAXXIFY® revenue of $22.6 million, a QoQ increase of 47.1%.
- Bolstered financial position with $100 million net proceeds from ATM program and $50 million in notes available to be issued through Athyrium Capital on or before August 31, 2023.
- PDUFA date of August 19, 2023 for DAXXIFY® for the treatment of cervical dystonia.
- Conference call and webcast today at 4:30 p.m. ET.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 8, 2023-- Revance Therapeutics, Inc. (RVNC), today reported financial results for the second quarter ended June 30, 2023 and provided a corporate update.
Financial Highlights
Total revenue for the second quarter ended June 30, 2023 was $58.1 million compared to $28.4 million for the same period last year, representing an increase of 104.9% primarily due to the sales growth of the RHA® Collection of dermal fillers and the commercialization of DAXXIFY®. Revenue for the second quarter included $31.8 million of RHA® Collection revenue, $22.6 million of DAXXIFY® revenue and $3.7 million of service revenue. Revenue for the six months ended June 30, 2023 was $107.5 million compared to $53.6 million for the same period in 2022.
Selling, general and administrative (SG&A) expenses for the three and six months ended June 30, 2023 were $77.4 million and $143.4 million compared to $47.8 million and $92.9 million, respectively, for the same periods in 2022, presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The quarterly increase was primarily due to higher sales and marketing expenses related to DAXXIFY® and the RHA® Collection. Excluding depreciation, amortization and stock-based compensation, non-GAAP SG&A expenses were $64.2 million and $117.8 million, respectively, for the three and six months ended June 30, 2023.
Research and development (R&D) expenses for the three and six months ended June 30, 2023 were $22.8 million and $46.0 million compared to $24.9 million and $55.6 million, respectively, for the same periods in 2022. The quarterly decrease was primarily due to the effects of capitalizing certain manufacturing-related expenses for DAXXIFY®. Excluding depreciation, amortization and stock-based compensation, non-GAAP R&D expenses were $19.0 million and $36.9 million, respectively, for the three and six months ended June 30, 2023.
Total operating expenses for the three and six months ended June 30, 2023 were $123.6 million and $231.0 million compared to $86.2 million and $173.7 million, respectively, for the same periods in 2022. Excluding costs of revenue, depreciation, amortization and stock-based compensation, non-GAAP operating expenses were $83.2 million and $154.7 million, respectively, for the three and six months ended June 30, 2023.
Net loss for the three and six months ended June 30, 2023 was $67.3 million and $127.1 million, respectively, compared to a net loss of $61.4 million and $125.8 million for the same periods in 2022.
Cash, cash equivalents and short-term investments as of June 30, 2023 were $319.7 million.
At-the-market (ATM) program. During the second quarter, the company issued 3.2 million shares of common stock pursuant to the company’s ATM offering, which provided net proceeds of $100 million.
Note purchase agreement with Athyrium Capital. On August 8th, Revance and Athyrium Capital amended the company’s existing Note Purchase Agreement entered into on March 18, 2022. Pursuant to the amendment, the committed 8.5% Second Tranche note was reduced from $100 million to $50 million, and the uncommitted Third Tranche note was increased from $100 million to $150 million. The company expects to issue its Second Tranche note of $50 million on or before August 31, 2023, provided certain conditions are met.
“We are very pleased with our strong Q2 performance highlighted by DAXXIFY’s first full quarter of launch and the continued growth of the RHA® Collection. With regards to DAXXIFY®, we remain very encouraged by the product’s performance, uptake, and ongoing demand. Coupled with the strong execution of our commercial team, we continue to believe we have the right people, products and strategy in place to realize our blockbuster potential in aesthetics,” said Chief Executive Officer, Mark J. Foley. “Given our growth, we have taken prudent steps to significantly bolster our financial position to ensure that we have the necessary resources to support our aesthetics business while also preparing for our entry into the therapeutics market. We believe we are well positioned for our opportunities ahead and look forward to sharing more on our business and outlook at our upcoming Investor Day in September.”
Second Quarter Highlights and Subsequent Updates
Total DAXXIFY® sales generated through Q2 of 2023 was $49.0 million, which surpassed the total sales generated by any competitor to Botox® in their first launch year.
The onboarding of 50 additional aesthetic salespeople was completed in the second quarter 2023, bringing the company’s total aesthetic sales force to more than 150 people.
Accounts across Revance’s aesthetic portfolio totaled over 6,000 at the end of the second quarter 2023.
Revance launched its first unbranded, “Break Up with Botox®”, direct-to-consumer campaign, driving strong consumer awareness across key channels and platforms. Since its initiation in June, the targeted campaign garnered 57 million impressions and over 9 million views.
In July, the U.S. Food and Drug Administration (FDA) approved the expansion of RHA® 4’s label to include cannula use. RHA® 4 is indicated for the correction of moderate to severe dynamic facial wrinkles and folds, such as nasolabial folds.
Gross payment volume (GPV) for the OPUL® Relational Commerce platform totaled $173 million for the second quarter 2023 and $697 million for the trailing-twelve months ended June 30, 2023.
Fosun Pharma’s biologics license application (BLA) for DAXXIFY® for cervical dystonia was accepted for review by China’s National Medical Products Administration (NMPA). This is Fosun Pharma’s second BLA acceptance for DAXXIFY® by China’s NMPA.
Financial Outlook
Revance expects 2023 GAAP operating expenses to be $460 million to $480 million and non-GAAP operating expenses, which exclude costs of revenue, depreciation and amortization and stock-based compensation to be $320 million to $340 million. Revance expects 2023 non-GAAP research and development expenses to be $80 million to $90 million. The company’s non-GAAP operating expense guidance for 2023 primarily reflects increased investments in its aesthetics commercial infrastructure, including sales team expansion, DAXXIFY® and RHA® Collection commercial investment, and biosimilar partnership investment.
With current cash, cash equivalents and short-term investments, $50 million in notes the company plans to issue through Athyrium Capital, provided certain conditions are met, and anticipated revenues and expenditures, management projects that the company will be funded to cash flow break-even.
Conference Call
Revance will host a corresponding conference call and a live webcast at 1:30 p.m. PT/4:30 p.m. ET on August 8, 2023 to discuss its financial results and provide a corporate update. Individuals interested in listening to the conference call may do so by dialing (888) 330-3637 or from the webcast link in the investor relations section of the company's website at: www.revance.com.
A replay of the call will be available beginning August 8, 2023, at 4.30 p.m. PT/7.30 p.m. ET until November 9, 2023 at 4.30 p.m. PT / 7.30 p.m. ET. To access the replay, please register through the webcast link found in the investor relations section of the company’s website. The webcast will be available in the investor relations section on the company's website for 90 days following the completion of the call.
RVNC Q2 info
- Q2 total revenue of $58.1 million, a YoY increase of 104.9%.
- Q2 RHA® Collection revenue of $31.8 million, a YoY increase of 24.7%.
- Q2 DAXXIFY® revenue of $22.6 million, a QoQ increase of 47.1%.
- Bolstered financial position with $100 million net proceeds from ATM program and $50 million in notes available to be issued through Athyrium Capital on or before August 31, 2023.
- PDUFA date of August 19, 2023 for DAXXIFY® for the treatment of cervical dystonia.
- Conference call and webcast today at 4:30 p.m. ET.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 8, 2023-- Revance Therapeutics, Inc. (RVNC), today reported financial results for the second quarter ended June 30, 2023 and provided a corporate update.
Financial Highlights
Total revenue for the second quarter ended June 30, 2023 was $58.1 million compared to $28.4 million for the same period last year, representing an increase of 104.9% primarily due to the sales growth of the RHA® Collection of dermal fillers and the commercialization of DAXXIFY®. Revenue for the second quarter included $31.8 million of RHA® Collection revenue, $22.6 million of DAXXIFY® revenue and $3.7 million of service revenue. Revenue for the six months ended June 30, 2023 was $107.5 million compared to $53.6 million for the same period in 2022.
Selling, general and administrative (SG&A) expenses for the three and six months ended June 30, 2023 were $77.4 million and $143.4 million compared to $47.8 million and $92.9 million, respectively, for the same periods in 2022, presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The quarterly increase was primarily due to higher sales and marketing expenses related to DAXXIFY® and the RHA® Collection. Excluding depreciation, amortization and stock-based compensation, non-GAAP SG&A expenses were $64.2 million and $117.8 million, respectively, for the three and six months ended June 30, 2023.
Research and development (R&D) expenses for the three and six months ended June 30, 2023 were $22.8 million and $46.0 million compared to $24.9 million and $55.6 million, respectively, for the same periods in 2022. The quarterly decrease was primarily due to the effects of capitalizing certain manufacturing-related expenses for DAXXIFY®. Excluding depreciation, amortization and stock-based compensation, non-GAAP R&D expenses were $19.0 million and $36.9 million, respectively, for the three and six months ended June 30, 2023.
Total operating expenses for the three and six months ended June 30, 2023 were $123.6 million and $231.0 million compared to $86.2 million and $173.7 million, respectively, for the same periods in 2022. Excluding costs of revenue, depreciation, amortization and stock-based compensation, non-GAAP operating expenses were $83.2 million and $154.7 million, respectively, for the three and six months ended June 30, 2023.
Net loss for the three and six months ended June 30, 2023 was $67.3 million and $127.1 million, respectively, compared to a net loss of $61.4 million and $125.8 million for the same periods in 2022.
Cash, cash equivalents and short-term investments as of June 30, 2023 were $319.7 million.
At-the-market (ATM) program. During the second quarter, the company issued 3.2 million shares of common stock pursuant to the company’s ATM offering, which provided net proceeds of $100 million.
Note purchase agreement with Athyrium Capital. On August 8th, Revance and Athyrium Capital amended the company’s existing Note Purchase Agreement entered into on March 18, 2022. Pursuant to the amendment, the committed 8.5% Second Tranche note was reduced from $100 million to $50 million, and the uncommitted Third Tranche note was increased from $100 million to $150 million. The company expects to issue its Second Tranche note of $50 million on or before August 31, 2023, provided certain conditions are met.
“We are very pleased with our strong Q2 performance highlighted by DAXXIFY’s first full quarter of launch and the continued growth of the RHA® Collection. With regards to DAXXIFY®, we remain very encouraged by the product’s performance, uptake, and ongoing demand. Coupled with the strong execution of our commercial team, we continue to believe we have the right people, products and strategy in place to realize our blockbuster potential in aesthetics,” said Chief Executive Officer, Mark J. Foley. “Given our growth, we have taken prudent steps to significantly bolster our financial position to ensure that we have the necessary resources to support our aesthetics business while also preparing for our entry into the therapeutics market. We believe we are well positioned for our opportunities ahead and look forward to sharing more on our business and outlook at our upcoming Investor Day in September.”
Second Quarter Highlights and Subsequent Updates
Total DAXXIFY® sales generated through Q2 of 2023 was $49.0 million, which surpassed the total sales generated by any competitor to Botox® in their first launch year.
The onboarding of 50 additional aesthetic salespeople was completed in the second quarter 2023, bringing the company’s total aesthetic sales force to more than 150 people.
Accounts across Revance’s aesthetic portfolio totaled over 6,000 at the end of the second quarter 2023.
Revance launched its first unbranded, “Break Up with Botox®”, direct-to-consumer campaign, driving strong consumer awareness across key channels and platforms. Since its initiation in June, the targeted campaign garnered 57 million impressions and over 9 million views.
In July, the U.S. Food and Drug Administration (FDA) approved the expansion of RHA® 4’s label to include cannula use. RHA® 4 is indicated for the correction of moderate to severe dynamic facial wrinkles and folds, such as nasolabial folds.
Gross payment volume (GPV) for the OPUL® Relational Commerce platform totaled $173 million for the second quarter 2023 and $697 million for the trailing-twelve months ended June 30, 2023.
Fosun Pharma’s biologics license application (BLA) for DAXXIFY® for cervical dystonia was accepted for review by China’s National Medical Products Administration (NMPA). This is Fosun Pharma’s second BLA acceptance for DAXXIFY® by China’s NMPA.
Financial Outlook
Revance expects 2023 GAAP operating expenses to be $460 million to $480 million and non-GAAP operating expenses, which exclude costs of revenue, depreciation and amortization and stock-based compensation to be $320 million to $340 million. Revance expects 2023 non-GAAP research and development expenses to be $80 million to $90 million. The company’s non-GAAP operating expense guidance for 2023 primarily reflects increased investments in its aesthetics commercial infrastructure, including sales team expansion, DAXXIFY® and RHA® Collection commercial investment, and biosimilar partnership investment.
With current cash, cash equivalents and short-term investments, $50 million in notes the company plans to issue through Athyrium Capital, provided certain conditions are met, and anticipated revenues and expenditures, management projects that the company will be funded to cash flow break-even.
Conference Call
Revance will host a corresponding conference call and a live webcast at 1:30 p.m. PT/4:30 p.m. ET on August 8, 2023 to discuss its financial results and provide a corporate update. Individuals interested in listening to the conference call may do so by dialing (888) 330-3637 or from the webcast link in the investor relations section of the company's website at: www.revance.com.
A replay of the call will be available beginning August 8, 2023, at 4.30 p.m. PT/7.30 p.m. ET until November 9, 2023 at 4.30 p.m. PT / 7.30 p.m. ET. To access the replay, please register through the webcast link found in the investor relations section of the company’s website. The webcast will be available in the investor relations section on the company's website for 90 days following the completion of the call.
Wholeheartedly agree!! Tomorrow I step in and grab some shares before it takes that next leg up. Thanks for making me aware of this opportunity sir!!
Put me down for a more conservative number than our colleague, Joe. My SWAG for Daxi sales in Q2 are $27.5 Million. That shared I would enjoy being wrong and see sales more towards Joe’s number of $35 Million. Cheers
Are you referring to Monday, Aug 14th, 8:30 AM discussing earnings? TIA
Wholeheartedly agree!! And LOL to the $100 word “umbrage”. Best word usage of the evening….so far!
Thank you for sharing jbog. This type of feedback and research is so very helpful in setting (resetting) expectations for individuals that are invested in RVNC such as myself. Next Tuesday will be another learning experience for me and others that had hopes of a very strong quarter. Much appreciated.
Regards….
Hi flo, what is your perspective on what the stock is undervalued? TIA
Rich
Hi Vin,
Thanks sir, appreciate the comments. I’ve had IMGN on my watch list for some time and with the slight pullback we are seeing presently, may finally jump in. Outside of ENTA, I’m also significantly invested in RVNC and GMDA. I’ve owned PFE and COLL on and off over the last 5 years. That’s it as far as biotechs for now.
Best,
Rich
Joe, not a funny money bet with me. I believe in the future of the company and have invested exactly $275,400 YTD. Presently underwater and not the least concerned. What I really like about ENTA is they don’t keep issuing shares to get cash…unlike others I have invested in historically. Between RSV, 235 and other molecules, not to mentioned the litigation against PFE, I soundly believe my investment will have a solid return for me. In all transparency, my dollar cost average is $25.04. So from my perspective my friend, jumping in now is a very smart approach. JMHO
Best,
Rich
Thank you gents for sharing and your insights! Best…
“Yeah, just looked into it a bit more and it looks to me like they’re raising enough to start launching and buy time to find a partner or a suitor.
If neither of those happen in the next qtr they’ll probably be back to the well again for a bigger chunk of shares.”
Almost four months since FDA approval. You guys are correct, given the big picture, we are looking down the barrel of another raise SOON for a significant amount of shares given the lack of a partnership. Life in the fast last for biotech!!
“One other company i am invested in, PLX with a similar pattern, namely a surge after a (much awaited) FDA approval, to be followed by a constant share decline.
A very strange phenomenon!”
Yes sir, another example highlighting a significant pullback on FDA approval. Possibly these type of biotech companies are being shorted on “good news” knowing that their will be a period (several quarters) of time before these companies are cash flow positive. Plenty of time to cover the short position. That’s my only guess at this point.
Anyone else have a theory?
Happy Weekend all!!
Excellent points I had not considered, thank you kindly.
“To maximize the opportunity, however, RVNC will need a partner to co-market Daxxify for therapeutic indications.”
We are essentially three weeks from an FDA ruling on “potential” approval for CD. It strikes me odd there has been no announcement on a partner for sales into this medical/therapeutic indication. I sure hope the Executives are laser focused on launching immediately for CD pending approval.
“The probability of a near-term equity raise depends on how the share price responds to FDA approval in CD and to the 2Q23 financial results.”
Speaking of probabilities, one of the reasons I invested in RVNC was the notion they would be eventually bought out at a market capitalization of $4-5 Billion after the FDA granted approval for the medical treatment of CD and a pathway to profitability.
Do you (and others here) still believe this is viable opportunity for the company to be purchased outright? TIA
"Why was TARS down sharply yesterday on the FDA-approval news (although it partially recovered today)?"
Unfortunately I do not know exactly what caused the sell off. The company developed and got FDA approval for an eyelid disorder, Demodex blepharitis, a common albeit overlooked external eye disease caused by "mites" that irritate the ocular area. It is reported that 25 Million in the USA struggle with this condition. Clearly there is a market for a medical treatment to help those struggling with this condition (which sounds gross, mites, dust mites). Historically speaking, tea tree oil has been used with limited success based on my interpretation of what I was able to review.
Perhaps the sell off might be attributed to some extent that a few Executives executed the sales of stock once the news of FDA approval. As we typically witness, news of FDA approval is a signal some shareholders to divest and move on. I believe we witnessed this with RVNC and to a lesser degree, GMDA, both companies I am invested in.
Apropos the market size and opportunity for TARS, I read that "The rate of Demodex (mite) infestation increases with age, being observed in 84% of the population at age 60 and 100% of those older than 70 years". What will be interesting to research, is what does this market opportunity imply apropos sales revenue and corresponding profit margin for the approved drug, Xdemvy (TP-03). I am still researching this company (TARS) and will share anything interesting here. Respectfully, Rich
Tarsus granted FDA nod for lead asset
Tarsus Pharmaceuticals (NASDAQ:TARS) announced Tuesday that the FDA greenlighted its lead asset TP-03 as a treatment for the eyelid disorder Demodex blepharitis.
Demodex blepharitis affects approximately 25M eyecare patients in the U.S., with a prevalence of 1 out of every 12 adults.
The treatment, branded as Xdemvy, is the first and only FDA-approved treatment directly targeted at Demodex mites, the causative agent of Demodex blepharitis, Tarsus (TARS) said.
The FDA’s decision is backed by data from two randomized trials in which Xdemvy outperformed a comparative agent in terms of eyelid improvement over six weeks. The eyecare solution was also found to be safe and well tolerated in the trials. The company expects to launch Xdemvy as a prescription medicine by the end of August.
Despite the approval, Tarsus (TARS) shares fell for the second straight session Tuesday following insider sales by the company’s chief executive, Bobak Azamian, and chief commercial officer, Aziz Mottiwala, last week as part of two previously adopted trading plans.
Market Capitalization $483M. FDA approval doesn’t always mean Wall Streets buy into the company.
Case in point, GMDA which I have a small position in as well with recent FDA approval.
Interesting times….
One element outside of announcing a partnership or a buyout, I’m very much interested in hearing from GMDA executives about the first patient treated successfully with details on how the patient faired apropos the treatment itself and anything else of material considerations. This type of communication I believe would significantly elevate the PPS and give credibility/credence to GMDA’s FDA approved treatment. JMHO
Best…
“Meanwhile, they've dot plotted out the pps course with their new "partner" for raise and this partner has been shorting/maipulating the holy bejuses out of this thing as per the plan.”
You have to admit, they are doing a darn good job of pushing the PPS down! Great opportunity for those that haven’t jumping in yet. JMHO
Wholeheartedly agree with you 100%. I’m not the least concerned. By the end of 2023, we will have a huge backing and partnership of some type. Lock it in!!
“Some apparently “think” deals can be worked out in a matter of weeks, which is nonsense”
Wholeheartedly agree sir. As to your other points, I also believe the same as you, in that the 235 data was very good. Further, I would suggest at this point, that a partnership deal will be in place by the end of September (Q3 calendar). The EV makes ENTA and their programs an EXCELLENT investment.
Best to all….Rich
Outside of stating the obvious, would you care to enlighten the board which biotech stocks you are invested in or have interest in? Kind regards
Wholeheartedly agree. Nice run up so far. My guess at this point is they will have a significant announcement by end of September. Having one full quarter at the end of 2023 will give them ample opportunity to demonstrate to the world and medical community they offer something very compelling.
With the company having an FDA approval, it’s only a matter of time. If things are as dire financially, as they might be, I suspect a complete buyout is more likely. Just my opinion.
I’m happy just to sit back and watch this flourish quite honestly.
I’ve done the same with my other two significant holdings the last two weeks. RVNC and ENTA. Patiently adding and looking forward to how all three investments play out!! Cheers
Wholeheartedly agree. That said, I disagree with the market sentiment and bought more shares today. That “average down” mantra I find myself doing more of late. Best…
At least a double by the end of 2023!!
Nice job!! Seemingly we are all on the same page.
Added at $1.69…
You are one interesting individual.
As previously cited, I’m “long” on ENTA and not worried about being 15% off. It’s nearly impossible to call a “bottom” so to speak. I look forward to the future of ENTA and the projects they are working on.
Regards
Time to add more to my portfolio. Never thought we would see PPS this low again. Cheers all….
Thanks Vin for your comments. I have faith and strongly believe both companies (ENTA, RVNC) by the end of the calendar year will be more appropriately valued as events unfold. My last purchase of ENTA at $24 I thought was an excellent deal. Clearly I could have waited a little longer.
Apropos IMGN, fun to watch it continue its climb north. Congrats sir!!
ENTA: Excellent point I completely overlooked admittedly. Thank you for also highlighting the investment (% shares)these Executives already have.
As to RVNC Executives, perhaps they too may be limited in what they may be able to do especially given near term PDUFA date for sBLA in CD.
Apropos RVNC and ENTA, it sure would be reasonable and reassuring to see the respective Executives step up and do some serious buying of stock at these grossly undervalued prices. Hard to fathom actually. I’m long term hold on both, not concerned, just bewildered.
Thanks Dew for sharing. Clearly the data from 235 was impressive enough for other companies to comment and acknowledge. I hope that this helps step up the pace of partnering. I do believe “timing” of a partnership deal is critical in that IF COVID variant(s) currently spreading in China along with other viruses like RSV start to surge later this year, ENTA will be in led with a potential treatment (of course down the road) especially for the immune compromised. Thx again!!
Congratulations Roy. Very impressive. Between DE and CAT, clearly points to great opportunities when patient and prudent about research.
LOL!!! That’s an understatement.