Biotech Values

[DewDiligence]

Re: RVNC liquidity

RVNC’s 3/31/19 pro forma cash was $256.1M. This figure consists of the net current assets on the 3/31/19 balance sheet—excluding the “deferred revenue” line, which is an accounting artifact rather than bona fide liability (https://www.sec.gov/Archives/edgar/data/1479290/000147929019000050/rvncq11910q.htm#s6F955313026683DA87682C37877F2707 ).

The 3/31/19 pro forma cash of $256.1M was an increase of $71.6M relative to 12/31/18 (#msg-147253784). The $71.6M quarterly increase was due to: $108.0M net proceeds from the public offering announced on 1/17/19 (#msg-146164001); and 1Q19 operating cash burn of $36.4M.

RVNC’s guidance for 2019 operating cash burn is $148-158M (https://investors.revance.com/news-releases/news-release-details/revance-reports-first-quarter-2019-financial-results-and ). If we assume that April-May 2019 had operating cash burn at the midpoint of this range, then approximately $25.5M has been burned since 3/31/19, leaving current pro forma cash of approximately $230.6M.