Revance Reports First Quarter 2023 Financial Results, Provides Corporate Update
May 09 2023 - 04:05PM
Business Wire
Share On Facebook
- Q1 total revenue of $49.3 million, a YoY increase of 95.3%.
- Q1 RHA® Collection revenue of $30.3 million, a YOY increase of 45.3%.
- Q1 DAXXIFY® revenue of $15.4 million, driven by PrevU and March launch.
- FDA approves Ajinomoto Biopharma Services, Revance’s contract manufacturer for DAXXIFY®.
- Fosun Pharma’s BLA submission for DaxibotulinumtoxinA for Injection for glabellar lines accepted for review by China’s National Medical Products Administration (NMPA).
- Conference call and webcast today at 4:30 p.m. ET.
Revance Therapeutics, Inc. (RVNC), today reported financial results for the first quarter ended March 31, 2023 and provided a corporate update.
Financial Highlights
Total revenue for the first quarter ended March 31, 2023 was $49.3 million compared to $25.3 million for the same period last year, representing an increase of 95.3% primarily due to the growth of the RHA® Collection of dermal fillers and revenue from DAXXIFY®. Revenue for the first quarter included $30.3 million of RHA® Collection revenue, $15.4 million of DAXXIFY® revenue, $3.6 million of service revenue and $0.1 million of collaboration revenue.
Selling, general and administrative (SG&A) expenses for the first quarter ended March 31, 2023 were $66.0 million compared to $45.1 million for the same period in 2022, presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The 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 $53.6 million for the first quarter ended March 31, 2023, compared to $35.8 million for the same period in 2022.
Research and development (R&D) expenses for the first quarter ended March 31, 2023 were $23.2 million compared to $30.7 million for the same period in 2022. The decrease was primarily due to lower clinical trial and regulatory activity. Excluding depreciation, amortization and stock-based compensation, non-GAAP R&D expenses were $17.9 million for the first quarter ended March 31, 2023, compared to $24.1 million for the same period in 2022.
Total operating expenses for the first quarter ended March 31, 2023 were $107.4 million compared to $87.5 million for the same period in 2022. Excluding costs of revenue, depreciation, amortization and stock-based compensation, non-GAAP operating expenses for the first quarter ended March 31, 2023 were $71.5 million, compared to $59.9 million for the same period in 2022.
Net loss for the first quarter ended March 31, 2023 was $59.8 million compared to a net loss of $64.3 million for the same period in 2022.
Cash, cash equivalents and short-term investments as of March 31, 2023 were $273.9 million.
“We are very pleased to see our momentum continue into 2023 with outstanding Q1 results driven by DAXXIFY’s market introduction and the continued growth of the RHA® Collection,” said Mark J. Foley, Chief Executive Officer. “Importantly, DAXXIFY’s launch is off to a great start, and we remain highly encouraged by the strong enthusiasm for the product’s differentiated performance profile and the positive feedback we’ve received from both injectors and consumers. Further, with our contract manufacturer, Ajinonomoto Biopharma Services, now approved by the FDA, we believe we are well positioned to support the expected demand for DAXXIFY®, in both aesthetics and therapeutics, as we continue to scale our business.”
First Quarter Highlights and Subsequent Updates
RHA® Collection revenue increased 45.3% year-over-year to $30.3 million in the first quarter 2023.
DAXXIFY® launch off to a great start, generating $15.4 million in revenue for the first quarter 2023. Following the conclusion of the PrevU early experience program in March, Revance initiated the market introduction of DAXXIFY® with an initial focus on its existing practice partners.
Aesthetics sales force expansion completed. At the end of the first quarter, Revance hired ~50 additional sales representatives, bringing its total sales force to over 150 representatives.
Accounts across Revance’s aesthetics portfolio totaled over 5,500 at the end of first quarter 2023.
In March, the FDA approved the prior-approval supplement (PAS) for Ajinomoto Biopharma Services (Aji), Revance’s fill-finish contract manufacturer. With approval, Aji will support the commercial growth of DAXXIFY® and all inventory produced at Aji, prior to approval, has been released for commercial use.
Gross payment volume (GPV) for the OPUL® Relational Commerce platform totaled $180.4 million for the first quarter 2023 and $690 million for the trailing-twelve months ended March 31, 2023.
In April, Fosun Pharma’s biologics license application (BLA) submission for DaxibotulinumtoxinA for Injection for glabellar lines was accepted for review by China’s NMPA. Revance entered into a license agreement with Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. (Fosun Pharma Industrial), a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., in 2018, whereby Revance granted Fosun Pharma Industrial the exclusive rights to develop and commercialize (excluding manufacturing) DaxibotulinumtoxinA for Injection in mainland China, Hong Kong and Macau.
2023 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 expense 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 investments, and biosimilar partnership investments.
With current cash, cash equivalents and short-term investments, an additional $100 million of notes available for issuance through Athyrium Capital, and anticipated revenues and expenditures, management projects that the company’s U.S. aesthetics portfolio (DAXXIFY®, RHA® Collection, OPUL®) will be funded to cash flow breakeven.
