Revance Therapeutics Inc (RVNC)

[DewDiligence]

RVNC’s guidance for operating expenses includes the cost of running the Daxxify fill/finish operation at PCI Pharma, the second contract facility (along with Ajinomoto). Because the PCI Pharma site has not yet been FDA- approved for Daxxify fill/finish, RVNC has to expense production costs at this facility rather than carrying the finished product as inventory on the balance sheet.

The above was discussed on RVNC’s Investor Day webcast, and I commented on it in #msg-172854984.

The salient point is that RVNC’s operating expenses are not “profligate.”