The fully-diluted share count* is now 48.0M, up from 41.2M (see #msg-144654911), an increase of 16.5%.
RVNC’s pro forma cash balance* is now about $300M, which is enough to comfortably cover operating expenses through the expected RT002 launch in 1H20, given the expected slowdown in R&D spending following the completion of the (very expensive) SAKURA-3 study (#msg-146126877).
The offering’s discount of 15.8% (relative to Tuesday’s close) is on the high side for a company of RVNC’s stature, so it’s reasonable to surmise that the execution could’ve been better; however, this offering is certainly not a deal-breaker for the investment thesis.
To the contrary, RVNC’s enterprise value (based on today’s anticipated price range) is barely more than $500M, which I would characterize as dirt cheap for a company that has completed phase-3 trials with a large, blemish-free dataset and has a product candidate that is very likely to become the best-in-class treatment in a rapidly expanding global market for both aesthetic and therapeutic indications.
Very poor CEO job by Dan. Looks like pricing is indicative of RT002 viewed as another ‘botox’ wannabe that will make no difference to AGN market share.
Now he is stupid to run additional trials and will surely run out of money necessitating another rise down the road. Any Partnership in Revance’s terms is increasingly unlikely.
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