Replies to post #8792 on Revance Therapeutics Inc (RVNC)

[alertmeipp]

If they have another 50mm or so in the bank, then this going concern designation wouldn’t be here.

It really just means they need to refinance or raise equity within 12 months to keep going. I think it is somewhat expected they would need additional capital but the question was at what price. The hope was they ramp up the sales quickly so they can capital at better stock price.

It is clearly not a pretty picture now since Foley and management has now wasted months on this stupid buyout which slowed down the product ramp up. Ie - they might now need to raise capital with lower stock price.

It is bad but Dont think its a shocking development.

[iwfal]

Going concern is an accounting standard requirement and failure to disclose could lead to auditors refusing to sign off on the financials, or potentially lead to investor fraud liabilities. It has nothing to do with forcing tender.

“Going concern” is a management decision, per standard accounting rules. It forces the accountants to do ‘breakup accounting’, altho i don’t have any idea what that means in practice. In any case, it seems entirely reasonable to suppose that they would choose to change status for a variety of reasons beyond pure accounting.

Maybe the filler/toxin markets are not so hot anymore, as echoed on cafe pharma boards and earnings (EOLS took a 15% hit couple days ago).

EOLS had an 8% Q vs Q drop in neuromodulator sales. AND it’s historically a seasonably weak quarter for neuromodulators generally. AND clearly RVNC management is not pushing sales at all because they’ve been distracted (see RHA implosion). YET RVNC neuromodulator sales are only down 1% Q vs Q. IE there is now immense pull from users. . Foley was an idiot for selling now.

That said, the cash draw is a problem, and interest rates are still high. They really are running out of room now, even if they wouldn’t have had Foley done even one of 3 or 4 very easy decisions correctly.