– Conference call and webcast today at 4:30
p.m. ET –
Revance Therapeutics, Inc. (Nasdaq: RVNC), a biotechnology
company pioneering new innovations in neuromodulators for aesthetic
and therapeutic indications, today reported financial results for
the quarter ended September 30, 2019, and provided a corporate
update.
Third Quarter 2019 and Subsequent Updates
- Board Appointed Mark J. Foley as President and Chief
Executive Officer (CEO). In October, Revance announced
that Mark Foley had assumed the role of President and CEO, having
served on the Revance Board for the prior two years. He brings more
than 25 years of operational and investment experience in the
healthcare arena. Previously, Mr. Foley served as Chairman,
President and CEO of ZELTIQ Aesthetics from 2012 to 2017, where he
led the company through a period of significant transformation and
growth, culminating in its acquisition by Allergan.
- BLA On Track for Submission in November 2019. Revance
plans to submit its Biologics License Application (BLA) to the U.S.
Food and Drug Administration (FDA) for DaxibotulinumtoxinA for
Injection (DAXI) for the treatment of glabellar lines in November
2019.
- Enrollment Now Complete in Phase 2 Trials for DAXI in Both
Forehead Lines and Lateral Canthal Lines. In July, Revance
completed enrollment in its Phase 2 clinical trial of DAXI for
forehead lines. In August, the company also completed enrollment in
its Phase 2 trial of DAXI in lateral canthal lines (crow’s feet).
Topline results for both trials are expected in the first half of
2020.
- Completed Enrollment in ASPEN-1 Phase 3 Trial of DAXI in
Cervical Dystonia. Today, Revance announced completion
of enrollment in the company’s ASPEN-1 Phase 3 clinical trial for
DAXI for the treatment of cervical dystonia (CD). In total, 301
adult patients were enrolled at 60 sites across the U.S., Canada
and Europe. Topline data from this Phase 3 trial is expected in the
second half of 2020.
“Revance is entering a pivotal period, given the large number of
value-inflection points we have created for the company, beginning
in just a few weeks with the anticipated submission of our first
BLA for DAXI with the FDA,” said Mark J. Foley, President and Chief
Executive Officer at Revance. “In 2020, we expect to report topline
results for three Phase 2 clinical trials, as well as our ASPEN-1
Phase 3 trial in cervical dystonia. In addition, we anticipate 2020
will see FDA approval for, and the commercial launch of, our
long-acting neuromodulator, DAXI, in glabellar lines. I’m thrilled
to be taking the helm of this company at such a dynamic time. I
want to take this opportunity to acknowledge everyone who has
helped position Revance for the momentous period we are
entering.”
Financial Highlights
Cash, cash equivalents and short-term investments as of
September 30, 2019 were $209.0 million. In August, Mylan was
provided an extension to the collaboration and license agreement to
defer its decision to move forward with the development of a
biosimilar to BOTOX® in exchange for a $5.0 million payment, which
is expected to be received in fourth quarter of 2019. A decision on
whether Mylan intends to proceed is expected by April 30, 2020.
Revenue for the quarter ended September 30, 2019 was $46
thousand compared to $2.4 million for the same period in 2018. The
revenue recognized represents the portion of revenue earned from
the $30 million combined upfront and incremental payments from
Mylan under the biosimilar collaboration and license agreement.
Accordingly, revenue for the nine months ended September 30, 2019
was $0.3 million compared to $3.2 million for the same period in
2018.
Research and development expenses for the three and nine
months ended September 30, 2019 were $25.9 million and $75.4
million compared to $21.8 million and $67.0 million for the same
periods in 2018, respectively. The change in research and
development expenses is primarily due to the initiation and
continuation of clinical trials and studies for multiple
therapeutic and aesthetic indications and pre-BLA filing activities
for DAXI for the treatment of glabellar lines.
General and administrative expenses for the three and
nine months ended September 30, 2019 were $16.7 million and $43.2
million compared to $14.2 million and $40.5 million for the same
periods in 2018, respectively. The increase in general and
administrative expenses is primarily due to increased costs related
to personnel and infrastructure build-out.
Total operating expenses for the three and nine months
ended September 30, 2019 were $42.6 million and $118.6 million
compared to $36.0 million and $107.5 million for the same periods
in 2018, respectively. Stock-based compensation for the three and
nine months ended September 30, 2019 was $4.3 million and $12.9
million, respectively. When excluding depreciation and stock-based
compensation, total operating expenses for the three and nine
months ended September 30, 2019 were $37.5 million and $103.6
million, respectively.
Net loss for the three and nine months ended September
30, 2019 was $41.4 million and $114.1 million compared to $32.8
million and $102.0 million for the same periods in 2018,
respectively.
Near-Term Milestone Expectations
Aesthetics:
- Submission of a Biologics License Application (BLA) to the FDA
for DAXI for the treatment of glabellar (frown) lines in November
2019.
- Topline results from Phase 2 study of DAXI in forehead lines
expected in 1H 2020.
- Topline results from Phase 2 study of DAXI in lateral canthal
lines (crow’s feet) expected in 1H 2020.
Therapeutics:
- Completion of patient enrollment in Phase 2 plantar fasciitis
study expected in 4Q 2019.
- Completion of patient enrollment in Phase 2 upper limb
spasticity study expected in 1H 2020.
- Topline results from Phase 3 study of DAXI in cervical dystonia
expected in 2H 2020.
- Topline results from Phase 2 study of DAXI in plantar fasciitis
expected in 2H 2020.
2019 Financial Outlook
Revance reiterates its financial guidance provided in February
2019. Revance expects 2019 GAAP operating expense to be in the
range of $173 to $185 million and non-GAAP operating expense, which
excludes depreciation and stock-based compensation costs, to be in
the range of $148 to $158 million as driven by increased research
and development expenditures and launch preparation activities.
With five clinical programs and preparations to file the BLA
underway, Revance anticipates 2019 non-GAAP research and
development (R&D) expense to be $93 to $100 million. With the
successful capital infusion through partnering agreements in 2018
and an equity raise in January, management believes the company has
adequate cash reserves to fund its current operations through
2020.
Conference Call
Individuals interested in listening to the conference call may
do so by dialing 855-453-3827 for domestic callers, or 484-756-4301
for international callers and reference conference ID: 3774965; or
from the webcast link in the investor relations section of the
company’s website at: www.revance.com. A replay of the call will be
available beginning November 4, 2019 at 4:30 p.m. PT/7:30 p.m. ET
to November 5, 2019 at 4:30 p.m. PT/7:30 p.m. ET. To access the
replay, dial 855-859-2056 or 404-537-3406 and reference conference
ID: 3774965. The webcast will be available in the investor
relations section on the company's website for 30 days following
the completion of the call.
About Revance Therapeutics, Inc.
Revance Therapeutics is a Silicon Valley-based biotechnology
company, pioneering new innovations in neuromodulators for
aesthetic and therapeutic indications. Revance’s lead product
candidate, DaxibotulinumtoxinA for Injection (DAXI), combines a
proprietary stabilizing peptide excipient with a highly purified
botulinum toxin that does not contain human or animal-based
components. Revance has successfully completed a Phase 3 program
for DAXI in glabellar (frown) lines, delivering unprecedented
efficacy and long-lasting duration of effect, and is pursuing U.S.
regulatory approval in 2020. Revance is also evaluating DAXI in
forehead lines and lateral canthal lines (crow’s feet), as well as
in three therapeutic indications – cervical dystonia, adult upper
limb spasticity and plantar fasciitis, with plans to study
migraine. Beyond DAXI, Revance has begun development of a
biosimilar to BOTOX®, which would compete in the existing
short-acting neuromodulator marketplace. Revance is dedicated to
making a difference by transforming patient experiences. For more
information or to join our team, visit us at www.revance.com.
“Revance Therapeutics” and the Revance logo are registered
trademarks of Revance Therapeutics, Inc.
BOTOX® is a registered trademark of Allergan, Inc.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements related to Revance Therapeutics' 2019
financial outlook, milestone expectations, expected cash runway and
other financial performance; the process and timing of, and ability
to complete, current and anticipated future clinical development of
our investigational drug product candidates; the initiation,
design, enrollment, submission, timing and results of our clinical
studies, including the near-term milestone expectations described
above; development of a biosimilar to BOTOX®; results of our
non-clinical programs; statements about our business strategy,
timeline and other goals and market for our anticipated products,
plans and prospects, including our pre-commercialization plans and
timing of our anticipated BLA submission to treat glabellar (frown)
lines and potential regulatory approach and product launch;
statements about our ability to obtain, and the timing relating to,
regulatory approval with respect to our drug product candidates;
and potential benefits of our drug product candidates and our
excipient peptide and other technologies.
Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from our expectations. These risks and uncertainties include, but
are not limited to: the outcome, cost, and timing of our product
development activities and clinical trials; the uncertain clinical
development process, including the risk that clinical trials may
not have an effective design or generate positive results; our
ability to obtain and maintain regulatory approval of our drug
product candidates; our ability to obtain funding for our
operations; our plans to research, develop, and commercialize our
drug product candidates; our ability to achieve market acceptance
of our drug product candidates; unanticipated costs or delays in
research, development, and commercialization efforts; the
applicability of clinical study results to actual outcomes; the
size and growth potential of the markets for our drug product
candidates; our ability to successfully commercialize our drug
product candidates and the timing of commercialization activities;
the rate and degree of market acceptance of our drug product
candidates; our ability to develop sales and marketing
capabilities; the accuracy of our estimates regarding expenses,
future revenues, capital requirements and needs for financing; our
ability to continue obtaining and maintaining intellectual property
protection for our drug product candidates; and other risks.
Detailed information regarding factors that may cause actual
results to differ materially from the results expressed or implied
by statements in this press release may be found in Revance's
periodic filings with the Securities and Exchange Commission (the
"SEC"), including factors described in the section entitled "Risk
Factors" of our quarterly report on Form 10-Q filed November 4,
2019. These forward-looking statements speak only as of the date
hereof. Revance disclaims any obligation to update these
forward-looking statements.
Use of Non-GAAP Financial Measures
Revance has presented certain non-GAAP financial measures in
this release. This release and the reconciliation tables included
herein include total non-GAAP operating expense and non-GAAP
R&D expense, both of which exclude depreciation, stock-based
compensation, and non-recurring milestone costs. Revance excludes
depreciation, stock-based compensation, and non-recurring milestone
costs because management believes the exclusion of these items is
helpful to investors to evaluate Revance's recurring operational
performance. Revance management uses these non-GAAP financial
measures to monitor and evaluate its operating results and trends
on an on-going basis, and internally for operating, budgeting and
financial planning purposes. The non-GAAP financial measures should
be considered in addition to results prepared in accordance with
GAAP, but should not be considered a substitute for or superior to
GAAP results.
REVANCE THERAPEUTICS,
INC.
Condensed Consolidated Balance
Sheets
(In thousands, except share
and per share amounts)
(Unaudited)
September 30,
December 31,
2019
2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
58,922
$
73,256
Short-term investments
150,110
102,556
Accounts receivable
5,000
27,000
Prepaid expenses and other current
assets
6,536
5,110
Total current assets
220,568
207,922
Property and equipment, net
14,917
14,449
Operating lease right of use assets
27,078
—
Restricted cash
730
730
Other non-current assets
2,519
3,247
TOTAL ASSETS
$
265,812
$
226,348
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable
$
6,902
$
8,434
Accruals and other current liabilities
18,694
14,948
Deferred revenue, current portion
5,241
8,588
Operating lease liabilities, current
portion
3,317
—
Total current liabilities
34,154
31,970
Derivative liability associated with the
Medicis settlement
2,892
2,753
Deferred revenue, net of current
portion
50,707
42,684
Operating lease liabilities, net of
current portion
26,778
—
Deferred rent
—
3,319
TOTAL LIABILITIES
114,531
80,726
STOCKHOLDERS’ EQUITY
Convertible preferred stock, par value
$0.001 per share — 5,000,000 shares authorized, and no shares
issued and outstanding as of September 30, 2019 and December 31,
2018
—
—
Common stock, par value $0.001 per share —
95,000,000 shares authorized as of September 30, 2019 and December
31, 2018; 44,108,407 and 36,975,203 shares issued and outstanding
as of September 30, 2019 and December 31, 2018, respectively
44
37
Additional paid-in capital
950,073
830,368
Accumulated other comprehensive income
(loss)
42
(8
)
Accumulated deficit
(798,878
)
(684,775
)
TOTAL STOCKHOLDERS’ EQUITY
151,281
145,622
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
265,812
$
226,348
REVANCE THERAPEUTICS,
INC.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Revenue
$
46
$
2,362
$
324
$
3,242
Operating expenses:
Research and development
25,847
21,848
75,368
66,968
General and administrative
16,739
14,155
43,245
40,505
Total operating expenses
42,586
36,003
118,613
107,473
Loss from operations
(42,540
)
(33,641
)
(118,289
)
(104,231
)
Interest income
1,329
996
4,495
3,099
Interest expense
—
—
—
(44
)
Change in fair value of derivative
liability associated with the Medicis settlement
(68
)
(45
)
(139
)
(150
)
Other expense, net
(130
)
(144
)
(170
)
(626
)
Net loss
(41,409
)
(32,834
)
(114,103
)
(101,952
)
Unrealized gain (loss) and adjustment on
securities included in net loss
(74
)
90
50
(133
)
Comprehensive loss
$
(41,483
)
$
(32,744
)
$
(114,053
)
$
(102,085
)
Basic and diluted net loss
$
(41,409
)
$
(32,834
)
$
(114,103
)
$
(101,952
)
Basic and diluted net loss per share
$
(0.96
)
$
(0.91
)
$
(2.67
)
$
(2.82
)
Basic and diluted weighted-average number
of shares used in computing net loss per share
43,314,831
36,272,445
42,730,983
36,116,745
REVANCE THERAPEUTICS,
INC.
Reconciliation of GAAP
Operating Expense to Non-GAAP Operating Expense
(In thousands)
(Unaudited)
Three Months Ended September
30, 2019
Nine Months Ended September
30, 2019
Operating expense:
GAAP operating expense
$
42,586
$
118,613
Adjustments:
Stock-based compensation
(4,303
)
(12,882
)
Depreciation
(734
)
(2,152
)
Non-GAAP operating expense
$
37,549
$
103,579
REVANCE THERAPEUTICS,
INC.
Reconciliation of GAAP R&D
Expense to Non-GAAP R&D Expense
(In thousands)
(Unaudited)
Three Months Ended September
30, 2019
Nine Months Ended September
30, 2019
R&D expense
GAAP R&D expense
$
25,847
$
75,368
Adjustments:
Stock-based compensation
(2,106
)
(6,438
)
Depreciation
(492
)
(1,525
)
Non-GAAP R&D expense
$
23,249
$
67,405
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version on businesswire.com: https://www.businesswire.com/news/home/20191104005237/en/
INVESTORS Revance Therapeutics, Inc.: Jeanie Herbert,
714-325-3584 jherbert@revance.com or Gilmartin Group, LLC.:
Laurence Watts, 619-916-7620 laurence@gilmartinir.com
MEDIA Revance Therapeutics, Inc.: Sara Fahy, 949-887-4476
sfahy@revance.com or General Media: Y&R: Jenifer Slaw,
347-971-0906 jenifer.slaw@YR.com or Trade Media: Nadine Tosk,
504-453-8344 nadinepr@gmail.com
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