Revance Therapeutics, Inc. (NASDAQ: RVNC), a biotechnology company focused on the development, commercialization, and manufacture of botulinum toxin products for use in aesthetic and therapeutic indications, including dermatology and neurology, recently announced its operating results for the third quarter of 2016 ended September 30.
A summary of the company’s financial results highlighted research and development expenses of $10.3 million for the three-month period, $2.7 million less than in the same quarter of 2015. The decrease in expenses was largely attributable to a reduction in clinical trial activities. Research and development costs for the nine-month period were up $5.3 million.
The increase in overall expenses for the company came from an increase in personnel costs and manufacturing activities. In addition, the company recently acquired the necessary patents for botulinum toxin and put forward patent applications for Botulinum Toxin Research Associates, Inc. (BTRX).
On November 29, Aegis Capital Corp. (http://dtn.fm/b4cKx) initiated coverage on Revance Therapeutics, Inc., giving the company a ‘Buy’ rating with a price target of $28 per share. Aegis gave the ‘Buy’ rating based on the company’s opportunity to tap into the $3 billion botulinum toxin market, which is expected to reach $5.6 billion by 2020.
With Botox currently holding approximately 85% of the market share, Aegis reported that RT002, RVNC’s drug candidate for the treatment of moderate to severe glabellar lines in adults, will likely stand out from competitors in the market. This has been put down to the fact that, unlike other drugs, RT002 targets specific areas, effectively limiting its spread to other regions.
Aegis expects RT002 to gain a market share of approximately 21% by 2025, as long as phase III trials prove to be as positive as the company’s phase II BELMONT study. RT002 is also currently being evaluated as a potential treatment for plantar fasciitis, a condition for which corticosteroids are the first method of treatment. As a result, the drug could also be the first of its kind to gain FDA approval for this indication.
Other analysts have also taken an interest in Revance. According to Cerbat Gem Market News and Analysis (http://dtn.fm/GR6xu), “two research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock.”
Reiterating the optimism regarding Revance’s forward growth potential, a number of large investors have recently increased their stakes in the company. BlackRock Group Ltd., BlackRock Advisors LLC, FineMark National Bank & Trust, and American International Group, Inc. all raised their positions in Revance during the second and third quarters of this year by 4.3%, 15.8%, 750% and 10.9%, respectively. At close of market yesterday, the stock was selling at $16.80 per share.
For more information, visit the company’s website at www.revance.com