GENEVA - Swiss medical aesthetics company Teoxane SA has proposed to acquire Revance Therapeutics, Inc. (NASDAQ:RVNC), a biotechnology firm, for $3.60 per share in cash. According to InvestingPro data, Revance, currently valued at $324.15 million, has been facing significant financial challenges with negative EBITDA of -$187.62 million in the last twelve months. This offer, announced today, represents a 16% premium over the price set in Revance's amended agreement with Crown Laboratories, which was $3.10 per share. InvestingPro's Fair Value analysis suggests Revance may be undervalued at current levels, despite its stock declining nearly 63% over the past year.
Teoxane, which currently holds a 6.2% stake in Revance, argues that its proposal is a more advantageous option compared to the existing deal with Crown. The company has stated readiness to proceed swiftly towards completing the transaction, highlighting that it has already performed due diligence using publicly available information and would only require limited additional confirmation.
The potential acquisition is subject to regulatory approvals, which Teoxane anticipates will not pose significant risks or cause delays. The company notes that its U.S. sales are largely conducted through Revance's platform and that there are no significant overlaps in geography or product portfolio that would likely complicate the process. Revance has maintained strong liquidity with a current ratio of 4.12, though InvestingPro analysis reveals the company is rapidly burning through cash. Get access to 7 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
With substantial cash reserves and profitability, Teoxane is in discussions with financing sources to secure committed financing for the purchase. It plans to provide fully underwritten binding commitment letters before signing a definitive agreement and has stated that the deal will not include a financing contingency.
Jefferies LLC is serving as the financial advisor to Teoxane, with legal counsel provided by Davis Polk & Wardwell LLP in the USA and Walder Wyss SA in Switzerland.
Teoxane is known for its dermal fillers, which utilize proprietary RHA technology and are sold in over 90 countries. The company employs over 600 people globally and holds a strong innovation track record in the hyaluronic acid fillers market, with 15 formulations and over 180 patent titles. Teoxane's products, through their partnership with Revance, have achieved the #3 market position in the U.S., and the company is preparing to launch a range of dermo-cosmetic products in the U.S. this year.
The information regarding this acquisition proposal is based on a press release statement from Teoxane SA.
In other recent news, Revance Therapeutics has been navigating several significant developments. The biopharmaceutical company has amended its merger agreement with Crown Laboratories, clarifying the Expiration Time calculation mechanism. This follows an announcement of a 20% boost in total net revenue to $65.4 million, largely owing to increased unit sales and a surge in net product revenue in its aesthetics division. Furthermore, the company's product, DaxibotulinumtoxinA for Injection, has secured approval from China's National Medical (TASE:PMCN) Products Administration, marking a substantial expansion into the Chinese market.
Revance Therapeutics is also in the midst of a merger with Crown Laboratories, a private global skincare company, in a deal valued at approximately $924 million. Nevertheless, this proposed merger has led to downgrades of Revance's stock rating by William Blair and Stifel to Market Perform and Hold, respectively, while Mizuho (NYSE:MFG) continues to hold a Neutral rating on Revance shares.
The company has repeatedly postponed the tender offer commencement for its outstanding common stock shares due to ongoing discussions with Crown Laboratories and Reba Merger Sub, collectively known as the Buyer Parties. These delays hint at potential changes in the offer's terms. Despite these challenges, data from InvestingPro indicates that Revance maintains a strong current ratio of 4.12, demonstrating robust short-term liquidity. However, the company remains unprofitable, with analysts not anticipating profitability this year. These are recent developments concerning Revance Therapeutics.
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