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Revance and Crown extend merger offer date to November 26

Published 20/11/2024, 08:16 am
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NASHVILLE, TN - Revance Therapeutics, Inc. (NASDAQ:RVNC), a Delaware-incorporated pharmaceutical company, has announced a further extension to the commencement date of the tender offer for all outstanding shares of its common stock. The new date, agreed upon with Crown Laboratories, Inc. and Reba Merger Sub, Inc. (collectively referred to as the Buyer Parties), is now set for November 26, 2024.

The extension, disclosed in a Form 8-K filed with the Securities and Exchange Commission (SEC) on Tuesday, follows ongoing discussions between Revance and the Buyer Parties. The parties had previously agreed to extend the tender offer commencement date to November 19, 2024, as part of the Merger Agreement initially set on August 11, 2024. The latest extension indicates that discussions could lead to further delays or changes to the terms of the Merger Agreement, including the offer price.

The tender offer is part of a planned merger between Revance and the Buyer Parties, which is subject to conditions and regulatory approvals. The delay suggests that the companies are still working through the complexities of the deal, which could have significant implications for the shareholders of Revance.

In other recent news, Revance Therapeutics has experienced significant developments. The company reported a 20% increase in total net revenue, reaching $65.4 million, primarily due to a 65% increase in units sold and a 27% rise in net product revenue in its aesthetics division. Furthermore, Revance's product, DaxinbotulinumtoxinA for Injection, received approval from China's National Medical (TASE:PMCN) Products Administration, marking a substantial expansion into the Chinese market.

Revance is also in the midst of a merger with Crown Laboratories, a private global skincare company, in a deal valued at approximately $924 million. However, this proposed merger has led to downgrades of Revance's stock rating by William Blair and Stifel to Market Perform and Hold, respectively. Despite these downgrades, Mizuho (NYSE:MFG) maintains a Neutral rating on Revance shares, viewing the delay in the tender offer as a delay rather than an indication of the deal falling through.

In parallel, Revance has extended the commencement date of a tender offer for all outstanding shares of its common stock, due to ongoing discussions with Teoxane SA. The outcome of these discussions may lead to modifications of the distribution agreement or further legal remedies sought by either party.

InvestingPro Insights

As Revance Therapeutics (NASDAQ:RVNC) navigates the extended timeline for its tender offer, InvestingPro data provides additional context for investors. The company's market capitalization stands at $390.24 million, reflecting the market's current valuation amid the ongoing merger discussions.

InvestingPro Tips highlight that Revance is "quickly burning through cash" and "not profitable over the last twelve months," which may explain the company's openness to merger opportunities. These financial challenges are underscored by the operating income margin of -75.39% for the last twelve months as of Q3 2024.

Despite these hurdles, Revance has shown a 25.82% revenue growth over the same period, reaching $256.94 million. This growth trajectory could be a factor in the ongoing negotiations and the extended timeline for the tender offer.

Investors should note that while the stock has experienced a significant price uptick over the last six months (32.12% total return), it has also seen a sharp decline in the past three months (-39.64% total return). This volatility may reflect market uncertainty surrounding the merger proceedings.

For a more comprehensive analysis, InvestingPro offers 8 additional tips for Revance Therapeutics, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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