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On Thursday, Mizuho (NYSE:MFG) Securities maintained its Neutral rating on Revance Therapeutics (NASDAQ:RVNC) with a steady price target of $3.65, closely aligned with the current stock price of $3.63. According to InvestingPro data, while RVNC has shown strong returns over the past month, the stock’s RSI suggests it’s in overbought territory. The update follows a significant development in the ongoing acquisition process of Revance by Crown. Teoxane, which previously posed a challenge to the acquisition with a competing proposal, has now withdrawn its bid. Teoxane’s decision came after failing to secure the necessary financing within the time constraints set by Crown’s revised tender offer dated January 21, which proposed a purchase price of $3.65 per share. InvestingPro analysis reveals that Revance faces profitability challenges, with an EBITDA of -$187.62 million in the last twelve months.
The withdrawal of Teoxane’s proposal is seen as a pivotal moment, clearing a major impediment to the completion of Crown’s acquisition of Revance. Teoxane has also expressed its intention to tender all of its shares to Crown. Analysts at Mizuho believe that the probability of any further competing offers emerging is now very low, signaling a smoother path ahead for the acquisition.
Crown’s amended tender offer, which was enhanced to the current price target of $3.65, appears to be the final step towards finalizing the deal. The merger between Crown and Revance is anticipated to conclude by February 6, 2025, as per the latest information from the parties involved. Crown has indicated that it does not plan to extend the outside termination date beyond February 7, 2025.
The unfolding events suggest a nearing end to the acquisition saga, with market participants now expecting the transaction to be completed within the outlined timeframe. The tendering of Teoxane’s shares is a critical move, aligning with Crown’s offer and reinforcing the expectation that the merger will close as scheduled. InvestingPro data shows Revance maintains strong liquidity with a current ratio of 4.12, indicating solid short-term financial positioning. Subscribers can access 7 additional ProTips and comprehensive financial analysis in the Pro Research Report.
In other recent news, Revance Therapeutics has seen several significant developments. The company has amended its merger agreement with Crown Laboratories, resulting in an acquisition offer of $3.65 per share, a slight increase over Teoxane’s bid of $3.60 per share. This revised offer from Crown has been unanimously endorsed by Revance’s Board of Directors.
Meanwhile, Revance and Dermata Therapeutics have initiated a Phase 2a clinical trial for a novel treatment of primary axillary hyperhidrosis. The study will test the efficacy of Dermata’s product, Xyngari™, combined with Revance’s Daxxify®.
In parallel, Revance is in discussions with Teoxane for a potential superior takeover proposal, offering a 16% premium over the price set in the amended agreement with Crown Laboratories. Despite this, the merger with Crown Laboratories has led to downgrades of Revance’s stock rating by William Blair and Stifel, while Mizuho maintains a Neutral rating.
The company has reported a 20% increase in total net revenue, reaching $65.4 million, primarily due to increased unit sales and a rise in net product revenue in its aesthetics division. Additionally, Revance’s product, DaxibotulinumtoxinA for Injection, has received approval from China’s National Medical (TASE:PMCN) Products Administration. These are the recent developments concerning Revance Therapeutics.
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