Gold prices buoyed by tariff fears; US duties on 1-kilo bars spur supply concerns
Thursday, Mizuho (NYSE:MFG) analysts maintained a Neutral rating on Revance Therapeutics (NASDAQ:RVNC), a $382 million market cap company, with a steady price target of $3.65. The firm’s stance came in the wake of a significant development in the ongoing acquisition efforts by Crown. According to InvestingPro data, the company’s stock has shown strong returns over the past month despite burning through cash rapidly. Teoxane, which previously presented a competing proposal for Revance, has withdrawn its bid, citing challenges in securing the necessary financing within the timeline set by Crown’s amended tender offer.
The amended offer, dated January 21, increased the bid to $3.65 per share, a figure that Mizuho continues to see as the fair value for Revance stock. In light of Teoxane’s withdrawal and the tender of its shares to Crown, the analysts at Mizuho see a reduced probability of any further competing offers emerging for the biotechnology company.
Teoxane’s recent 13D filing revealed that the company could not obtain the committed financing required to support its proposal for Revance, leading to its decision to tender all its shares. This move effectively clears a major impediment that had been facing Crown in its acquisition attempt. InvestingPro analysis shows Revance’s current ratio of 4.12 indicates strong short-term liquidity, though the company remains unprofitable with a -$187.62 million EBITDA over the last twelve months.
Crown’s pursuit of Revance is expected to reach a conclusion soon, with the merger anticipated to close by February 6, 2025. Crown has stated that it does not plan to extend the outside termination date of the offer, which is set for February 7, 2025. This firm deadline underscores the advancing timeline of the acquisition process.
The developments are a notable step in the acquisition saga of Revance, a company specializing in aesthetic and therapeutic offerings. With the primary hurdle now removed, Crown’s path to acquiring Revance appears to be clear, aligning with the timeline it has set forth for the completion of the merger. For deeper insights into Revance’s financial health and detailed analysis, including additional ProTips and comprehensive metrics, visit InvestingPro.
In other recent news, Revance Therapeutics is at the center of multiple significant developments. The company has seen an increase in total net revenue of 20%, reaching $65.4 million, primarily due to increased unit sales and a rise in net product revenue in its aesthetics division. In addition, Revance’s product, DaxibotulinumtoxinA for Injection, has received approval from China’s National Medical (TASE:PMCN) Products Administration.
Revance is currently in merger talks with Crown Laboratories, a private global skincare company. Mizuho Securities maintains a Neutral rating on Revance, with a steady price target of $3.65. Teoxane, a Swiss medical aesthetics company, has proposed to acquire Revance for $3.60 per share in cash, a 16% premium over the price set in Revance’s amended agreement with Crown.
In partnership with Dermata Therapeutics, Revance has initiated a Phase 2a clinical trial for a novel treatment of primary axillary hyperhidrosis. The collaboration could potentially lead to the first approved needle-free intradermal delivery of a botulinum toxin product. These are recent developments concerning Revance Therapeutics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.