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SAN DIEGO, CA - Dermata Therapeutics , Inc. (NASDAQ:DRMA) and Revance Therapeutics, Inc. (Nasdaq: NASDAQ:RVNC), two biotechnology firms, have announced a collaboration to start a Phase 2a clinical trial for a novel treatment of primary axillary hyperhidrosis, commonly known as excessive underarm sweating. Revance, with a market capitalization of $386 million and impressive revenue growth of 26% over the last twelve months, has shown strong momentum recently with an 11.85% gain in the past week. According to InvestingPro analysis, the company appears undervalued at current levels. The trial will assess the efficacy of a combined topical application of Dermata's product, Xyngari™, with Revance's botulinum toxin type A product, Daxxify®.
The study aims to determine the safety, tolerability, and effectiveness of the combination treatment compared to a placebo over a 16-week period. Approximately 48 patients with moderate-to-severe hyperhidrosis will be enrolled at various U.S. sites. The primary measure of success will be a significant reduction in sweat production.
Xyngari™ utilizes Dermata's Spongilla technology platform and is derived from a naturally sourced freshwater sponge. It is currently in a Phase 3 clinical program for moderate-to-severe acne and has been studied for psoriasis and rosacea. The product's unique mechanism involves microscopic spicules that penetrate the skin to create microchannels, allowing for the topical delivery of botulinum toxin without injections.
Daxxify® has already been approved in the United States for the treatment of moderate to severe glabellar lines and cervical dystonia. It is distinguished by its peptide formulation, which does not contain animal or human proteins.
This collaboration could lead to the first approved needle-free intradermal delivery of a botulinum toxin product if successful. Both companies have expressed enthusiasm about the potential of the combined treatment to offer a superior option to current injection-based therapies. While Revance maintains a healthy financial position with a current ratio of 4.12, InvestingPro subscribers can access 7 additional key insights and a comprehensive Pro Research Report that provides deeper analysis of the company's growth prospects.
The companies may consider expanding the clinical development to additional medical and aesthetic indications in the future based on the outcomes of this trial. Investors tracking this development can find detailed financial analysis, including growth metrics and valuation models, through InvestingPro's extensive coverage of over 1,400 US stocks.
The information in this article is based on a press release statement from Dermata Therapeutics and Revance Therapeutics.
In other recent news, Revance Therapeutics has been the subject of several significant developments. The biopharmaceutical company is in talks with Teoxane about a potential superior takeover proposal, offering a 16% premium over the price set in Revance's amended agreement with Crown Laboratories. The proposed acquisition is subject to due diligence by Teoxane and its lenders.
Simultaneously, Revance is also in the midst of a merger with Crown Laboratories, a global skincare company. However, this proposed merger has led to downgrades of Revance's stock rating by William Blair and Stifel, while Mizuho (NYSE:MFG) maintains a Neutral rating.
Revance has also 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. Furthermore, Revance's product, DaxibotulinumtoxinA for Injection, has received approval from China's National Medical (TASE:PMCN) Products Administration, marking a significant expansion into the Chinese market.
Lastly, the company has repeatedly delayed the commencement of a tender offer for its outstanding common stock shares due to ongoing discussions with Crown Laboratories and Reba Merger Sub. These are the recent developments concerning Revance Therapeutics.
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