- Cash and investments of $185.5 million as of
December 31, 2016 -
Revance Therapeutics, Inc. (NASDAQ:RVNC), a biotechnology
company developing botulinum toxin products for use in aesthetic
and therapeutic indications, today announced results for the fourth
quarter and full year ended December 31, 2016.
Recent Highlights and Upcoming Milestones
- Presented clinical data for RT002
injectable at TOXINS 2017, the third International Neurotoxin
Association Conference in Madrid, Spain. The podium presentations
and poster abstracts highlighted the safety, efficacy and
duration-of-effect results for RT002 injectable in the treatment of
glabellar lines and cervical dystonia.
- Presented safety, efficacy, and
duration of effect data from the BELMONT Phase 2 study of RT002
injectable at the 19th annual IMCAS (International Master Course on
Aging Skin) World Congress.
- Clinical Development for
DaxibotulinumtoxinA for Injection (RT002)
- Announced subject dosing in the Phase 3
program of RT002 for the treatment of glabellar (frown) lines,
comprised of two pivotal trials and a long-term safety trial.
Revance plans to report topline results from both pivotal trials in
the fourth quarter of 2017.
- Reported positive interim results from
the Phase 2 open-label, sequential, dose-escalating study of RT002
for the treatment of cervical dystonia. RT002 injectable appeared
to be generally safe and well-tolerated, displayed clinically
significant impact on cervical dystonia signs and symptoms, and
subjects in the first completed cohort (n=12) achieved median
duration of effect of at least 24 weeks. Revance expects to report
24-week Phase 2 results in the second quarter of 2017.
- Initiated Phase 2 trial to evaluate the
safety and efficacy of RT002 in reducing the signs and symptoms of
plantar fasciitis. The trial is actively enrolling and Revance
expects to report results in the second half of 2017.
“The fourth quarter was highly productive for Revance. We
announced compelling subject response rates and duration of effect
interim data reported from our Phase 2 study for RT002 in cervical
dystonia, plus the initiation of patient enrollment for two
additional clinical programs evaluating RT002 injectable,” said Dan
Browne, President and Chief Executive Officer at Revance. “We are
actively enrolling patients in clinical trials and expect a
news-rich 2017. Our clinical programs are designed to further
demonstrate that RT002 injectable has potential to be the first
neuromodulator to provide long duration and increased response
rates. Furthermore, we believe RT002 injectable has the potential
to provide patients with a significant improvement in quality of
life, particularly in treating debilitating conditions such as
cervical dystonia and plantar fasciitis.”
Summary Financial Results
Research and development expenses for the fourth quarter
and full year ended December 31, 2016 were $12.5 million and
$50.4 million, respectively, compared to $15.0 million and $47.5
million for the same periods in 2015, respectively. The decrease in
research and development expenses for the quarter is primarily
attributable to a decrease in preclinical trial activities and
outside services offset by increased personnel costs. The increase
in research and development expenses for the annual period is
primarily attributed to personnel costs, manufacturing activities,
preclinical and clinical studies for RT002 injectable, and the
acquisition of botulinum toxin-related patents and patent
applications. These increases were offset primarily by a decrease
in clinical trial activities for RT001 topical.
General and administrative expenses for the fourth
quarter and full year ended December 31, 2016 were $7.1
million and $29.1 million, respectively, compared to $6.9 million
and $25.1 million for the same periods in 2015, respectively. The
increase in general and administrative expenses is primarily
attributable to increased costs related to personnel, marketing
activities, and legal matters, offset by a decrease in outside
services.
Total operating expenses for the fourth quarter and full
year ended December 31, 2016 were $26.7 million and $88.5
million, respectively, compared to $21.9 million and $72.6 million
for the same periods in 2015, respectively. Operating expenses for
the fourth quarter and full year ended December 31, 2016 include
non-cash impairment charges related to RT001 topical manufacturing
equipment of $7.1 million and $9.1 million, respectively.
Stock-based compensation for the fourth quarter and full year ended
December 31, 2016 was $3.0 million and $12.0 million,
respectively. When excluding depreciation and stock-based
compensation, total operating expenses for the fourth quarter and
full year ended December 31, 2016 were $23.4 million and $75.1
million, respectively.
Net loss for the fourth quarter and full year ended
December 31, 2016 was $26.8 million and $89.3 million,
respectively, compared to $22.1 million and $73.5 million for the
same periods in 2015, respectively.
Cash and investments as of December 31, 2016 were
$185.5 million.
2017 Financial Outlook
Revance reiterates its financial guidance provided in January
2017. Revance expects cash burn for 2017 to be in the range
of $102 to $112 million. Revance expects 2017 GAAP
operating expense to be in the range of $108 to $119
million, which when excluding depreciation
of $1 to $2 million and estimated stock-based
compensation of $13 to $15 million, results in
projected 2017 non-GAAP operating expense
of $94 to $102 million. With three clinical programs
underway, Revance anticipates 2017 GAAP research and development
expense to be in the range of $75 to $83 million,
which when excluding depreciation of $1 to $2
million and estimated stock-based compensation
of $5 to $6 million, results in projected 2017
non-GAAP research and development expense
of $69 to $75 million.
Conference Call
Individuals interested in listening to the conference call
today, February 27, at 1:30pm PT/4:30pm ET may do so by dialing
(855) 453-3827 for domestic callers, or (484) 756-4301 for
international callers and reference conference ID: 57631373; or
from the webcast link in the investor relations section of the
Company's website at: http://investors.revance.com/index.cfm.
A replay of the call will be available beginning today at 4:30pm
PT/7:30pm ET through 4:30pm PT/7:30pm ET on February 28. To access
the replay, dial (855) 859-2056 or (404) 537-3406 and reference
conference ID: 57631373. The webcast will be available in the
investor relations section on the Company's website for 30 days
following the completion of the call.
About Revance Therapeutics, Inc.
Revance, a Silicon Valley-based biotechnology company, is
committed to the advancement of remarkable science. The company is
developing a portfolio of products for aesthetic medicine and
underserved therapeutic specialties, including dermatology,
orthopedics and neurology. Revance’s science is based upon a
proprietary peptide technology, which when combined with active
drug molecules, may help address current unmet needs. Revance’s
initial focus is on developing daxibotulinumtoxinA, the company’s
highly purified botulinum toxin, for a broad spectrum of aesthetic
and therapeutic indications, including facial wrinkles and muscle
movement disorders.
The company’s lead drug candidate, DaxibotulinumtoxinA for
Injection (RT002), is currently in development for the treatment of
glabellar lines, cervical dystonia and plantar fasciitis with the
potential to be the first long-acting neuromodulator. The company
holds worldwide rights for all indications of RT002 injectable and
RT001 topical and the pharmaceutical uses of its proprietary
peptide technology platform. More information on Revance may be
found at www.revance.com.
“Revance Therapeutics” and the Revance logo are registered
trademarks of Revance Therapeutics, Inc.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements related to Revance Therapeutics' 2017
Financial Outlook and other financial performance, the process and
timing of, and ability to complete, current and anticipated future
clinical development of our investigational drug product
candidates, including but not limited to initiation and design of
clinical studies for current and future indications, related
results and reporting of such results; statements about our
business strategy, timeline and other goals and market for our
anticipated products, plans and prospects; and statements about our
ability to obtain regulatory approval; and potential benefits of
our drug product candidates and our technologies.
Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from our expectations. These risks and uncertainties include, but
are not limited to: the outcome, cost, and timing of our product
development activities and clinical trials; the uncertain clinical
development process, including the risk that clinical trials may
not have an effective design or generate positive results; our
ability to obtain and maintain regulatory approval of our drug
product candidates; our ability to obtain funding for our
operations; our plans to research, develop, and commercialize our
drug product candidates; our ability to achieve market acceptance
of our drug product candidates; unanticipated costs or delays in
research, development, and commercialization efforts; the
applicability of clinical study results to actual outcomes; the
size and growth potential of the markets for our drug product
candidates; our ability to successfully commercialize our drug
product candidates and the timing of commercialization activities;
the rate and degree of market acceptance of our drug product
candidates; our ability to develop sales and marketing
capabilities; the accuracy of our estimates regarding expenses,
future revenues, capital requirements and needs for financing; our
ability to continue obtaining and maintaining intellectual property
protection for our drug product candidates; and other risks.
Detailed information regarding factors that may cause actual
results to differ materially from the results expressed or implied
by statements in this press release may be found in Revance's
periodic filings with the Securities and Exchange
Commission (the "SEC"), including factors described in the
section entitled "Risk Factors" of our quarterly report on Form
10-Q filed November 4, 2016. These forward-looking statements
speak only as of the date hereof. Revance disclaims any obligation
to update these forward-looking statements.
Use of Non-GAAP Financial Measures
Revance has presented certain non-GAAP financial measures in
this release. This release and the reconciliation tables included
herein include total non-GAAP operating expense and non-GAAP
R&D expense, both of which exclude depreciation and stock-based
compensation. Revance excludes depreciation costs and stock-based
compensation expense because management believes the exclusion of
these items is helpful to investors to evaluate Revance's recurring
operational performance. Revance management uses these non-GAAP
financial measures to monitor and evaluate its operating results
and trends on an on-going basis, and internally for operating,
budgeting and financial planning purposes. The non-GAAP financial
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute for
or superior to GAAP results.
REVANCE THERAPEUTICS, INC.
Consolidated Balance Sheets
(In thousands, except share and per
share amounts)
As of December 31, 2016
2015 ASSETS CURRENT ASSETS Cash and cash equivalents
$ 63,502 $ 201,615 Short-term investments 122,026 50,688 Restricted
cash, current portion — 35 Prepaid expenses and other current
assets 7,167 1,625 Total current assets 192,695
253,963 Property and equipment, net 10,585 19,708 Long-term
investments — 1,751 Restricted cash, net of current portion 580 400
Other non-current assets 500 — TOTAL ASSETS $ 204,360
$ 275,822
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES Accounts payable $ 3,754 $ 2,657 Accruals and
other current liabilities 12,418 6,245 Financing obligations,
current portion 3,475 3,135 Total current liabilities
19,647 12,037 Financing obligations, net of current
portion 1,872 5,346 Derivative liabilities associated with Medicis
settlement 2,022 1,414 Deferred rent 3,648 3,773 Other non-current
liabilities 100 — TOTAL LIABILITIES 27,289
22,570 Commitments and Contingencies STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share — 95,000,000 shares
authorized both as of December 31, 2016 and 2015; 28,648,954 and
28,288,464 shares issued and outstanding as of December 31, 2016
and 2015, respectively 29 28 Additional paid-in capital 598,630
585,537 Accumulated other comprehensive loss (45 ) (40 )
Accumulated deficit (421,543 ) (332,273 ) TOTAL STOCKHOLDERS’
EQUITY 177,071 253,252 TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $ 204,360 $ 275,822
REVANCE THERAPEUTICS, INC.
Consolidated Statements of Operations
and Comprehensive Loss
(In thousands, except share and per
share amounts)
Quarter Ended
December 31,
Year Ended
December 31,
2016 2015 2016
2015 Revenue $ 75 $ 75 $ 300 $ 300 Operating expenses:
Research and development 12,530 14,956 50,381 47,529 General and
administrative 7,100 6,905 29,075 25,088 Loss on impairment 7,111
— 9,059 — Total operating expenses
26,741 21,861 88,515 72,617 Loss from
operations (26,666 ) (21,786 ) (88,215 ) (72,317 ) Interest income
230 87 1,170 231 Interest expense (225 ) (356 ) (1,082 ) (1,190 )
Changes in fair value of derivative liabilities associated with the
Medicis settlement (13 ) 67 (608 ) 127 Other expense, net (128 )
(106 ) (535 ) (327 ) Net loss (26,802 ) (22,094 ) (89,270 ) (73,476
) Unrealized loss on available for sale securities (61 ) (50 ) (5 )
(40 ) Comprehensive loss $ (26,863 ) $ (22,144 ) $ (89,275 ) $
(73,516 ) Net loss attributable to common stockholders: Basic and
Diluted $ (26,802 ) $ (22,094 ) $ (89,270 ) $ (73,476 ) Net loss
per share attributable to common stockholders: Basic and Diluted $
(0.95 ) $ (0.83 ) $ (3.18 ) $ (3.02 ) Weighted-average number of
shares used in computing net loss per share attributable to common
stockholders: Basic and Diluted 28,201,880 26,460,955
28,114,784 24,340,466
Revance Therapeutics, Inc.
2016 Financial Results
Reconciliation of GAAP Operating
Expense to Non-GAAP Operating Expense
(In thousands)
Quarter Ended Year Ended December 31,
2016 December 31, 2016 Operating expense: GAAP
operating expense $ 26,741 $ 88,515
Adjustments: Stock-based compensation (2,969 ) (11,953 )
Depreciation (377 ) (1,445 )
Non-GAAP operating expense $
23,395 $ 75,117
Revance Therapeutics, Inc.
2017 Financial Guidance
Reconciliation of GAAP Operating
Expense to Non-GAAP Operating Expense
(In thousands)
Fiscal Year 2017 Low
High Operating expense: GAAP operating expense $
108,000 $ 119,000
Adjustments: Stock-based compensation
(13,000 ) (15,000 ) Depreciation (1,000 ) (2,000 )
Non-GAAP
operating expense $ 94,000 $ 102,000
Reconciliation of GAAP R&D Expense
to Non-GAAP R&D Expense
(In thousands)
Fiscal Year 2017 Low
High R&D expense: GAAP R&D expense $ 75,000 $
83,000
Adjustments: Stock-based compensation (5,000 ) (6,000
) Depreciation (1,000 ) (2,000 )
Non-GAAP R&D expense $
69,000 $ 75,000
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version on businesswire.com: http://www.businesswire.com/news/home/20170227006499/en/
Investors:Revance TherapeuticsJeanie Herbert,
714-325-3584jherbert@revance.comorBurns McClellanAmi Bavishi,
212-213-0006abavishi@burnsmc.comorTrade Media:Nadine Tosk,
504-453-8344nadinepr@gmail.com
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