Revance Releases First Quarter 2017 Results
- Completed Enrollment in SAKURA 1 & 2 Phase 3 Pivotal Trials of RT002 for Glabellar Lines -
Revance Therapeutics, Inc. (NASDAQ:RVNC), a biotechnology company developing botulinum toxin products for use in treating
aesthetic and therapeutic conditions, today announced results for the first quarter ended March 31, 2017.
Recent Highlights and Upcoming Milestones for DaxibotulinumtoxinA for Injection (RT002)
- Completed enrollment for the SAKURA 1 & 2 Phase 3 pivotal trials of RT002 injectable for the
treatment of glabellar (frown) lines. The SAKURA program is comprised of the two pivotal trials, plus a long-term safety trial
that continues to enroll subjects. Revance plans to report topline results from the SAKURA 1 & 2 pivotal trials in the fourth
quarter of 2017.
- Presented safety, efficacy and duration-of-effect results from Phase 2 trials for RT002 injectable
for the treatment of glabellar lines and cervical dystonia at TOXINS 2017, the International Neurotoxin Association
Conference.
- Presented BELMONT Phase 2 clinical data of RT002 injectable for the treatment of glabellar (frown)
lines at the 2017 American Academy of Dermatology Annual Meeting.
- Updated Phase 2 program for RT002 injectable in the management of plantar fasciitis by expanding to a
multi-center study with protocol updates. The company plans to report topline results in the fourth quarter of 2017.
- Expects to report 24-week results from all three cohorts of the Phase 2 open-label, sequential,
dose-escalating study of RT002 for the treatment of cervical dystonia in the second quarter of 2017.
“Studies conducted to date with RT002 injectable involving both large and small muscles indicate not only a strong safety
profile, but also that this next-generation neuromodulator can potentially deliver high response rates, long duration of effect and
high patient satisfaction. These clinical results are like no other in the neuromodulator space,” said Dan Browne, President and
Chief Executive Officer at Revance. “We expect to report results for our Phase 3 pivotal trials for glabellar lines, the 24-week
Phase 2 results for cervical dystonia and topline Phase 2 results for our new indication, plantar fasciitis, all within the next
seven months.”
Summary Financial Results
Cash and investments as of March 31, 2017 were $188.6 million.
Research and development expenses for the three months ended March 31, 2017 were $19.4 million compared to $12.4 million
for the same period in 2016. The increase in research and development expenses is primarily due our SAKURA 1 and 2 Phase 3 pivotal
trials of RT002 injectable.
General and administrative expenses for the three months ended March 31, 2017 were $7.8 million compared to $7.5 million
for the same period in 2016. The increase in general and administrative expenses is primarily due to increased costs related to
personnel, offset by a decrease in marketing expenses.
Total operating expenses for the three months ended March 31, 2017 were $27.2 million compared to $19.8 million for the
same period in 2016. Stock-based compensation for the three months ended March 31, 2017 was $3.2 million. When excluding
depreciation and stock-based compensation, total operating expenses for the three months ended March 31, 2017 were $23.7
million.
Net loss for the three months ended March 31, 2017 was $27.2 million compared to $19.9 million for the same period in
2016.
2017 Financial Outlook
Revance reaffirmed 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, May 9, 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: 3251601; 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 May 10, 2017. To
access the replay, dial (855) 859-2056 or (404) 537-3406 and reference Conference ID: 3251601. 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 to 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 annual report on Form 10-K filed February 28, 2017. 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.
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REVANCE THERAPEUTICS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
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|
March 31, |
|
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December 31, |
|
|
|
2017 |
|
|
2016 |
| ASSETS |
| CURRENT ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
38,235 |
|
|
|
$ |
63,502 |
|
| Short-term investments |
|
|
150,404 |
|
|
|
122,026 |
|
| Restricted cash, current portion |
|
|
502 |
|
|
|
— |
|
| Prepaid expenses and other current assets |
|
|
8,312 |
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|
7,167 |
|
| Total current assets |
|
|
197,453 |
|
|
|
192,695 |
|
| Property and equipment, net |
|
|
11,205 |
|
|
|
10,585 |
|
| Restricted cash, net of current portion |
|
|
580 |
|
|
|
580 |
|
| Other non-current assets |
|
|
216 |
|
|
|
500 |
|
| TOTAL ASSETS |
|
|
$ |
209,454 |
|
|
|
$ |
204,360 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| CURRENT LIABILITIES |
|
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| Accounts payable |
|
|
$ |
5,573 |
|
|
|
$ |
3,754 |
|
| Accruals and other current liabilities |
|
|
14,967 |
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|
12,418 |
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| Financing obligations, current portion |
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3,502 |
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|
3,475 |
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| Total current liabilities |
|
|
24,042 |
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|
19,647 |
|
| Financing obligations, net of current portion |
|
|
983 |
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|
1,872 |
|
| Derivative liability associated with Medicis settlement |
|
|
2,082 |
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|
2,022 |
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| Deferred rent |
|
|
3,576 |
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|
|
3,648 |
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| Other non-current liabilities |
|
|
100 |
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|
|
100 |
|
| TOTAL LIABILITIES |
|
|
30,783 |
|
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|
27,289 |
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| Commitments and Contingencies |
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| STOCKHOLDERS’ EQUITY |
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| Common stock, par value $0.001 per share — 95,000,000 shares authorized both as of
March 31, 2017 and December 31, 2016; 30,129,240 and 28,648,954 shares issued and outstanding as of March 31, 2017 and December
31, 2016, respectively |
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|
30 |
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|
29 |
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| Additional paid-in capital |
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|
627,475 |
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|
598,630 |
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| Accumulated other comprehensive loss |
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(98 |
) |
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|
(45 |
) |
| Accumulated deficit |
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(448,736 |
) |
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|
(421,543 |
) |
| TOTAL STOCKHOLDERS’ EQUITY |
|
|
178,671 |
|
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|
177,071 |
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| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
$ |
209,454 |
|
|
|
$ |
204,360 |
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REVANCE THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
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Three Months Ended
March 31, |
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2017 |
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2016 |
| Revenue |
|
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$ |
75 |
|
|
|
$ |
75 |
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| Operating expenses: |
|
|
|
|
|
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| Research and development |
|
|
19,409 |
|
|
|
12,364 |
|
| General and administrative |
|
|
7,754 |
|
|
|
7,455 |
|
| Total operating expenses |
|
|
27,163 |
|
|
|
19,819 |
|
| Loss from operations |
|
|
(27,088 |
) |
|
|
(19,744 |
) |
| Interest income |
|
|
311 |
|
|
|
310 |
|
| Interest expense |
|
|
(193 |
) |
|
|
(315 |
) |
| Change in fair value of derivative liability associated with Medicis settlement |
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|
(60 |
) |
|
|
(14 |
) |
| Other expense, net |
|
|
(126 |
) |
|
|
(125 |
) |
| Net loss |
|
|
(27,156 |
) |
|
|
(19,888 |
) |
| Unrealized gain (loss) on available for sale securities |
|
|
(52 |
) |
|
|
226 |
|
| Comprehensive loss |
|
|
$ |
(27,208 |
) |
|
|
$ |
(19,662 |
) |
| Net loss attributable to common stockholders: |
|
|
|
|
|
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| Basic and Diluted |
|
|
$ |
(27,156 |
) |
|
|
$ |
(19,888 |
) |
| Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
| Basic and Diluted |
|
|
$ |
(0.94 |
) |
|
|
$ |
(0.71 |
) |
| Weighted-average number of shares used in computing net loss per share attributable
to common stockholders: |
|
|
|
|
|
|
| Basic and Diluted |
|
|
28,808,195 |
|
|
|
28,005,611 |
|
|
|
|
|
|
|
|
|
|
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Revance Therapeutics, Inc.
2017 Financial Results
(Unaudited)
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
(In thousands)
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Three Months Ended
March 31, 2017 |
| Operating expense: |
|
|
|
| GAAP operating expense |
|
|
$ |
27,163 |
|
| Adjustments: |
|
|
|
| Stock-based compensation |
|
|
(3,155 |
) |
| Depreciation |
|
|
(357 |
) |
| Non-GAAP operating expense |
|
|
$ |
23,651 |
|
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Revance Therapeutics, Inc.
2017 Financial Guidance
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
(In thousands)
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Fiscal Year |
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|
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2017 |
|
|
|
Low |
|
|
High |
| Operating expense: |
|
|
|
|
|
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| GAAP operating expense |
|
|
$ |
108,000 |
|
|
|
$ |
119,000 |
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| Adjustments: |
|
|
|
|
|
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| Stock-based compensation |
|
|
(13,000 |
) |
|
|
(15,000 |
) |
| Depreciation |
|
|
(1,000 |
) |
|
|
(2,000 |
) |
| Non-GAAP operating expense |
|
|
$ |
94,000 |
|
|
|
$ |
102,000 |
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Reconciliation of GAAP R&D Expense to Non-GAAP R&D Expense
(In thousands)
|
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Fiscal Year |
|
|
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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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Investors:
Revance Therapeutics, Inc.:
Jeanie Herbert, 714-325-3584
jherbert@revance.com
or
Burns McClellan, Inc.:
Ami Bavishi, 212-213-0006
abavishi@burnsmc.com
or
Trade Media, Inc.:
Nadine Tosk, 504-453-8344
nadinepr@gmail.com
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