Exhibit 99.1
Revance Releases Third Quarter 2016 Results
NEWARK, Calif., November 3, 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 third quarter ended September 30, 2016.
Recent Highlights and Upcoming Milestones for DaxibotulinumtoxinA for Injection (RT002)
| |
| • | Initiated the Phase 3 program for RT002 to treat glabellar (frown) lines and expects to dose the first patient this quarter. Revance plans to report topline results in the fourth quarter of 2017. |
| |
| • | Announced that the Data Safety Monitoring Board has reviewed data from the second cohort of the Phase 2 open-label study in cervical dystonia. Commenced enrollment in the third and final cohort of the study. Revance expects to report interim safety, efficacy and duration results for cohorts 1 and 2 later this quarter. |
| |
| • | Initiated Phase 2 trial of RT002 to treat plantar fasciitis. The placebo-controlled study will evaluate the safety and efficacy of a single administration of RT002 in reducing the signs and symptoms of plantar fasciitis, a common cause of heel pain. Led by L. Andrew Koman, MD, Professor and Chair of the Department of Orthopaedic Surgery and Executive Director Musculoskeletal Service Line, Wake Forest School of Medicine, this trial advances a whole new treatment area for botulinum toxin to address pain and muscle tightness. Revance expects to report results in 2017. |
“With three active programs for RT002 injectable underway to demonstrate the power of our differentiated neurotoxin, we expect to deliver the first uniquely new neuromodulator in nearly 30 years,” said Dan Browne, President and Chief Executive Officer at Revance. “Following the filing and opening of our IND application submission to treat frown lines, we initiated investigator training and are on track to start patient dosing for the Phase 3 program this quarter. In addition, we are making significant progress in the Phase 2 cervical dystonia trial. The third cohort is nearly fully enrolled and we expect to report interim data for the first two cohorts later this quarter. Finally, as we announced this morning, we are excited to pursue plantar fasciitis as a new indication, where Revance has the opportunity to deliver the first neurotoxin therapy approved to treat this painful condition. In the United States alone, more than two million patients undergo treatment annually and we believe the market could grow significantly larger if patients had a compelling neurotoxin treatment option.”
Summary Financial Results
Research and development expenses for the three months ended September 30, 2016 were $10.3 million compared to $13 million for the same period in 2015. The decrease in research and development expenses is primarily attributable to a reduction in clinical trial activities for RT001 topical, offset by an increase in clinical trial activities for RT002 injectable and manufacturing activities. Research and development expenses for the nine months ended September 30, 2016 were $37.9 million compared to $32.6 million for the same period in 2015. The increase in research and development expenses is primarily attributable to personnel costs, manufacturing activities, and the acquisition of botulinum toxin-related patents and patent applications from Botulinum Toxin Research Associates, Inc.
General and administrative expenses for the three and nine months ended September 30, 2016 were $7.5 million and $22 million compared to $5.8 million and $18.2 million for the same periods in 2015, respectively. The increase in general and administrative expenses is primarily attributable to personnel costs, legal matters, and marketing activities.
Total operating expenses for the three and nine months ended September 30, 2016 were $17.8 million and $61.8 million compared to $18.8 million and $50.8 million for the same periods in 2015, respectively. Stock-based compensation for the three and nine months ended September 30, 2016 was $2.8 million and $9 million, respectively. When excluding depreciation and stock-based compensation, total operating expenses for the three and nine months ended September 30, 2016 were $14.7 million and $51.7 million.
Net loss for the three and nine months ended September 30, 2016 was $18 million and $62.5 million compared to $19.2 million and $51.4 million for the same periods in 2015, respectively.
Cash and investments as of September 30, 2016 were $201.3 million.
2016 Financial Outlook
Revance updated its 2016 full-year guidance last provided on August 4, 2016. The company now expects its cash burn for 2016 to be in the range of $80 to $90 million. Revance expects its 2016 GAAP operating expense to now be in the range of $84 to $96 million, which when excluding depreciation of $2 to $3 million and estimated stock-based compensation of $12 to $13 million, results in projected 2016 non-GAAP operating expense of $70 to $80 million. Revance also now anticipates 2016 GAAP research and development expense to be in the range of $55 to $63 million, which when excluding depreciation of $2 to $3 million and estimated stock-based compensation of $6 to $7 million, results in projected 2016 non-GAAP research and development expense of $47 to $53 million.
Conference Call
Individuals interested in listening to the conference call today, November 3, 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: 96279951; 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 5:00pm PT/8:00pm ET on November 4, 2016. To access the replay, dial (855) 859-2056 or (404) 537-3406 and reference Conference ID: 96279951. 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 and neurology. Revance's science is based upon a proprietary TransMTS® 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 and has the potential to be the first long-acting neurotoxin. The company holds worldwide rights for all indications of RT002 injectable and RT001 topical and the pharmaceutical uses of the TransMTS technology platform. More information on Revance may be found at www.revance.com.
"Revance Therapeutics", TransMTS®, "Remarkable Science Changes Everything", 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' 2016 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 August 5, 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.
###
Contacts
Investors:
Revance Therapeutics
Jeanie Herbert
(714) 325-3584
jherbert@revance.com
Burns McClellan
Ami Bavishi
(212) 213-0006
abavishi@burnsmc.com
Trade Media:
Nadine Tosk
(504) 453-8344
nadinepr@gmail.com
REVANCE THERAPEUTICS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
|
| | | | | | | |
| | September 30, | | December 31, |
| | 2016 | | 2015 |
| ASSETS |
| CURRENT ASSETS | | | |
| Cash and cash equivalents | $ | 130,481 |
| | $ | 201,615 |
|
| Short-term investments | 70,770 |
| | 50,688 |
|
| Restricted cash, current portion | — |
| | 35 |
|
| Prepaid expenses and other current assets | 7,428 |
| | 1,625 |
|
| Total current assets | 208,679 |
| | 253,963 |
|
| Property and equipment, net | 17,385 |
| | 19,708 |
|
| Long-term investments | — |
| | 1,751 |
|
| Restricted cash, net of current portion | 580 |
| | 400 |
|
| Other non-current assets | 213 |
| | — |
|
| TOTAL ASSETS | $ | 226,857 |
| | $ | 275,822 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| CURRENT LIABILITIES | | | |
| Accounts payable | $ | 2,871 |
| | $ | 2,657 |
|
| Accruals and other current liabilities | 11,306 |
| | 6,245 |
|
| Financing obligations, current portion | 3,339 |
| | 3,135 |
|
| Total current liabilities | 17,516 |
| | 12,037 |
|
| Financing obligations, net of current portion | 2,836 |
| | 5,346 |
|
| Derivative liability associated with Medicis settlement | 2,009 |
| | 1,414 |
|
| Deferred rent | 3,681 |
| | 3,773 |
|
| Other non-current liabilities | 100 |
| | — |
|
| TOTAL LIABILITIES | 26,142 |
| | 22,570 |
|
| Commitments and Contingencies | | | |
| STOCKHOLDERS’ EQUITY | | | |
| Preferred stock, par value $0.001 per share — 5,000,000 shares authorized both as of September 30, 2016 and December 31, 2015; no shares issued and outstanding both as of September 30, 2016 and December 31, 2015. | — |
| | — |
|
| Common stock, par value $0.001 per share — 95,000,000 shares authorized both as of September 30, 2016 and December 31, 2015; 28,515,161 and 28,288,464 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 29 |
| | 28 |
|
| Additional paid-in capital | 595,411 |
| | 585,537 |
|
| Accumulated other comprehensive income (loss) | 16 |
| | (40 | ) |
| Accumulated deficit | (394,741 | ) | | (332,273 | ) |
| TOTAL STOCKHOLDERS’ EQUITY | 200,715 |
| | 253,252 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 226,857 |
| | $ | 275,822 |
|
REVANCE THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Revenue | $ | 75 |
| | $ | 75 |
| | $ | 225 |
| | $ | 225 |
|
| Operating expenses: |
| |
| |
| |
|
| Research and development | 10,296 |
| | 13,016 |
| | 37,851 |
| | 32,573 |
|
| General and administrative | 7,502 |
| | 5,827 |
| | 21,975 |
| | 18,183 |
|
| Loss on impairment | — |
| | — |
| | 1,949 |
| | — |
|
| Total operating expenses | 17,798 |
| | 18,843 |
| | 61,775 |
| | 50,756 |
|
| Loss from operations | (17,723 | ) | | (18,768 | ) | | (61,550 | ) | | (50,531 | ) |
| Interest income | 306 |
| | 68 |
| | 940 |
| | 144 |
|
| Interest expense | (256 | ) | | (390 | ) | | (857 | ) | | (834 | ) |
| Change in fair value of derivative liability associated with Medicis settlement | (167 | ) | | 13 |
| | (595 | ) | | 60 |
|
| Other expense, net | (138 | ) | | (98 | ) | | (406 | ) | | (221 | ) |
| Net loss | (17,978 | ) | | (19,175 | ) | | (62,468 | ) | | (51,382 | ) |
| Unrealized gain/(loss) on available for sale securities | (132 | ) | | 22 |
| | 56 |
| | 10 |
|
| Comprehensive loss | $ | (18,110 | ) | | $ | (19,153 | ) | | $ | (62,412 | ) | | $ | (51,372 | ) |
| Net loss attributable to common stockholders: |
| |
| |
| |
|
| Basic | $ | (17,978 | ) | | $ | (19,175 | ) | | $ | (62,468 | ) | | $ | (51,382 | ) |
| Diluted | $ | (17,978 | ) | | $ | (19,175 | ) | | $ | (62,468 | ) | | $ | (51,382 | ) |
| Net loss per share attributable to common stockholders: |
| |
| |
| |
|
| Basic | $ | (0.64 | ) | | $ | (0.81 | ) | | $ | (2.22 | ) | | $ | (2.17 | ) |
| Diluted | $ | (0.64 | ) | | $ | (0.81 | ) | | $ | (2.22 | ) | | $ | (2.17 | ) |
| Weighted-average number of shares used in computing net loss per share attributable to common stockholders: |
| |
| |
| |
|
| Basic | 28,160,458 |
| | 23,755,199 |
| | 28,085,541 |
| | 23,625,869 |
|
| Diluted | 28,160,458 |
| | 23,755,199 |
| | 28,085,541 |
| | 23,625,869 |
|
Revance Therapeutics, Inc.
2016 Financial Results
(Unaudited)
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
(In thousands)
|
| | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| Operating expense: | | | |
| GAAP operating expense | $ | 17,798 |
| | $ | 61,775 |
|
| Adjustments: | | | |
| Stock-based compensation | (2,755 | ) | | (8,984 | ) |
| Depreciation | (369 | ) | | (1,068 | ) |
| Non-GAAP operating expense | $ | 14,674 |
| | $ | 51,723 |
|
Revance Therapeutics, Inc.
2016 Financial Guidance
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
(In thousands)
|
| | | | | | | |
| | Fiscal Year |
| | 2016 |
| | Low | | High |
| Operating expense: | | | |
| GAAP operating expense | $ | 84,000 |
| | $ | 96,000 |
|
| Adjustments: | | | |
| Stock-based compensation | (12,000 | ) | | (13,000 | ) |
| Depreciation | (2,000 | ) | | (3,000 | ) |
| Non-GAAP operating expense | $ | 70,000 |
| | $ | 80,000 |
|
Reconciliation of GAAP R&D Expense to Non-GAAP R&D Expense
(In thousands)
|
| | | | | | | |
| | Fiscal Year |
| | 2016 |
| | Low | | High |
| R&D expense: | | | |
| GAAP R&D expense | $ | 55,000 |
| | $ | 63,000 |
|
| Adjustments: | | | |
| Stock-based compensation | (6,000 | ) | | (7,000 | ) |
| Depreciation | (2,000 | ) | | (3,000 | ) |
| Non-GAAP R&D expense | $ | 47,000 |
| | $ | 53,000 |
|
