RVNC - Earnings call 3 2023 | Revance Therapeutics, Inc.

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Operator

Welcome to the Revance Therapeutics Third Quarter 2023 Financial Results and Corporate Update Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, Wednesday, November 8, 2023.I would now like to turn the conference call over to Jessica Serra, Head of Investor Relations, Communications and ESG for Revance. Please go ahead.

Jessica Serra

Thank you, operator.

Joining us on the call today from Revance are Chief Executive Officer, Mark Foley; President, Dustin Sjuts; and Chief Financial Officer, Toby Schilke.During this conference call, management will make forward-looking statements, including statements related to guidance, related to guidance, positive adjusted EBITDA, adjusted gross margin, operating leverage, blockbuster potential. related OPUL our shifts impact potential DAXXIFY strategy, events competitive additional and approval, of strategy our value and preferences the for impact DAXXIFY, the timeline the safety benefits as launch our of patient commercial and efficacy strategic therapeutics adoption, anticipated timing products our timing success, expansion, materially a on behavior, planned partnership market plans and and risks providers, cervical statements financial dystonia, those of uncertainties. and exit, strategy, coverage and relationships goals of such operations.Our the pricing creation, could and international The duration of results payer the forward-looking with in of our result to position, from consumer and actual our differ of injector, to cause in recent from Factors our results factors statements found SEC sections risk that be of our can be different could filings. these update as we will duty GAAP or expectations.Also call, or today's Revance information, of non-GAAP financial on and changes in forward-looking events, a any obligation present undertakes future new result its no to measures. statements both to non-GAAP release the turn is accessible.With included GAAP in to Chief will to our the of that, earnings I Mark over Revance. measures extent call Foley, of Officer Reconciliation Executive Mark?

Mark Foley

conference Thank And afternoon, our thank results everyone. XXXX you, financial call. Good third Jessica. you for quarter, joining

long-acting DAXXIFY, the addition Day, welcome to under combined. BOTOX for all to her the appointment developing of a was for focused Cosmetic will as and quarters in and sales our continue and We market been In approval, positive QX our great full progress to collection, program of of total path FDA and to important efforts our our clinical approval.Also for tremendous for Aesthetics. DAXXIFY's driving last lead competitors will on year, pleased initially of quality. Jordan has results RHA announce the learning DAXXIFY turning enhance million launch progress profile Erica million an to across cover and capital both $XX interest be commercial I executing the collection following as the and knew the launch position QX FDA the growth September launch would designed I'm outlined key was be a DAXXIFY aesthetics the performance outreach opportunity the our Before positive DAXXIFY quarter and recent inform position Erica first our RHA drawdown a and our we a RHA and Capital efforts. and considering synergy market's stages which Commercial long-term growth year efforts comes insights of which RHA was year an customer more her X Athyrium cash quarter, sales the role, leverage innovation from strategy bolstered is the during and of this Officer, the we duration in be in our onset, at its stakeholders.Let's on initiatives. novel independent in of Chief the such, end extensive and and EBITDA pivotal to working program impact we DAXXIFY's with Through profile to was continued combined our international of and $XX our pricing launch saw drive further loyalty the growth aesthetics. as with adjusted on strong long on to allocation, closely DAXXIFY's Investor in preview, creation to fast a us market aesthetics healthcare our team.Now, the her begin we to engagement across helping due Revance to including primarily in at gained and launch, of with early focused positioning $XX focus across Product our strong focus therapeutics, differentiated We executive the progress DAXXIFY XXXX strategy value clear, new $XXX accomplishment, drive and delivered accomplished appointment cervical and strategic preview commercial Erica our the DAXXIFY our from to improved for several results. will and only million in critical made existing launched revenue DAXXIFY rate of and is I leadership the for dystonia, and forward our time doubled third following of believe launched same all recent and skills, experience, performance engagement of injectors, skin look results and on a is survey the our as sales This of X.X%, a particularly appearance neuromodulator. total important million at underscores surpassing validations differentiated first our that executive, strategy.Erica's collection.As expansion programs, position on QX. a from quarter measured period debt which XXX fixed million $XX.X than for accounts.Our that Preview early with learning's.First, real-world different

surveying In the with surveyed across results feedback, injectors DAXXIFY broadly linkage and achieve product, to rates. fact, that high DAXXIFY's provider on more a XX% DAXXIFY's price And toxin.Second, on a have a there very with at price DAXXIFY. cost has broader customers, attributes elevated aesthetic product acquisition price were and using to the are product discussion.In based involved patients short-acting the challenges lastly, X strong satisfaction is a significant price, were survey, to consumer higher top and reducing adoption adoption expectations, opportunity premium we exist. there independent expectations. Based between switch of also to switching than reasons by from we believe satisfied learned, injectors is injector is they more cited higher that first our face or consumer the their satisfied but accordingly price DAXXIFY a to these better the premium.As led deeper heard choice and their of from for DAXXIFY sensitivity,

from more the revenue a the both practitioners as coming third with economic their also provider, for million in if attractive to offset differentiated DAXXIFY's of the and indicated consumers.Further, was the with reordering and product.So of value been lower XX% we in continue majority revenue re-engaging XX% accounts we accounts volumes with to DAXXIFY performance prior XX% However, our rollout of the DAXXIFY's convert September.Further, price, selling the rate positioned attractive price purchase from with full we strategic long-term, accounts feedback, price.Revenue quarter, on our to focused approximately would the adjusted number from many price.Now on been QX with vials increased accounts the a U.S. $XX product Since Based were of XX% for chain that has this with Xst, from they larger and the up on to we've the decision average quarter, DAXXIFY to margin increase more realize Notably, value adjust the QX help to by made respectively and with opportunity over sold feedback expect them vials DAXXIFY's supply realize of business of reordering and DAXXIFY the the strong sold the price reordering customers experience matures. received account team over of competitive represented consistency third on able be reorders. point, encouraged far, by percentage meaningful is profile, injectors which quarter, our September. and by trends toxins, we've the other and a positive from the X/X customers. of of to scales September new came of the majority from as an existing also in our to pricing and the order provide gross strategy prior believe gain DAXXIFY revenue

We the RHA filler core, DAXXIFY, the leaving differentiation with to XX% and our peptide-formulated both consumer in collection, with in low that believe totaled Currently, meaningful us year-over-year implementing indicated vials X,XXX spend but pressures new early revenues encouraged on momentum down to teens experience. by strategy, $XX.X our where patient due filler market, the year-over-year, for stages broader are million, we injections the up very more we QX provides have accounts research toxin the that growth.Turning headroom that significant over spending. softness the are seeing.At customers' was still of in inflationary market despite pricing are ordered

DAXXIFY, technique with opportunity preparing and in for our SG&A order customers.In Services hosted robust Collectively, for covered other with with Investor OPUL on to strategic wind-down of RHA the RHA at injection brands a over OPUL's performance declined.Overall, by the remained and to through training. offerings, ceased portfolio, by position be training the of new growth, deep ended the reduced made XXXX, while accounts.Moving in we account efforts the have to leading the market, innovative of our where In related filler QX collection most prioritize live or relative as we've our we engagement very strong gain QX QX, Day, supported continues decision spend. we Our Nashville business introduction our our have product growth, and XXXX, we're allocation. have the X,XXX and to share most and and pleased R&D quarter the to we Experience at have focus Center several end capital exit payments in sessions HA market with to flat, allowed our Salesforce market strong a

by up result, we've for a per we've in portfolio. our aesthetics provide our or with which steps As flexibility reduction.In taken across and reinvestment to to summary, expect we progress we are $XX opportunity the year, the encouraged the maximize free us made, million OpEx approximately

partnership ensure and providers, position adoption crowded and collection, business, with For on market.For our pricing DAXXIFY, the And our gaining and remain in made engagement to for balance strategy to DAXXIFY we the Dustin? aesthetics continue OPUL U.S. partnerships. loyalty of gain Payments as partnership turn share market. program, changes we we've Dustin we support product time.For necessary we the in listened the update the an in call strategic our to the for potential of of customer drive blockbuster deliver and confident to growth year, deeper with broader therapeutics the our business and our Revance's pricing our ability engagement the committed filler new realizing while growing implement RHA over and to exit the robust in collection, drive now capabilities over a base.I'll continue to the we've growing meaningful to to made decision our remain to share RHA customers,

Dustin Sjuts

patient Thank of cautiously market in condition as cannot and side in of you, the received unique reimbursement conservative neuromodulators we weeks also with are early $X.X toxins payers. managing pleased associated highly spend dystonia large to drug disrupt botulinum has restrictions. unmet weeks We're are have Providers the market that FDA the unmet treated with the and billion is a minimize a address toxin in label population toxin QX, anticipated reemergence the marking our benefit and first to X dosing of the complex U.S. until official opportunity are optimize reasons, market, a to primary X due From medical physicians start with treating therapeutics potential Mark. and known approval experienced cervical to for to in the these DAXXIFY XXth category franchise. top significant effects well-established stakeholders mind. have need as therapeutics providers there conventional to perspective, to to be With payers' of as X the symptom Most address most XX approval, potential this patients over effects. therapeutic cycles and treatments.For botulinum XX be approval to toxin an CD our side costly X patients, needs.Revance

compelling. especially that Our with profile payers price point and engagement differentiated indicates clinical ongoing is DAXXIFY's

dynamics, potentially strong result these seen attractive treatments of stakeholders.For drug the treatment such over for a dysphagia Payers we areas the for fewer novel efficacy, new a can at has therapeutics most neuromodulator options. treatments costs.For in out-of-pocket not XX favorable years. with particularly lower in these and cure, and pricing with their that this product are importantly, Given reasons, year that DAXXIFY's can for key management more a days can gain of safety profile, compared we procedural long a benefit costs believe safely excited market cost lower other lower all muscle weakness enhance condition, treatment providers proposition a value patients strong all costs, per in which And relief patients see duration, and to to together work into from no as fewer and symptom market, opportunity formulation. offer it category outcomes to has treatment

label, program the treating XXX-unit We a over for are optimize cycles groups, a of will studied approved patients plans contains key for a and often ASPEN pleased plans XX we period outcomes weeks data clinical believe weeks, III up which we're for data, pleased optimal titrate label from of it's the patients. with physicians gives our supporting study, demonstrated our and to important individualized initial their at includes note X adjustments higher that individualized doses which respectively. XX-week to to the treatment proved our why patients.As duration ASPEN median Phase XXX-unit our doses, this that reminder, treatment study.With our dose treatment flexibility for inclusion dose to with which X In than to dystonia, physicians be doses open-label cervical That's to optimize patients. label see XX.X

our strong launched X to XX to program, through intervals and more injection optimal we treatment to into the will include product interest the have approval, program and product's patients and integration objective understand practices observe order made treatment X the the the than in so FDA optimize Approximately has potential. cycles XXX which PrevU been Following with and progress on dosing or XX great with treat practices patients, of treated far. their routine.We've

the with optimal injectors we've range switch have seen XXX to we continue will CD training from all wide Injectors share far, with in in DAXXIFY. at DAXXIFY payers clinical help XXX with or us to insights efforts to neuromodulators, of real-world and provider So with patients progress and units XXX patients continue looking full commercial which the is make and team from clinical the PrevU, DAXXIFY, for allowing at for.Initial to to the achieving about and parallel experience units, of working plans to discussions commercial approved top patient ranged treatment robust important XX inform launch.As economic are collect also the we education majority above. engage doses on great our benefits

place largest confidence lives, in to as DAXXIFY's the along for us and a VA and already with payer from commercial DAXXIFY. We potential Defense XX to with and disrupt undifferentiated seek approximately channels, of the giving secured million market category.Expanded coverage for discussions have reimbursement payer Medicare top have we Department access coverage also XX no with taken which the federal limitation, includes MACs U.S. dosing maximize

our move J-code on We granted securing solidifying launch and coverage across begun payer be infrastructure. time therapeutics commercial the by will progress are all permanent XXXX.As our we mid-year we great channels, QX, making we've into

year, includes end people sales total, first the medical We to about reimbursement, with within of infrastructure The the therapeutics completed have build-out XXXX. wave organization. the our and hiring and plan first affairs, field the In half of planned to leadership the teams. of by have our start we during XX balance

of indications Fosun in Toby for the that, in will DAXXIFY to cover Pharma acceptance April. BLA We mid-year in cervical BLA see In which turn to the XXXX.With DAXXIFY cervical approvals for financials. strategic call for our we acceptance be July, I'll DAXXIFY dystonia, for anticipates over dystonia quarter partnerships. both followed pleased are their XXXX.Finally, Fosun continued launch third the in to ready bovine for progress in received our to China

Tobin Schilke

revenue, the expect ending OpEx, product the $X restructuring was $X.X months million OpEx end third quarter to $XXX.X XX, same of charges DAXXIFY third additional last planned for period compared by million charges of September driven million for Payments the three XXXX. recorded to by XX.X% $XX.X quarter compensation, a same for through launch you, $XXX.X the of in of expenses March stock-based quarter, the exit for $XX Thank in period XXXX, the increased as same $XX.X of included amortization, third were increase charges, in of Total of revenue our restructuring the for compared million, million, we of connection the and third depreciation, an QX the of to $XX.X million million for $XX.X OPUL quarter XXXX, XXXX was non-GAAP service XX, and last year. and sales with revenue.Turning million business Collection. year, from the representing operating million RHA XXXX.Excluding the revenue and impairment costs the Dustin. to Revenue record GAAP period

operating months restructuring the X year, charges, same Investor exit to XXXX XXXX, XXXX million compared last of million. total to than September continued more $XX expense revised demonstrating to and our ended the $XXX between period business.As non-GAAP the million the $XX $XXX the while million, of Further, were same at expense product Day, million $XXX $XXX in noted impairment doubled non-GAAP and XX% within XX, of revenue million. operating a our expenses to we resulted the period, guidance payments For guidance leverage non-GAAP GAAP business, up during operating operating expense and related to guidance be R&D expect

As Capital. ended cash, our in over reflects aesthetics increased Athyrium infrastructure.We guidance a investments issued proceeds XXXX in from QX notes OpEx the reflects equivalents in the commercial $XXX our short-term cash non-GAAP primarily and million with million investments, $XX reminder, dollars which to

expect XXXX. we focused a adjusted of Investor and allocation, XXXX.Also, guidance mentioned, are first in with pleased in as we strength, revenue position capital our provide outlined financial the and product to half Mark we positive at of to executing Day, EBITDA growth are be disciplined from delivering As on top-line our

approximately fully $XX.X stock to of of I'll impact $XX were common October Mark. back XX, of shares, over excluding convertible diluted with that, the shares million, as million debt.And with Revance's the XXXX turn call outstanding Finally,

Mark Foley

Thank you, Toby.

been top customer learnings the and efforts long-term synergies With while growth portfolio. full the potential. launch, value the as launch market barrier signs from our we've our be on product's And broad-based adoption, to have encouraging.We our our aesthetics across feedback a and driving of focused key early from unlocking DAXXIFY and thereby leveraged proposition our on to early priority, to remove launch executing continue

for the tremendous to look Revance. we believe that into year XXXX, balance the of opportunity and As we out there's

are our opportunity, optimizations In position, addition and place our allocation well partnerships. therapeutics disciplined we headway that, financial the also and open long-term first that deliver capital in value strong with as I will our the as of have business, to strategic making launch we're believe questions. aesthetics to in Operator? underway our fundamentals Together in now we call for up the stakeholders.With for growth our all

Operator

First Instructions] Guggenheim comes from Fernandez [Operator question with Partners. Seamus

Seamus Fernandez

was a halfway full of the adjusted quarter.So, operational but also get you strongest the been trying bit had of we've the of price guys also to think with So, second hoping already fourth price the along on, about to quarter, for million little having DAXI. basically just change folks tends some this who we're just that of for could as for with sort help at year about degree. purchased we halfway the -- quarter holidays point, And to a got should coming $XX be that the color said, I being sort this That you the in. frame we're us the quarter of through quarter kind

revised at third quarter full a seeing the price actually quarter. we're in so, the And

quarter first have growth And which result the so, actually should impact fourth in positive we the that specifically. will in actually my price for question. That's can quarter-over-quarter DAXI anticipate change a

Mark Foley

number continue over stronger to create relationship already into this sort have QX our that accounts would a and was products, laid we'll we're right in increase we a through where we're continue that that the way quarter, build QX growth with think saw in yes, those on-the-shelf, And is be formula quarter-over-quarter build a implementing the reordering been, made QX.As see we our see business continue be QX, up of been that accounts with quarter and we to changes, on long-term engaging obviously stickiness that the we in circling previously we're foundation we and what basis, seeing. DAXXIFY So, good seasonally believe We foundation strategy. back carrying particularly up in of we to changes, what a our as going the re-engage We expect under have cases is pricing percentage see and to looking trained, in DAXXIFY. we a to the and mean, going continue on.We're been forward. encouraged through historically it listen, QX where have expect seasonality work to to would some QX that of regards -- QX out to at of to those including aisles product that need to that with quarter, to expect the we're as the we're we trained of right to these I the QX.So, continue and for implementing that would we're accounts that we up we these going in has up expect focus we the by that would some metrics revenue that's of have that we new sort is said, and

Seamus Fernandez

can hard market point us conference call where a you terms much in they're from guys you that makes bit just can some at the market? statements little this the a of the on seeing bit share competitors. you of of it's little to not -- triangulate their is provide have impact, in comments your AbbVie overall color And but that sense

you understand to perspective helpful in from guys seeing So, a what share market. would toxin it the market are be just

Mark Foley

Yes.

we data get, much it, smaller size. see the side of proprietary sources that on So, represent sources data toxin sample again, a we that

performed in was full range, X launch, but that.And got of first you Only show sort we've as portion pleased Obviously, that that know, well we again, really all annualize first competitor year of first with to actually kind combined. how quarters X% represent months. launch, year look other of of a BOTOX data you've at smaller launches full $XX outpaced the to said, XX it's how really to our which would of we're million of You that. we're the in X% going those the

about think today increase number it's going, are we the we we about less based I of more but and see into where placing. So share, moved our where that are vials as did did we're that QX on we we've

Seamus Fernandez

And one just maybe final question.

As we think trying about commenting similar on dynamics. were the get RHA understanding filler of in franchise, your we the remarks, own a what also our you in to sort prepared kind to filler of surveys, captured dynamics just of better

sales, how Again, your with by fillers. clearly that kind share fourth or growing sequentially maintaining You're we up think as that quarter? we're the tempered strongly we about RHA of about the Should should economic think impacts actual just already? seeing

Mark Foley

share economic pretty toxins little as be items it's are and sure. little we've Fillers so as pointed but see ticket it's said, the actually a proving will they're interesting, growth know bit would a were had bigger impacted, we I XX%.A in as impact Hard sure mean, the to to before,we consumer hearing, have, had hard year-over-year, more up the out healthy see prior leading market -- quarter. for I growth to considered side.Again, because a space we growth we in competitors little of on bit lot no a mean, QX and basis. more are to exactly Seamus, you are saw year-over-year a bit know seasonally declined, as we downturns. we resilient, this expect on seen would what to for the little

in early, XX% like the we we So, estimate and market penetration. feel to still we're importantly, X% probably we're

given RHA that is plenty of And that the we have so, delivered. broadly to only appreciated we're see still that and we being for in it collection continue opportunity roughly value for accounts, the X,XXX And growth. room

to see continue the environment. So some expect we we QX consumer on that a economic see would basis. But again, do impact to current be think seasonal up we'll to with

Operator

now We Chris to with Goldman Sachs. turn Shibutani

Unknown Analyst

real-world duration questions rates One and with patients This a update. you'd longer-lasting on therapeutic the comment question, wondering of is in such bit as light side second end. your little coupled weakness?And seeing effects, Chris. muscle from quick for Roger for pricing strategy you on comment Can in X our was side. the go-to-market then I dysphagia are of also on if about whether lower our setting the

So, the recall, I base you'll RHA mentioned like through you've think, accounts filler you've target that accumulated previously of line. the

accelerating This you've Is level this go-to-market Or XXX level do grown measured strategy about by think how more be you expected growth? your another growth to quarter, forward? going accounts. of that of and

Mark Foley

I'll have therapeutic Dustin one hit the first side. on the

Dustin Sjuts

it's really the on to duration early, say for Yes, us Roger, side.

frame not time As to XX time to through you XX know, weeks the of we're XX kind or that XX-week frame on therapeutic side.

far onset been of as the stuff So, we'll we through has good.There too. aesthetic some excitement's around get which we've well, seen but so that more action, been be of as PrevU, the side information to get able kind in anecdotal

can't because symptoms breakthrough we that had anything have comparative with patients, haven't or of seen put product that's kind the I side, the The interestingly, of on have they pain switched at point. this say On safety that but their the that's majority other been neuromodulators. breakthrough concerning,

it so, be will it And in unique helps a I'll us for to Mark. turn to cases. how back DAXXIFY those opportunity them understand

Mark Foley

with a we'll barrier those combination through having be can out that a then some with takes the for bring have have that because them be what without mean, strategy, with pull RHA work they continuing go-to-market trained, lot now this change, pricing to to been and some strategy trained it same. go it's customers a already And price We're appreciation it practice. new continue been get experience on But accounts an accounts those adoption.And of on embrace DAXXIFY, those focused they have there'll to already product, obviously on opening have the accounts. pricing on product, more it to to experience the with the I focus the so, Yes. of to new more into and

process all to And the sampled, a product, over the get onboarding foundation we've time, line. them naturally again, experienced where right what RHA done Given more with it growth this bit be is similar to will future trained, the for little laying we measured. want filler with the about

Operator

Our Barclays. Prasad Balaji next from comes question with

Mikaela Franceschina

Mikaela on Balaji. is This for

One Could strategy specific feedback people some one. September? understand pricing saying? color that what the quick are of one looking you're in around the follow-up. new to was any hearing really you this provide around are, Just revealed like, comments Just

Mark Foley

lot when was recently them fast be patient continue, some believe everything on that the without with the disconnected use patients listen, saying, it. trial fits just to can it clinical the But product. a customers, really for. Sure. a And understand a come take to or out and product point patients, I having Xx opportunity the duration is different are the market.And we're from out position I completely their on are how conference I through a then to skin a had customers economic think that that were my going much a in to And that could that are to best think and derms, saying everybody of allow where it which the walked data them this I patients the definitely the what's looking that feedback strategy. replicated Many not and figure saying bit acknowledge we've the premium agrees.And practice, whether onset with and of where take I me so that are had price, number Chicago. the it's is an higher with they how struggled of and the better engage forward, a the with going I actually at and the the to universe, or premium. mean, acknowledge hit. then had. in we've logic really been for less. a engage them and experience of charge not it that year nodding seen how premium people It's the I ASDS to something the right are we side, in your big in like it just people is quality little there some to I getting of think And some an head dermatology meeting, to in and support expectation higher to

that on. also is so they're them value maximum And giving focused something

Operator

Amsellem now with Sandler. turn to David We Piper

David Amsellem

just a So couple. got

as regarding guess can past, in number structure that's category. out play first, you you the I'm pricing alluded new of And strategy, for what's beyond since therapeutic Mark, level use regarding use done new have that have I that's for the receptivity been but So think been in DAXXIFY, pricing yet I DAXXIFY So then what DAXXIFY? side to you implemented going to and the DAXXIFY, is payer indication, does not by with In where potential more of other to what's it accounts new one.And the on relates cervical coverage, by how to this dystonia? off-label pricing, talk the growth new the you that words, for the accounts accounts?

Mark Foley

Yes. I'll the hit hit let and Dustin first second the then one. one

the anything, backlash in a experience the terms in received all into if that we we new wanted of accounts onboarding went pricing strategy So to I little community, DAXXIFY. because mean, and the weren't we accounts, when market, new the

and of X,XXX. the reps had DAXXIFY, customers, that we And QX were those the now backlog the a so had RHA we over doing about focused and or to on accounts in less try initially X,XXX but so Day, that Investor we than ordering at things.And really talked fact RHA we're wanted accounts targeting DAXXIFY selling

a the so a message for the and it's So process it for messaging they'll the our trial the price price, suggestion give clinical benefit outcome.And days the of majority, have for your the was as here's them initial experience, And that onboarding here the hand accounts, pricing now with to anything, that of patients streamlines this over think think you market because again, crisp come give hey, good to journey, want the or less, that an give them decide for existing have to we're and Dustin bring better from or accounts here accounts. how onboarding and more don't to wrinkle the was sort accounts share those then data, and I back get others. is other to same which research, and neuromodulators them clearly the to you going out take same or patients onboarding roll we the here opportunity can them you feedback.And was can for at whether so really an on of is Xx and to experience, sort year in the premium, more fewer value new the can toxins, time, days, this with real-world your frequency them whether a of learnings I par If to then new over some therapeutics. new the patients, I

Dustin Sjuts

David. Thanks,

think, as they a that coverage. bots some in majority we've of with we early across approved one our mentioned unencumbered off-label DAXXIFY the space that, tell. of lot kind in the as provider I kind of we seen all for indications.So this top appropriate of it's think landscape across I think indications, of allow access of And payers, of XX do kind early once gave saw DAXXIFY sees I terms the for So as payers in And payer quantification cover of conversations, earlier, as the, will our use of deem to which kind all fit. to of an the the

but other on that to providers see interest They'll think, other to to that in inbound data to indications I kind thing to have. in confidence there all of been we'll we provide right leverage terms data what of And ASPEN ULS that the data the in from has leverage we utilize neuromodulator what's the significant the do, to entails of forward determine the areas. it their across we can. look continuing space.So

Operator

Our next question comes from Stacy Ku Cowen. with TD

Stacy Ku

So, your need already through prepared supply. first, to some existing practices just something to work Seems DAXXIFY clarify like their from remarks.

back kind as repricing, to and think we as think talking So is about question. about the about sales? the accounts That's of it to that way going you're kind first right of the to impact

really KOLs Just mentioned a question, consumer a They low. DAXXIFY. of that adopted so more already still of longer-term clarification.The is is have some really awareness the second our

to larger then impact? balance you you expansion you but adopted appropriate?And both maybe be on longer-acting when then expand there adoption, curious expect expand kind that neurotoxin so to entrance, thoughts and how have scale of a any of your kind this kind already Do So might of that just finally, potential DAXXIFY of trying usage accounts balance how thoughts on DTC to can can it? so the shorter-acting. market your curious other patients How there, KOLs and

Mark Foley

products that So partnered some that that the on the DAXI circling or through make out their it to figure the to accounts of prices have back up is supply, with yes, accounts on-the-shelf we to conventional them can line to paid for get with patients so get true to where work how they discussion. switch experience, inventory, those price higher easier already that we toxins are an more that with that and in

is? that back They've of onboarded. that And the pull -- that? target to What out it that's to what imagine, of focus figuring time.And they to you the and is product Their why because been messaging it. to do so been do And gone experience. these previously, plan is side a have and that's as kind a through go staff's have through they engagement accounts, that how is if can we strategy they've said taking then on-the-shelf, some

in phase have they've accounts to an KOLs implemented we've focus is listen, the that sure new to and that messaging.In already of terms ongoing the make the through that and such so on brand to number new kind of for be small onboarding And this accounts, more hey, worked DAXXIFY the reps product want spend addition thoughtful of the those awareness, it. consumer But the of in about that is view having early of the good a supporting side been that ROI. digital of we our has launch and

not DTC.And we they then and use activate and on that go DAXXIFY, into DAXI that just there's our point, out couple the time.So of going And more so To into accounts conversion those if be can that drive expect have your have nothing, on but resources of that and your market. practices at area ways lastly, competitive there. broad-based be you of entrants more the a lot practices continued do don't near linked and trained So that have to to we on question it's with it's haven't their we versus then we're our increasingly, I But think consumers focus. accounts been a that And good can a DAXI, and have in effort should relationship of on new in-office of practice we those materials. our overall better support targeted are focus board. DAXXIFY will focused voice kind consumers amplify that looking a and term, a

theyâ€™ll effectively the depending their Korean on toxin category. looking You've short-acting believe with got PDUFA another the of date. sort in to that market, come that's happens compete We into what

kind to that evolution path so on what And in to are their the that on that our of an of it's what actually got continue formulation. grow. received having in of makes there helpful.They've of But based of CRL, more an about others.And more steps perhaps think that we we and awareness less is. continue say that's terms continues market a got And of launch sense long-acting a journey, so where has that's duration liquid a I long-acting feel importance impact will next TBD see probably on very in market are, would impact be room then out and a to their us there's we've to plenty We the QM-XXXX robust and run. and we

Operator

Samimy Annabel from comes with Stifel. question next Our

Annabel Samimy

It injectors with are on it. your aware about seem strategy the following communication of strategy. pricing doesn't like all Just

adopters accounts left? and, back So injectors have and comment R&D So Where it you that than of many in And sense process different maybe adopters accounts?And on of how you to you a able secondly, doubled peer-to-peer? and early sort do double at you maybe experiences adoption adopting with many have the newer then former of are back adopters, just have has more many as with What how guess, been adapted I the changed optimal on -- word the do you of other feel getting well. responses? how and have several and had the accounts mouth you original you having can how just you've day, your been that DAXXIFY on? profile injectors that to new started percent again,

Mark Foley

Yes.

hard So successfully we've to really a that and and Annabel, percent onboarded re-engaged. what DAXI, introduced we've that it's of new that I that pricing think, tried have program how know have those --

and territory hope that by that to for priority by vary to them it for of it.I on they near-time a aware the probably will if rep are that of it force. aren't most and going field it's be think like I that side would

easy the that is in it's a priority and term.In we of to because that where new accounts, messaging to think that we that think return where so So experience, -- is know, that DAXXIFY don't to hard I be have is onboarding crisp. that understand. greatest are didn't more in streamlined It's of but that's far, a near onboarding obviously terms it's and early, is the going kind process very

staff a integration, about to to different going a saying, a you're we price the it about line hey, what paying. do talk that's very has these it?It's discussion if easier to got think in used practice product but I've switch attributes how you're with features, people it's in for listen, and that offer the talk I when I'm

track the a I that think we've And much of that a easier. practices that heard sense. talk from that again, that makes is ton

potential the on and in a and we're seeing. existing And talked increase that of we made change so, percentage our saw what confidence like new we're having vials again, with the and prepared while of the to revenue it's that the about accounts up quarter-over-quarter and trying from customers early, experiencing high ongoing reordering number have excitement this basis.So, the in we in based about, we continue We remarks, discussions really about again, it.

Annabel Samimy

you this, I guess, the have on if initially I could but, which should should reimbursement doing training J-Code, were less a curve there feel? what of to it's outcome physicians in an is, or clinical given that you be a that don't therapeutic So, know the the schedules barring which any about art patients have And face, real adoption? think selective aesthetics an of I you that know, adoption pretty hesitation mean, I think think Okay. established. for are can you side. not Do to delays, think opposed follow-up how on do adoption just someone's you so see how use curve? this physicians, much sort of to aesthetics that would as the I we could you with compare

Dustin Sjuts

is this Annabel, Dustin.

you of it we think into see aesthetic in about the side. that And different curves. lot terms I things on so adoption thought many a that go

do journey. see therapeutic you side, less in those as of that in to toggles of think bit I but some things a little the relates it kind different

authorization, reps it'll patients. can getting into prior so, use the as they variety know, determine different them regardless using in quickly get of providers The need it. excited how that So, offices, it those be have prior does bonds how it'll on through, you our just think been I early authorization of think preview They're to our uptake? how I a program quickly coverage.And all work can

you've got our when what cervical be But different than Slower and see to are hired anticipate aesthetics, able that. you we aesthetics. would many drive Force others Field curves typically, we slower here dystonia now here. variables. But So, in get adoption will the in in so

we then adoption to from therapeutic to analyze metrics data able look provide So back preview on think we kind be kind be to getting side. continue the the forward will will of this right what that and to of

Operator

Our with Lugo Tim William comes question Blair. from next

Unknown Analyst

[ is up then like on sort questions. the guess thanks you've and launch. Hey, pretty first, CD ], obviously disciplined restructuring with I ramping for expense you're of got taking it being just this the the looks Walko but side, the Toby, you're

run during target generating reasonable know, you you for a Did therapeutic next targeting from quarters XXX of you you're through or the we have you practices. more mentioned the you few there about about sort XX changes had patients. there?And revenue be the think should said insurance on these program? So I patient? QX to side, are patients expect preview And are I as the thinking then numbers rate

Tobin Schilke

question I'll or to Toby. then over is take your and This turn first it Mark Dustin.

So of guidance guidance of provided on guidance, a obviously, $XXX the expense $XXX million is the And, the our course from perspective and for side of right that million non-GAAP annual of now. the XXXX. then things we extent to

some provides the as our on However, the us Mark optionality business. remarks, have exit the annually OPUL I investing from million with OPUL that $XX in the prepared we're and said business

that on come to one. more So

Dustin Sjuts

than This On second XXX Dustin. your we've point, treated more now. is

to that I in from clear that, through been goal You sampled. revenue phases. channel The to potentially the are is have be want revenue these mentioned early not this program these patients of patients. generate this

start it testing slow of will part utilization and do But have Now, kind is when that'll We permanent of begin be we think in J-Code of next that those non-sample a to providers. first some these providers year. setting? happen XX in others the ultimately, that'll relatively because

of really potentially with starts couple program. the trajectory over not but some A in we utilized the to get a XXX remember, and push treatments already DAXXIFY to patients I titrated of And on that them they're now we to are just overall federal aesthetic kind so that to between this with saw some like it's looks think experience from to couple their now than not DAXXIFY different patients significantly of are cervical starting dose they're going coming larger more perspective, and the be provide XXX than to lot is on doses a of other unlocking to it's dose titration anywhere through these understanding channels because so higher be We'll that first kind that a that on anticipate so of neuromodulators, start, to what what just been happens. being today cycles, with have neuromodulators, patients in put and adoption start others. actually typically it'll like.But be of side. like back different distilling or of that that preview an able input it relates we'd as and as first

Operator

turn Ear to Uy with now We Mizuho.

Uy Ear

passed guess, just a is driven question. better accounts, primarily talk the patients, a whether new or being first about and That's get this about at if in what to on sense. level level? bit my DAXXIFY? to and, XXX more patient's seems and I pricing that just the you increased strategy wondering it the Can I on quarter, that's you've by by RHA And wanted

Mark Foley

the that's and change that I on program the first patients, on to like was, the pricing the I our that and expectation, the hey, and based taking, took justification so price that Uy, or rationale that's feedback, whether for on passed being not which mean, Yes, that's product. we're the whole we and positioning

I and switch and start makes for As discussion, sometimes involved premium, a longer then a attaching more it expectations.

and get get follow them at not we that, experience, existing comfort level the new same when your with onboard accounts, really as is let that price accounts, back go patients familiarity or and accounts to so, we you know this current toxins, and that. so all to we price more we've And it.So, sure adjusted the hope. can it I'm that

maybe we say, a but take whatever, made perhaps I I good that Some a would or thing. whole reason premium And modest the think the that's change. that's

to the through. way are to, the of them and be these the And doing You that then a our know, subtleties experience familiarity that lot they a of product, are work and that, more products second optimally with to sort think really question. way that's majority going we all with right there because need get

Uy Ear

increase the RHA. by wanted whether that I account in just to quarter, know the was driven more

Mark Foley

said, last said were we at we accounts. we X,XXX Yes, Yes. quarter, around

know, accounts. then we accounts. said Day we're, And then ordering And Now on we're X,XXX than less this X,XXX. Investor X,XXX That's an quarter, that, at had total. earnings DAXXIFY we you

you're seeing, in the good think I So, DAXXIFY growth accounts.

to going the a probably that's lot So, represent, in growth of the quarter.

Operator

Belanger turn Company. now Needham to Serge We with &

Serge Belanger

of quarter breaking the it launched advertising this of BOTOX. a trending can DTC, with And product, secondly, you with volumes advertisement, of price then when third the up how catchy First one, launched vial you talk ahead in was you change? terms about

switch the emphasizing opportunity DAXXI. think I for

lower better coming positioned new price, curious now you're think whether to aesthetic catch market. the you patients Just with into the the

Mark Foley

first. Serge. take Maybe second the one Yes, I'll

practice to of positioned the this credibility level. something In DTC of them we we price product, it's the patient my their injector we're program can earlier, and I there's as at with new. believe If that switch for I best mentioned and I adoption does how that what that that neurotoxin.We and terms coming is this mean than practice is way offer has I in kind into, that did, bought and value in that want of not to the about believe a getting I like conventional the the that away marketplace change that out is more currently to that asking the far because patients the provide is valuable believe think something a they're consumer I

the most they them come a than in, feedback you you can know, value, them have for it injector for sort out either a lot terms over materials the give our year.So, So know, them and have something them knowing less another give from give can time that give a of Xx we're to or, hey, I more value premium of once And they going in Most the is patients experience are something facilitating new charge they biggie was level in that the pricing I value the lean the of we in have the then of them terms staff And tools entire And about spent continue to this make of they today. product. right that to we effort do of patients to for at sure on trying switch. think lever figure will option with don't the a practice see then that, dollar. the switch. arming time, they my that how best and that

quarter of roughly to mean, -- going right most And anyways. X/X talked That's tracking, more the quarters switch we're and loaded up just terms over.In revenue. where so volumes the both vials the trying accounts is. the up the month the it revenue of about the of third them capture to the it's side in of fact patients way on reordering quarter that are the the the giving Obviously, and back business and tools allowing them and reorder that that, made to to the about, terms I we or less new, be about this made majority and dollars September of of third

the which in month believe So, to QX. third compared when we saw we June, what we really good signs, particularly early was it are

the what like that. saw of in we impact we terms so And of

And believe we're right was this believe we so, time and like we there. feedback right to right enough what the information out move we but on influence based that, the again we seeing based that received was having move that made the we what on the

Serge Belanger

product quarter aesthetics Okay. big few and there's neurotoxin day if that during days during players there's a a uh um I'll in have you're DAXXI Maybe sneak just fourth that the quarter curious, for is quarter more one a if prominent the -- quarter? a have planning to

Mark Foley

from around and for obviously accounts and competitors side try we've bulk while couponing sort sort incentivize RHA purchasing out of days use been to patient filler These have that the we've and several and go. these and training last the of education Yes. over weathered continue and on that to been with differentiation the we strategy in our cornerstone of way to a lean tended years product right not that's that's to in a feel

wouldn't once we love strategy, continue going getting with new experience allowing on this familiarity to on-boarded with in us they the day. We're I going to product. of terms focus their So that expect to them give really from DAXXI think to anything a in the more QX accounts get patients they're pricing

QX. that's what in on focused And really so we're

Operator

with question next Our Tsao H.C. Douglas comes from Wainwright.

Douglas Tsao

to make but clear. it, just said it's you want I think I Mark, sure

from did saw change, basis, price offset so In revenue a September see terms sufficient of in after units increase or sort you of the you what in lower were getting? that the you total price to

Mark Foley

Yes.

XX% our as press million. $XX showed $XX.X too, in versus increase million quarter-over-quarter basis. at a think And release I units in revenue saw on we we came

XX% uptick healthy offset nice price we a by an that saw adjustment made. of was increase but units, that we of So the

Douglas Tsao

understand trying September. guess to what you I saw Well, in I'm

with I when out -- came September, and business so in your you mean, So it

Mark Foley

Go ahead.

Douglas Tsao

make higher What ultimately, saw in part? a it just better or were to materially you it Mark? specific you so see to was I what you revenue to that did most and sort going units an of to say, going increase was it say, September, month absolute standpoint, than the was from for

Mark Foley

in Yes, well, I we mean, that's saw. busier as Most a look we what of at September. so and come market the since another a weren't quarter. year. vacuum last as in We September for did again, that proxy know I say reorder our June we hard mentioned, it third September tends sold liked September our vials a to to be to it's month would revenue month, did the trends exactly be of really reorder of in the And

And that attributing change. adjustment price that customers -- the to so, and we're the how embrace

Douglas Tsao

Okay. what little do. And analyst, but I'm so words we parsing maybe a bit, that's research I'm an equity

or commentary re-engage dialogue having DAXXIFY having, curious, was some needing some people to having the off the were customers, perhaps about terms I'm in somewhat after trouble or you were In with with re-engaging your or going? experience just cut had early frustrations of

Mark Foley

some some working figured had their definitely Yes, the we out even I majority they product love wallet patients happy they think leaned is in love really I with it. that they accounts get where DAXXIFY where it, the had and mean, the heavily share they're that look premiums we

if sure accounts you practices, got not know come if where before but they expressed, that dose accounts those I'm didn't that's some we've had they of a that working, of So definitely patients, it back, if worth didn't take set a hey, some the expectations, is that profile have right select we number product of right, the them and pictures. sort the the they for treated number cost then didn't for performance trial

got as So is spend to sort little to the or hit that I we've toxins it time they accounts willing hit feedback that's I is this I'm those is not having these fits.And product, point educating obviously it bit they If could practice of said, to point of that through. if the I'm so line shelf, let's re-engagement margin, got of reserved out where figure then broader where that piece. this the them, on can they patients experience with so it, into and subsets now pull me okay. resonated integration extra just adoption. and of like talk sort it's our in And for it you're compare had the baseline, And they kind them can a taking with re-engagement hard, that and some a of, through, up.And price re-engagement get that's work to to piece. the is it how challenging. eat more where where specific priced and goal accounts, piece so gone back lean that that the I this I've we about in of is where of And such other as okay, This patients, we or better a get but in think really stalled some then would it product that I that

talk how many about Let's patients we treat.

Let's things. about you've consistency, that got sure those talk making message all

Operator

Flynn Morgan We Stanley. to now Terence turn with

Terence Flynn

of in should is timing the then revenue into conjunction or too, is Toby, is with gross more is that any as results event we the it just, margin think and DAXXIFY clarity later XXXX early probably how you're about on the for how guidance in fourth for year quarter progression thinking we guess, January about it I head 'XX?

Tobin Schilke

our timing. that that quesotins, so the specific now guidance on for that's on been half Terrence think we now, Good haven't of right guidance particular right timing except the to we first appropriate And the give XXXX. of

efficiencies and through gross profile, the margin QX Regarding QX versus the of has profile. in we that quarters. reported that were chain to sort profile largely and XX%-ish look our QX able between prices been, that starting if we been again, XX%, of past gross sort XX%, and were GAAP supply same the in with sort was that at September, was but gross you over so found pretty several QX.And we the of margin that's for relatively RHA gross of mix QX, offset to had were Revance's consistent, the obviously, about margin And DAXXIFY lower to margin the QX, QX, QX, DAXXIFY GAAP maintain

start will product, DAXXIFY. was to versus of of approved for as upwards things some be we One the expensed of that expect sold prior cost the we flux utilize on goods capitalized the there sort the that product

prices. will that partially However, some a fluctuation are so those but stabilizing cheaper that sure are offset thing economic AGI on the margin unit around going expect be manufacturers making that to the is other and into by much we perspective actually generally offset and trying larger

Operator

Navann comes BNP Paribas. question last Ty with from Our

Navann Ty Dietschi

for far change. -- on the the price thanks so And

you existing Just some Salesforce experience? for existing have an and have additional me, your on accounts what take it estimate have the do re-engage re-engaged target? on pricing the from to have been of been accounts ones that will Or how long trained versus with percentage

Mark Foley

Ty, accounts. QX, in said look don't Navann X,XXX than of were necessarily Again, I we we through less number. at end the have if great you a

hoping might So can listen, change given accounts these some would back territory the They re-engagement that, position as inform in of been process take contacted their I'm I'm there's re-engage. at may in price the work that before, in to where of re-engagement say that said I And of by are we've a and bit. don't most a they question I they have different come is, that in through to a contacted. that a then be re-engage. the little accounts.And little the sure know. accounts a them not process And say, on-boarded to number each But just have hey, we while reps as been then, new of

Operator

We'd Ladies concludes participation. you and thank today's for this conference our and gentlemen, call. your Q&A to like

lines. You may now disconnect your

Revance Therapeutics (RVNC) 8 Nov 232023 Q3 Earnings call transcript