Crown Laboratories, Inc., a privately held player in the skincare industry, agreed on Monday to acquire Revance Therapeutics, Inc. (NASDAQ:RVNC).
Under the terms of the agreement, Crown will commence a tender offer to acquire all outstanding shares of Revance's common stock for $6.66 per share in cash, representing a total enterprise value of $924 million.
The purchase price represents a premium of 89% over Revance's closing market price on Aug. 9, 2024, and a 111% premium to Revance's 60-day volume-weighted average price.
Also Read: Botox And Similar Injections Have Associated Risks: Consumer Group Pushes for Stronger Warnings.
Revance Therapeutics' lead product, Daxxify (daxibotulinumtoxinA-Ianm) injection, is indicated to treat frown lines. It competes with AbbVie Inc's (NYSE:ABBV) Botox.
The FDA approved Revance's Daxxify in September 2022.
Revance's Daxxify is known for its longer-lasting effects, lasting approximately six months, almost double the duration of Botox.
In the second quarter of 2024, Daxxify generated sales of $28.69 million, up from $22.63 million a year ago. Daxxify aesthetic units sold increased 65% year-over-year and 15% sequentially; over 3,700 ordering accounts were reached.
Jeff Bedard, founder and Chief Executive Officer of Crown, praised Revance for its "impressive track record in developing innovative aesthetics offerings that will complement Crown's innovative line of skincare products."
The transaction is expected to close by year-end. Following the merger, Revance will be wholly owned by Crown, and its stock will no longer be publicly traded on Nasdaq.
Price Action: RVNC stock is up 86.3% at $6.57 at last check Monday.
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