Crown Laboratories to Acquire Revance Therapeutics at Lower Price

(Reuters) – Crown Laboratories announced on Monday that it would acquire Revance Therapeutics (NASDAQ: RVNC) at a drastically reduced price, about 50% lower than initially agreed upon in August, leading to a 20% drop in Revance's stock price.

The reduced purchase price follows months of delays, as Revance, known for its alternative to AbbVie’s Botox, encountered disputes with its partner Teoxane.

According to the new agreement, Crown will purchase all of Revance’s outstanding shares at $3.10 per share or an estimated $325.20 million. This contrasts with the previous valuation of $6.66 per share or $924 million.

Revance was notified in September about exceeding the maximum allowed buffer stock levels and failing to appropriately promote Teoxane’s dermal fillers. Though Revance refuted these claims, the notice initiated an extension of the deal’s closing date initially set in August.

In October, Revance and Teoxane updated their brand guidelines and established minimum purchase commitments through 2029.

Stifel analyst Annabel Samimy commented, "This significant devaluation reflects multiple forced errors, including a failed launch strategy for Daxxify, reputational damage, and breach of contract accusations with Teoxane."

Revance had initially priced Daxxify, a competitor to Botox, at a premium for its claimed extended efficacy but lowered the price last year due to customer acquisition struggles.

In the first nine months of 2024, Revance generated $177.2 million in product sales and had originally projected $280 million for the year, which it later retracted in November.

The companies anticipate closing the transaction in the first quarter of 2025.