Stifel initiated coverage of Revance Therapeutics (NASDAQ:RVNC) with a “buy” rating and $50 target price. The stock closed at $17 on Jan. 28.
Revance’s Daxi product represents “one of the first truly novel neurotoxin formulations, potentially offering six-month duration of effect as compared to Botox and competitors’ three-to-four months,” writes analyst Annabel Samimy.
“As consumer patterns shift and new entrants emerge, Revance’s differentiated long-acting product has the potential to carve out a sizeable share of the ever-growing toxin market, in both aesthetic and therapeutic settings,” she added.
Daxi has completed a large and compelling Phase 3 program in cosmetic glabellar lines, Ms. Samimy said. The company has several other therapeutic indications in Phase 3 and Phase 2 trials, including cervical dystonia, upper limb spasticity, and plantar fasciitis indications, with trials for migraine, lateral canthal lines, and forehead lines waiting in the wings.
She said unseating Botox might not be likely, but being an “innovative product in a sea of like choices is an enviable position for Revance. We estimate a procedure penetration of 20% share at peak, with potential for greater upside for both cosmetic and therapeutic.”
