Market Overview

JMP: Changing Competitive Landscape Makes Revance Less Appealing

JMP: Changing Competitive Landscape Makes Revance Less Appealing

Revance Therapeutics Inc (NASDAQ: RVNC), a biotech company developing a botulinum toxin product, could face a competitive backlash, according to JMP Securities.

The Analyst

Analyst Donald Ellis downgraded Revance from Market Outperform to Market Perform.

The Thesis

The downgrade of Revance is based on Allergan plc (NYSE: AGN)'s recently released data in Botox responders showing that 80 units of Botox 80 produced a more than 1-point improvement in 24 weeks in 39 percent of study patients, Ellis said in a Monday note. (See his track record here.)  

Revance is testing RT002, daxibotulinumtoxinA injection, in a Phase 3 study for Glabellar Lines while also pursuing Phase 2 trials for cervical dystonia and plantar fasciitis.

Revance's RT002 showed similar improvement in about 42 percent of study population, the analyst said. 

"AGN's data suggest that the longer duration of activity for RT002 may be partially or primarily due to a 'dose' effect," Ellis said.

Allergan's recent data minimizes the benefit of extended duration claims for RT002 vs. Botox, the analyst said. 

The FDA requires a more than or equal to 2-point improvement, and none or mild on wrinkle severity, which both companies have not disclosed, he said. 

JMP does not expect the companies to make 24-week claims.

"AGN can educate doctors on longer duration with higher doses at medical conferences, but its reps cannot legally promote longer duration directly to doctors," Ellis said. 

The Price Action

Revance was down 8.28 percent at $23.55 at the close Monday, while Allergan was down 2.09 percent at $184.29. 

Related Links:

Cantor Fitzgerald Names 8 Upcoming Biotech Catalysts

The Week Ahead In Biotech (Sept. 16-22): Conferences, PDUFA Dates, Clinical Trial Results And IPOs

Latest Ratings for RVNC

Jun 2019Initiates Coverage OnOverweight
Feb 2019Initiates Coverage OnMarket Perform
Feb 2019Initiates Coverage OnBuy

View More Analyst Ratings for RVNC
View the Latest Analyst Ratings

Posted-In: Donald Ellis JMP SecuritiesAnalyst Color Biotech Downgrades Analyst Ratings General Best of Benzinga


Related Articles (AGN + RVNC)

View Comments and Join the Discussion!

Latest Ratings

WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Bank Of America Raises JPMorgan Price Target, Sees Multiple Growth Avenues

Opinion: It's Time To Have Active Managers Run Cannabis Investments