Market Overview

JMP: Changing Competitive Landscape Makes Revance Less Appealing

Share:
JMP: Changing Competitive Landscape Makes Revance Less Appealing
Related RVNC
50 Biggest Movers From Tuesday
Mid-Afternoon Market Update: Dow Drops Over 700 Points; Barnes & Noble Education Shares Plunge
Week In Review: China Pharmas Announce Deals Worth $1.5 Billion (TalkMarkets)

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

DateFirmActionFromTo
Nov 2018GuggenheimUpgradesNeutralBuy
Sep 2018JMP SecuritiesDowngradesMarket OutperformMarket Perform
Mar 2018Goldman SachsInitiates 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

StockFirmActionPT
BAPItau BBAUpgrades274.0
DVNJP MorganDowngrades37.0
EOGJP MorganUpgrades118.0
EQMBarclaysDowngrades48.0
EXPDGoldman SachsDowngrades68.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

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

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