The acquisition announced Monday will give Crown access to Revance’s Daxxify, a competitor to AbbVie’s Botox, which is indicated for frown lines and for cervical dystonia.
Revance Therapeutics on Monday agreed to be acquired by skin science specialist Crown Laboratories, which will pay $924 million for the Tennessee-based biotech and its portfolio of aesthetic products.
Under the agreement, the privately held Crown will snap up all of Revance’s outstanding shares for $6.66 apiece, which represents an 89% premium over the biotech’s closing price on Friday. The purchase price is also a 111% premium to Revance’s 60-day volume-weighted average price.
The companies expect to close the transaction by the end of the year, pending regulatory and antitrust clearance as well as other customary closing conditions. The acquisition is also subject to Revance stockholders tendering their shares representing at least a majority of the voting power in the biotech. Revance’s board of directors has unanimously approved the acquisition and recommends that stockholders tender their shares.
Revance CEO Mark Foley in a statement said that the company is “excited” about the acquisition, which will allow Revance “to broaden our provider network as well as provide us with an expanded portfolio of products.”
“Scale and product breadth are important factors in the markets in which we compete and, by combining with Crown, we will be able to offer our customers a more compelling range of products and services,” Foley said. Once the deal has been consummated, Revance will be fully integrated into Crown and will cease trading on Nasdaq.
Monday’s acquisiton agreement will combine two complementary companies in the aesthetic space. Revance markets Daxxify (daxibotulinumtoxinA-lanm), a main competitor to AbbVie’s Botox (botulinum toxin).
Daxxify is a peptide-formulated neuromuscular blocking agent that works by blocking the release of acetylcholine, inhibiting cholinergic transmission at the neuromuscular junction. The drug was first approved in September 2022 to temporarily ease moderate to severe frown lines in adults, and then again in August 2023 for cervical dystonia, its first therapeutic indication.
In addition to Daxxify, Revance also has a product collection of hyaluronic acid fillers for facial lines.
Crown has both aesthetic and consumer skincare products. Its aesthetic franchise includes an anti-aging cream that uses microbe technology, a microinjector for skin wrinkles and acne scars and a platelet concentration system portfolio. Crown’s consumer skincare line includes several creams and lotions designed to address various skin issues.
