Revance Therapeutics stock soars 16% as Teoxane proposes $360m deal

Teoxane S.A., a global leader in the medical aesthetics sector based in Geneva, Switzerland, has made a bold move to acquire Revance Therapeutics, Inc. (Nasdaq: RVNC) for $360 million in cash. The offer, announced on January 6, 2025, values Revance shares at $3.60 per share, representing a 16% premium over the $3.10 per share deal Revance recently agreed to with Crown Laboratories, Inc.

This proposal highlights Teoxane’s strategic ambitions and confidence in its financial strength. If successful, the deal could reshape both companies’ positions in the competitive medical aesthetics market.

Why Teoxane’s Proposal Stands Out

Teoxane’s offer comes as a direct challenge to Revance’s amended merger agreement with Crown Laboratories, announced in December 2024. That revised agreement saw the takeover price slashed from an initial $6.66 per share to $3.10, causing Revance’s stock to tumble 21%.

By presenting an offer significantly above Crown’s terms, Teoxane positions itself as a more attractive suitor. In its statement, Teoxane highlighted that its offer provides immediate, superior value to shareholders. The company also expressed confidence in the synergy between the two businesses, citing an established commercial relationship through a distribution agreement that already contributes significantly to Revance’s revenue.

A Smooth Path to Closing

Teoxane emphasized its readiness to execute the acquisition with minimal hurdles. The company has already conducted extensive due diligence based on publicly available information and requires only limited confirmatory checks.

From a regulatory perspective, Teoxane does not anticipate significant risks or delays. Its existing U.S. sales are conducted through Revance’s platform, eliminating potential concerns about overlapping operations or geographical conflicts.

Furthermore, Teoxane has already begun discussions with financing partners familiar with its operations and the medical aesthetics sector to secure committed funding. The company plans to present fully underwritten, binding commitments before finalizing the transaction.

Financial Strength and Strategic Vision

Teoxane’s ability to fund the deal is underpinned by its strong financial position. The privately held company boasts substantial cash reserves and a track record of profitability. Its financial advisor, Jefferies LLC, is assisting in securing the necessary capital, while legal counsel is being provided by Davis Polk & Wardwell LLP in the U.S. and Walder Wyss SA in Switzerland.

This acquisition is more than a financial transaction; it reflects Teoxane’s broader strategy to solidify its global leadership in medical aesthetics. The company’s dermal fillers, produced with its proprietary RHA technology, are sold in over 90 countries and rank among the top three in key markets, including Europe, the Middle East, and the U.S. With this deal, Teoxane aims to strengthen its presence in the American market while leveraging Revance’s established platform for growth.

Implications for Revance Shareholders

Revance shareholders reacted positively to Teoxane’s announcement, with the company’s stock price jumping 16% after the news broke. The offer has drawn attention as a clear alternative to the Crown Laboratories agreement, which some analysts have criticized for undervaluing Revance’s potential.

By aligning with Teoxane, Revance stands to benefit from enhanced financial resources, deeper market penetration, and operational stability. This partnership could unlock new opportunities for Revance’s product portfolio and expand its market share in the rapidly evolving medical aesthetics industry.

What Lies Ahead

Teoxane’s proposal underscores its confidence in Revance’s capabilities and highlights the growth potential within the medical aesthetics sector. As the acquisition process unfolds, stakeholders will closely watch how Revance’s Board of Directors responds to this superior offer.

Should the deal proceed, it could set a precedent for strategic partnerships and consolidation in the sector, emphasizing the value of synergies and financial stability in navigating a competitive global market.