On Friday, Piper Sandler adjusted its outlook on Revance Therapeutics (NASDAQ:), reducing the stock price target to $11 from the previous $20, while maintaining an Overweight rating on the stock. The adjustment comes after Revance reported first-quarter financial results, revealing an adjusted net loss per share of $0.43 and revenue of $51.9 million.

These figures stood in contrast to the Street’s expectations, which anticipated a slightly higher loss per share of $0.46 and revenue of $56.4 million.

Despite the lowered stock price target, the firm’s analysts believe Revance is on track to meet its 2024 net sales goal of at least $280 million, a figure that is slightly below the consensus estimate of approximately $292 million. The company’s management has indicated that more than half of these sales are projected to come from its RHA product line, according to commentary from Revance.

Revance’s Daxxify, a product used in facial aesthetics, is showing promising performance with sales annualizing to nearly $90 million after five full quarters in the market. Moreover, the RHA franchise is annualizing at about $120 million in sales, approximately three years after its launch.

The first quarter is typically the slowest in the facial aesthetics industry, yet these figures suggest potential for the company to reach its stated top-line goals for the year.

The firm’s analysis suggests that Revance Therapeutics has a “fighting chance” of achieving its 2024 revenue targets. The analysts forecast that the company could reach a break-even point sometime in 2025. The revised price target of $11, down from $20, reflects more conservative estimates for Daxxify and RHA sales beyond the year 2024.

InvestingPro Insights

Piper Sandler’s recent price target adjustment for Revance Therapeutics (NASDAQ:RVNC) to $11 coincides with some critical financial metrics and market performance data. According to InvestingPro Data, Revance’s market capitalization stands at $447.08 million, with a significant revenue growth of 76.55% in the last twelve months as of Q4 2023. This growth is notable, especially considering the company’s revenue of $234.04 million in the same period.

Despite this revenue upswing, Revance’s profitability challenges are evident. The company’s P/E ratio is negative, at -1.85, and it has not been profitable over the last twelve months. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the stock price has experienced a considerable decline over the last year, with a 1 Year Price Total Return of -88.15%.

Still, there is a silver lining. Revance’s liquid assets exceed its short-term obligations, suggesting a degree of financial stability. Moreover, the company has seen a significant return over the last week, with a 1 Week Price Total Return of 8.61%. This could indicate investor optimism in the short term, potentially reflecting confidence in the company’s strategic direction or product offerings.

For those interested in a deeper analysis, InvestingPro offers additional insights on Revance Therapeutics. There are more InvestingPro Tips available, which could further guide investment decisions. To explore these tips and gain more detailed financial insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

By Karen Freifeld

(Reuters) -A new version of a congressional bill that would restrict U.S. business with certain Chinese biotechnology companies including WuXi AppTec and BGI would give U.S. companies until 2032 to end work with the firms, extending the amount of time to find new partners.

The latest Biosecure Act also adds WuXi Biologics (HK:) to a list of biotech companies of concern, according to a copy seen by Reuters. The other companies on the list are BGI , MGI, Complete Genomics and WuXi AppTec .

The revised bill will be introduced on Friday and a U.S. House of Representatives committee is expected to decide next week whether to move the bill forward, according to a House Committee on Oversight and Accountability spokesperson.

The committee markup, expected Wednesday, is a procedural step in the process to the bill’s possibly becoming law. A similar Senate bill was approved by a committee there in March.

The bills are designed to keep Americans’ personal health and genetic information from foreign adversaries. News of the proposed legislation has driven WuXi AppTec and WuXi Biologics shares down this year.

A spokesperson for WuXi Biologics said they had not yet seen the revised bill and could not comment. WuXi AppTec and MGI did not immediately respond to requests for comment.

Complete Genomics said it is “encouraged that policymakers understand the detrimental impacts to the U.S. biotech supply chain – and how the legislation would jeopardize the drug supply for millions of American patients.” It said it does not have access to personal DNA data and should be removed from the legislation.

The latest bill “highlights a key vulnerability in our global supply chain and importantly provides a reasonable timeframe for companies to decouple their reliance on China-based biomanufacturing,” John Crowley, president of BIO, an industry association, said in a statement.

The association sent the results of a survey of member companies to congressional contacts on Wednesday. Of the 124 biopharmaceutical companies and biotechnology companies that responded, 79 percent had at least one contract or product agreement with a China-based or owned manufacturer.

The “vast majority” of business described in the survey is assumed to be with WuXi Biologics and WuXi AppTec, Crowley said in an interview.

Companies estimated it would take up to eight years to switch manufacturing partners, the survey found.

WuXi AppTec has said it fully complies with the strict reporting, oversight and inspection requirements of its customers and U.S. federal agencies.

BGI Group said, as it has in the past, that it supports protecting Americans’ personal data and did not have access to the data. It said the bill would drive BGI out of the U.S. and limit competition and that a U.S. company had been lobbying on it.

“This legislation will give a single company total control of the U.S. market, resulting inevitably in higher prices and reduced choice,” Complete Genomics added.

(Reuters) -McDonald’s U.S. franchises are considering launching a $5 meal deal, a source familiar with the matter said on Friday, as the fast-food chain looks to draw more inflation-hit customers to its restaurants.

Global restaurant chains such as McDonald’s (NYSE:) and Starbucks (NASDAQ:) have seen lower-income customers opting to eat more meals at home amid a cost-of-living crisis, forcing the companies to offer steeper promotions to attract them to their outlets.

McDonald’s, which has a higher exposure to the lower-income cohort, saw its global sales growth slowing for the fourth straight quarter.

“I think it’s important to recognize that all income cohorts are seeking value,” CEO Chris Kempczinski said on a post-earnings call last month.

Bloomberg News first reported about McDonald’s plans.

McDonald’s shares were up about 2% at $272.80 following the news.