Revance Therapeutics Stock Plummets To 4-Month Low As Crown Labs Halves Takeover Offer: Retail Fumes

Shares of Revance Therapeutics Inc. plummeted over 20% to a four-month low Monday after private skincare firm Crown Laboratories drastically reduced its takeover offer.

Crown will now acquire Revance in an all-cash deal valued at $3.10 per share, down from the initial August agreement of $6.66 per share. 

The revised deal, worth about $325 million in total equity, marks an 18.9% discount to Revance’s Dec. 6 closing price. 

The acquisition will make Revance a private company, with the deal expected to close in the first quarter of 2025.

The price cut follows a notice received by Revance in September alleging violations of an exclusive distribution agreement with Teoxane. 

Both companies acknowledged that these violations could significantly impact Revance’s profitability and cash flows, prompting the adjustment.

RVNC sentiment and message volume on Dec. 9 as of 11:30 am ET | source: Stocktwits

Retail sentiment on Stocktwits turned sharply bearish, accompanied by ‘extremely high’ message volume as investors expressed frustration. 

Posts highlighted disappointment with the slashed valuation and uncertainty about Revance’s future.

Revance, known for its anti-wrinkle injections, has faced a challenging year, with shares down 56.5% so far this year.

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