Needham starts Revance Therapeutics at buy; PT $42


Needham initiated coverage of Revance Therapeutics (NASDAQ:RVNC) with a “buy” rating and $42 price target. The stock closed at $30.60 on March 26.

Revance is involved in the development of novel and differentiated botulinum toxin (BTX) products for treating aesthetic and therapeutic conditions. Its lead product candidate, RT002, is an injectable BTX designed to provide targeted and long-lasting efficacy.

Analyst Serge Belanger writes that thus far, RT002 has demonstrated high-response rates and duration of effect of about six months in two Phase 3 trials as a treatment for glabellar lines and in a Phase 2 study in cervical dystonia.

“The current Revance valuation continues to discount RT002's differentiation vs. existing BTX products and its potential role in the neuromodular market,” he added. “We expect RT002's long-lasting duration to be a key driver for significant uptake in both the aesthetic and therapeutic market segments."