What's Going On With Botox Rival Revance Therapeutics' Stock Today?
Portfolio Pulse from Vandana Singh
Revance Therapeutics Inc (NASDAQ:RVNC) plans to exit the OPUL payments business due to significant costs and resources required. The exit includes a reduction in OPUL personnel, termination of OPUL R&D activities, and a reduction of outside services expenses. The company expects to record a restructuring charge of up to $7.0 million. Exiting OPUL by the end of Q1 2024 is expected to free up approximately $20 million a year for reinvestment. The company is funded to breakeven and expects to be Adjusted EBITDA positive in 2025.
September 19, 2023 | 3:03 pm
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Revance Therapeutics' decision to exit the OPUL payments business could lead to short-term instability due to restructuring costs, but may free up significant resources for reinvestment in the long term.
The company's decision to exit the OPUL payments business is a significant move that will likely lead to short-term costs and potential instability. However, the move is expected to free up approximately $20 million a year for reinvestment, which could strengthen the company's financial position in the long term. The company's stock price has already fallen by 29.60%, indicating that the market has reacted negatively to the news in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100