Discontinuation Of Opul Business Weighs On Botox Rival Revance Therapeutics: Analyst Sees Non-Cash Impairment Charge In Millions
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Serge Belanger has reiterated a Buy rating on Revance Therapeutics, Inc. (RVNC), but lowered the price target from $40 to $35. This is due to RVNC discontinuing the Opul business, which is expected to lead to a non-cash impairment charge of $80 million-$100 million. The analyst also lowered the revenue estimate for FY23 and FY24. Despite this, Belanger expects Daxxify to be a blockbuster product with peak sales of $500MM in both aesthetics and therapeutics.
September 20, 2023 | 6:29 pm
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Revance Therapeutics' decision to discontinue the Opul business is expected to lead to a non-cash impairment charge of $80 million-$100 million, causing the analyst to lower the price target and revenue estimates.
The discontinuation of the Opul business is a significant event for Revance Therapeutics, leading to a non-cash impairment charge and lowered revenue estimates. This is likely to negatively impact the company's stock price in the short term.
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