Revance Therapeutics Releases Fourth Quarter and Full Year 2013 Financial Results and Provides 2014 Outlook

Revance Therapeutics Releases Fourth Quarter and Full Year 2013 Financial
Results and Provides 2014 Outlook

NEWARK, Calif., March 26, 2014 (GLOBE NEWSWIRE) -- Revance Therapeutics, Inc.
(Nasdaq:RVNC), today reported financial results for the three and twelve
months ended December 31, 2013.

Recent Accomplishments and Progress Toward Milestones

  *Closing of the Company's initial public offering (IPO) in February 2014,
    resulting in net proceeds of $102.7 million, after deducting the
    underwriting discount;
  *Initiation of the first wave of the RT001 US Phase 3 open-label long-term
    safety study for the treatment of lateral canthal lines (crow's feet
    lines);
  *Planning to initiate the RT001 US Phase 3 pivotal study for the treatment
    of lateral canthal lines (crow's feet lines) in the first half of 2014;
  *Progress on the Company's injectable RT002 Phase 1/2 clinical study, with
    duration results in glabellar lines anticipated in the first half of 2014;
    and
  *Addition of Angus Russell as Chairman of Revance's Board of Directors,
    further expanding our strategic leadership capabilities.

"The past several months have been transformational for Revance," said
President and Chief Executive Officer, Dan Browne. "With the success of the
recent IPO, our strong balance sheet enables us to successfully execute our
clinical programs, a key element towards commercializing RT001 and RT002. We
look forward to reporting duration results from our RT002 injectable botulinum
toxin in glabellar lines in the first half of 2014 and Phase 3 efficacy data
from our RT001 topical product candidate for treatment of crow's feet lines in
the second half of 2014."

"I am also pleased to share that we initiated the RT001 Phase 3 open-label
long-term safety study in crow's feet lines this quarter, earlier than we
planned. Starting this study is a key step toward generating the long term
safety database for RT001."

Clinical Study Design

The RT001 Phase 3 long-term safety study in crow's feet lines is an
open-label, multi-center, repeat dose study that is expected to enroll up to
1800 subjects. The primary goal of the study is to generate the safety
database to support the filing of our Biologics License Application (BLA) with
the U.S. Food and Drug Administration (FDA) and the Marketing Authorization
Application (MAA) with the European Union. Data from this study is expected to
support a proposed dosing regimen of up to four times per year, consistent
with the other botulinum toxins on the market. The study may last up to 24
months and is expected to enroll patients in several waves over the next year.

Fourth Quarter Financial Results

Net loss applicable to common stockholders for the three months ended December
31, 2013 was $14.0 million, or net loss of $53.63 and $47.11 per basic and
diluted share. This compares with net loss applicable to common stockholders
of $10.9 million, or net loss of $53.69 per basic and diluted share for the
three months ended December 31, 2012.

Revenue for the three months ended December 31, 2013 increased by $0.2 million
to $0.3 million, from $0.1 million in the 2012 period. The increase reflects a
one-time milestone in connection with the asset purchase agreement for the
sale of Relastin to Precision Dermatology, Inc.

Total operating expenses for the three months ended December 31, 2013 were
$9.2 million, compared with $18.5 million for the 2012 period. Research and
development (R&D) expenses were $6.2 million for the three months ended
December 31, 2013, compared with $16.9 million for the 2012 period. The
decrease is primarily attributable to one-time costs incurred in connection
with the reacquisition of the RT001 and RT002 technology rights from Medicis
Pharmaceutical Corporation in October 2012. Sales, general, and administrative
(SG&A) expenses were $3.0 million for the three months ended December 31,
2013, compared with $1.6 million for the 2012 period. The increase is
primarily attributable to higher legal, accounting, and consulting fees
related to preparations for the Company's IPO.

Cash used in operations was $13.9 million for the three months ended December
31, 2013. As of December 31, 2013, the Company had cash and cash equivalents
of $3.9 million. In February 2014, the Company closed its IPO, resulting in
net proceeds of $102.7 million, after deducting the underwriting discount.

Full Year 2013 Financial Results

For the full 2013 year, the Company reported a net loss of $52.4 million,
capital contribution on extinguishment of previously outstanding convertible
preferred stock of $74.9 million, deemed and noncumulative dividends on Series
E convertible preferred stock of $14.1 million, and undistributed earnings
allocated to preferred stockholders of $8.1 million. When all combined, this
resulted in basic and diluted net income applicable to common stockholders of
$0.3 million and $1.0 million, respectively, or $1.17 and $1.05 per basic and
diluted share, respectively. This compares with a net loss applicable to
common stockholders of $58.3 million, or $290.5 per basic and diluted share
for the 2012 period.

Revenue for the year ended December 31, 2013 decreased by $0.1 million to $0.6
million, compared to $0.7 million for the year ended December 31, 2012. The
decrease is due to a reduction in licensing revenue, offset by one-time
milestone revenue.

Total operating expenses for the twelve months ended December 31, 2013 were
$38.8 million, compared with $43.9 million for the twelve months ended
December 31, 2012. R&D expenses for the year ended December 31, 2013 were
$27.8 million, compared to $32.7 million for the year ended December 31, 2012.
The decrease in R&D expenses in 2013 is primarily attributable to one-time
costs related to the reacquisition of technology rights described above,
offset by increased clinical research organization (CRO) costs. SG&A expenses
for the year ended December 31, 2013 were $11.0 million, compared to $11.2
million for the year ended December 31, 2012. The change was primarily
attributable to a decrease in professional fees relating to the Medicis
dispute during the year ended December 31, 2012.

Cash used in operations was $47.7 million for the twelve months ended December
31, 2013.

2014 Financial Outlook

Revance anticipates 2014 operating expenses excluding amortization,
depreciation and stock-based compensation will be in the range of $55 to $60
million. The Company expects its 2014 cash burn to be in the range of $75
million to $85 million. Cash burn in 2014 includes $7.1 million paid under the
Company's settlement agreement with Medicis and debt service of $10 to $11
million.

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this release.
The non-GAAP financial measures should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a substitute
for or superior to GAAP results. Revance is unable to reconcile non-GAAP
operating expense guidance to GAAP as the amount of future stock-based
compensation expense and depreciation and amortization costs cannot be
estimated at this time. Revance excludes stock-based compensation expense and
depreciation and amortization costs because management believes the exclusion
of these items is helpful to investors to evaluate the Company's recurring
operational performance.

Conference Call

Individuals interested in listening to the conference call today, March 26, at
1:30pm PT/4:30pm ET, may do so by dialing (855) 453-3827 for domestic callers,
or (484) 756-4301 for international callers, or from the webcast link in the
investor relations section of the Company's website at: www.revance.com.
Participants should allow approximately 10 minutes prior to the call's start
time to visit the site and to download any streaming media software needed to
listen to the Internet webcast. The webcast will be available on the Company's
website for 30 days following the completion of the call. In addition, an
audio replay of the conference call will be available for 7 days by calling
(855) 859-2056 or (404) 537-3406; conference identification number 11200648
beginning approximately one hour after the call.

About Revance Therapeutics, Inc.

Revance is a specialty biopharmaceutical company focused on the development,
manufacturing and commercialization of novel botulinum toxin products for
multiple aesthetic and therapeutic applications. The Company is leveraging its
proprietary portfolio of botulinum toxin compounds combined with its patented
TransMTS® peptide delivery system to address unmet needs in the large and
growing aesthetic and therapeutic botulinum toxin market. Revance's
proprietary TranMTS technology enables transcutaneous delivery of botulinum
toxin A, eliminating the need for injections. The Company's lead product
candidate, RT001, is a topical formulation of botulinum toxin type A, which
has the potential to be the first commercially-available non-injectable dose
form. RT001 is being evaluated in a broad clinical program that includes
aesthetic indications such as crow's feet lines (wrinkles around the eyes) and
therapeutic indications such as hyperhidrosis (excessive sweating) and
migraine headache. Revance also has a second product candidate, RT002, a novel
injectable formulation of botulinum toxin type A designed to be more targeted
and longer lasting than currently available botulinum toxin injectable
products.

"Revance Therapeutics", TransMTS® and the Revance logo are registered
trademarks of Revance Therapeutics, Inc. All other trademarks or registered
trademarks are the property of their respective owners.

For more information, please visit: www.revance.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements
related to Revance Therapeutics' financial performance, the process and timing
of anticipated future clinical development of our product candidates,
including but limited to reporting RT002 clinical results in the first half of
2014, Phase 3 RT001 clinical results in the second half of 2014 and RT001 open
label safety study; statements about our business strategy and goals, plans
and prospects; our ability to obtain regulatory approval; potential benefits
of our product candidates and our technologies; and future financial
performance.

Forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from our expectations. These risks
and uncertainties include, but are not limited to: the outcome, cost and
timing of our product development activities and clinical trials; the
uncertain clinical development process, including the risk that clinical
trials may not have an effective design; our ability to obtain and maintain
regulatory approval of our product candidates; our ability to obtain funding
for our operations; our plans to research, develop and commercialize our
product candidates; our ability to achieve market acceptance of our product
candidates; unanticipated costs or delays in research, development and
commercialization efforts; the applicability of clinical study results to
actual outcomes; the size and growth potential of the markets for our product
candidates; our ability to successfully commercialize our product candidates
and the timing of commercialization activities; the rate and degree of market
acceptance of our product candidates; our ability to develop sales and
marketing capabilities; the accuracy of our estimates regarding expenses,
future revenues, capital requirements and needs for financing; our ability to
continue obtaining and maintaining intellectual property protection for our
product candidates; and other risks. These forward-looking statements speak
only as of the date hereof. Revance disclaims any obligation to update these
forward-looking statements.

REVANCE THERAPEUTICS, INC.
(A development stage company)
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
                                                                   
                                                                   
                                                          As of December31,
                                                          2013      2012
                                                                   
                                                                   
ASSETS
CURRENT ASSETS                                                      
Cash and cash equivalents                                 $ 3,914   $ 4,083
Restricted cash, current portion                          75        75
Prepaid expenses and other current assets                 825       1,247
                                                                   
Total current assets                                      4,814     5,405
Property and equipment, net                               14,315    6,980
Restricted cash, net of current portion                   510       585
Other non-current assets                                  3,006     453
                                                                   
TOTAL ASSETS                                              $ 22,645  $ 13,423
                                                                   
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
                                                                   
CURRENT LIABILITIES                                                 
Accounts payable                                          $ 5,526   $ 1,805
Accruals and other current liabilities                    4,156     6,001
Deferred revenue, current portion                         83        —
Derivative liabilities associated with convertible notes,  4,890     1,800
current portion
Derivative liabilities associated with Medicis settlement, 6,684     12,880
current portion
Capital leases, current portion                           5         940
Convertible notes, current portion                        12,157    86,985
Notes payable, current portion                            10,702    7,524
Common stock warrant liability                            3,358     —
                                                                   
Total current liabilities                                 47,561    117,935
Convertible preferred stock warrant liability             1,233     351
Capital lease, net of current portion                     —        5
Note payable, net of current portion and discount         2,632     10,995
Derivative liabilities associated with Medicis settlement, 1,610     2,388
net of current portion
Deferred rent                                             3,176     3,043
                                                                   
TOTAL LIABILITIES                                         56,212    134,717
                                                                   
Commitments and Contingencies                                       
Convertible preferred stock, par value $0.001 per share —
145,010,269 and 27,598,825shares authorized as of
December31, 2013 and 2012; 8,689,999 and 1,517,387 shares 123,982   95,433
issued and outstanding as of December31, 2013 and 2012
(aggregate liquidation preference of $215,264 and $189,030
as of December31, 2013 and 2012)
STOCKHOLDERS' DEFICIT                                               
Common stock, par value $0.001 per share — 224,000,000 and
42,000,000shares authorized as of December31, 2013 and   —        —
2012; 260,789 and 204,027 shares issued and outstanding as
of December31, 2013 and 2012
Additional paid-in capital                                38,331    1,599
Deficit accumulated during the development stage          (195,880) (218,326)
                                                                   
TOTAL STOCKHOLDERS' DEFICIT                               (157,549) (216,727)
                                                                   
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND         $ 22,645  $ 13,423
STOCKHOLDERS' DEFICIT


REVANCE THERAPEUTICS, INC.
(A development stage company)
Consolidated Statement of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
                                                                
                                  Quarter Ended         Year Ended
                                   December 31, 2013     December 31, 2013
                                                                
                                  2013       2012       2013       2012
                                                                
Revenue                           $ 309      $ 117      $ 617      $ 717
Cost of revenue                   —         —         —         —
                                                                
Gross profit                      309        117        617        717
Operating expenses:                                              
Research and development          6,239      16,879     27,831     32,708
Sales, general and administrative 3,003      1,615      11,011     11,195
                                                                
Total operating expenses          9,242      18,494     38,842     43,903
                                                                
Loss from operations              (8,933)    (18,377)   (38,225)   (43,186)
Interest income                   —         —        2          7
Interest expense                  (1,698)    (9,709)    (15,164)   (28,959)
Change in fair value of derivative
liabilities associated with the    860        17,198     2,660      13,860
convertible notes
Changes in fair value of
derivative liabilities associated  312        —         47         —
with Medicis settlement
Change in fair value of common     (621)      —         (621)      —
stock warrant liability
Change in fair value of
convertible preferred stock        365        8          (743)      125
warrant liability
Other income (expense), net       (364)      (21)       (404)      (106)
                                                                
Loss before income taxes          (10,079)   (10,901)   (52,448)   (58,259)
Benefit from income taxes         —         —         —         —
                                                                
Net loss                          $ (10,079) $ (10,901) $ (52,448) $ (58,259)
                                                                
Net income (loss) attributable to                                
common stockholders:
Basic                             $ (13,987) $ (10,901) $ 258      $ (58,259)
                                                                
Diluted                           $ (13,987) $ (10,901) $ 1,083    $ (58,259)
                                                                
Net income (loss) per share
attributable to common                                           
stockholders:
Basic                             $ (53.63)  $ (53.69)  $ 1.17     $ (290.48)
                                                                
Diluted                           $ (47.11)  $ (53.69)  $ 1.05     $ (290.48)
                                                                
Weighted-average number of shares
used in computing net income                           
(loss) per share attributable to
common stockholders:
Basic                             260,779    203,044    220,220    200,560
                                                                
Diluted                           296,875    203,044    1,029,150  200,560

CONTACT: Westwicke Partners
         Ana Petrovic
         (415) 513-1281
         ana.petrovic@westwicke.com
 
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