Revance acquired for $924 million! Shanghai Fosun Pharmaceutical (600196.SH) commercializing its star botulinum toxin product exclusively in China.

Recently, a nearly $1 billion acquisition has attracted global attention in the medical beauty industry. On August 13th, Crown Laboratories announced that it will acquire the star company Revance Therapeutics, Inc. (RVNC.US) for $924 million in cash, at a price of $6.66 per share, a premium of 89% over the closing price on August 9, 2024, and a premium of 111% over the 60-day VWAP. As an emerging biotechnology company, Revance has attracted widespread attention in the industry with its innovative long-acting botulinum toxin product DAXXIFY entering the market. In China, Shanghai Fosun Pharmaceutical (600196.SH; 02196) had already reached a cooperation agreement with Revance as early as 2018, becoming the exclusive commercialization partner in China. In December 2018, a subsidiary of Shanghai Fosun Pharmaceutical reached a cooperation license agreement with Revance, obtaining the exclusive rights to use, import, sell, and other commercialization (excluding manufacturing) rights of RT002 (DAXXIFY, Daxibotulinumtoxin A type A botulinum toxin) in Mainland China, Hong Kong, and Macau. In April 2023, the drug registration application for RT002 for the temporary improvement of moderate to severe frown lines caused by activity of the corrugator supercilii and/or procerus muscles was accepted for review by the National Medical Products Administration, marking an important step forward in its market entry. It is understood that the indication is expected to be approved for market listing in the third quarter of this year. Observers believe that this acquisition will not only help Crown Laboratories become a leader in dermatology and aesthetics, but also bring broader prospects for the commercialization of its Chinese partner Shanghai Fosun Pharmaceutical. The main target of this acquisition, the long-acting botulinum toxin product DAXXIFY, has already gained international recognition for its innovation and effectiveness, and is expected to become a strong competitor in the field upon its launch in the domestic market. In terms of commercialization, the full-year sales of DAXXIFY in 2023 were $84.01 million, equivalent to 600 million RMB. Looking at the financial data for the fourth quarter of 2023, DAXXIFY saw a 22% growth quarter-over-quarter, with sales of $58.5 million; data shows a high rate of repeat purchases for DAXXIFY, with about three-quarters of revenue in the fourth quarter coming from repeat orders. This indicates that it has won consumer favor in terms of effectiveness, price, and user experience, as well as indicating its potential to become a market leader. Shanghai Fosun Pharmaceutical, as a leading pharmaceutical and health industry group in China, has achieved significant accomplishments in the field of innovative drugs over the past 30 years, while also demonstrating forward-looking layouts and innovative capabilities in the medical device field. In the medical beauty field, as early as 2013, Shanghai Fosun Pharmaceutical acquired approximately 95.2% of the shares of Israeli medical aesthetic equipment company Alma Lasers Ltd. for about $220 million, laying out a global medical device and medical beauty market. With Alma Lasers as the main body, SISRAM MED (01696.HK) was listed on the Hong Kong stock market in 2017, creating a beautiful and healthy ecosystem, providing a diversified product portfolio including energy source medical beauty equipment, injection fillers, beauty and digital dentistry, personal care, etc. In the field of neurological diseases, Shanghai Fosun Pharmaceutical's subsidiary, Fosun Medical Devices, as a globally leading diversified, ecological medical device industry operation platform, focuses on unsatisfied health needs in the field of neurological disease diagnosis and treatment under the national innovation-driven development strategy, continuously promoting high-quality development in technology innovation, clinical transformation, and industry operation, providing comprehensive solutions for precise diagnosis and treatment of major brain diseases, and is dedicated to bringing high-quality medical services to patients. Currently, Fosun Medical Devices already has globally leading innovative technologies and products such as magnetic resonant guide ultrasound focus (magnetic blade), freely movable CT, and non-liquid helium brain magnetic imaging, providing comprehensive solutions for precise diagnosis and treatment of major brain diseases.