#USA #Crown Laboratories #Revance Therapeutics #DAXXIFY #Johnson City, Tennessee

Crown Laboratories and Revance Therapeutics Amended Merger Agreement

Crown Laboratories, known for its innovative contributions to the skincare sector, has announced an updated merger agreement with biotechnology firm Revance Therapeutics, which specializes in aesthetic and therapeutic solutions. This decision comes at a crucial moment in the skincare and biopharmaceutical landscape, as both companies adapt to shifting market demands.

On December 9, 2024, both companies revealed that their leadership had unanimously approved modifications to the original merger agreement established on August 11, 2024. Jeff Bedard, CEO of Crown, expressed optimism regarding the merger, stating that this union would enhance their combined portfolio and elevate the standards for patient care and consumer products in aesthetics.

Under the terms of this revised agreement, Crown will initiate a tender offer valued at $3.10 per share in cash for all outstanding shares of Revance's common stock. This strategic move aims to solidify their standing in the market, particularly as the cosmetic and therapeutic sectors continue to grow and evolve.

Context and Implications

The amend-and-restate approach stems from Revance grappling with recent challenges, including a notification from Teoxane regarding a breach of their exclusive distribution agreement. This circumstance necessitated modifications to the business strategy discussed between the two parties. The parties resolved the breach allegations and made adjustments to their distribution commitments, indicating the constant pressure to innovate and remain competitive in the fast-paced skincare market.

Additionally, this merger aligns well with Revance's changing commercial performance relative to its previously issued 2024 financial forecasts. With uncertainties regarding its standalone prospects, joining forces with Crown emerges as a strategic solution to improve financial stability and product offerings.

Looking Ahead

The completion of this transaction is expected in the first quarter of 2025, subject to stockholder approval and customary closing conditions. Once finalized, Crown will fully acquire Revance, which will subsequently cease trading on the Nasdaq. This merger is not only a landmark development for both companies but also promises to reshape the future landscape of skincare and therapeutic innovations.

Revance’s Board of Directors has voiced unanimous support for the tender offer, encouraging stockholders to participate actively. This strategic approach is crucial for ensuring a smooth transition and maximizing shareholder value.

About the Companies

Crown Laboratories is celebrated for its commitment to producing premium aesthetic and therapeutic skincare products aimed at improving quality of life through effective skin health solutions. Its portfolio includes a range of well-known brands and products distributed across more than 50 countries.

Conversely, Revance is recognized as a frontrunner in biotechnological advancements, particularly for its aesthetic products like DAXXIFY and the RHA Collection of dermal fillers—both of which are progressing towards setting new benchmarks in skincare treatments. Together, these companies are poised to leverage their strengths, forging a potent entity that seeks to redefine skincare and therapeutic excellence across global markets.

This merger is not just a corporate strategy but also an opportunity to innovate and expand the horizons of skincare solutions, promising enhanced patient outcomes and superior consumer experiences in the years to come.