The FDA declined to approve Revance Therapeutics' facial treatment
Revance Therapeutics Inc (NASDAQ:RVNC) is plummeting today, last seen down 41.9% to trade at $13.21. This plunge came after news that the U.S. Food and Drug Administration (FDA) declined to approve Revance's facial line treatment, which was seen as a possible Botox competitor, due to issues with the company's manufacturing facility.
The stock's typically quiet options pits are bustling with activity this morning. Options volume is running at 12 times what is typically seen at this point, with 2,813 calls and 922 puts across the tape so far. The November 15 call is most popular, followed by the 12.50 put in the same monthly series, with new positions currently being opened at both.
Due to today's volatile swing, RVNC has landed on the Short Sale Restricted (SSR) list. Short interest has been on the rise, and makes up 5.3% of the stock's available float, or nearly two weeks' worth of pent-up buying power.
Analysts are already chiming in with bear notes. The security has received four price-target cuts, including one from Wainwright to $18 from $26. The brokerage bunch was optimistic toward Revance Therapeutics stock, with all nine analysts in coverage calling it a "buy" or better. Plus, the 12-month consensus price target of $33.78 is a whopping 154.9% premium to current levels, indicating RVNC could see additional price-target cuts and/or downgrades.
On the charts, Revance Therapeutics stock earlier hit a fresh annual low of $13.01. The shares have also breached a recent floor at the $22 level, and are now off 53.5% year-to-date.