The main draw for Revance Therapeutics (RVNC) is that it has the next generation Botox — a neuromodulator which is marketed as Daxxify, explains Mike Cintolo, editor of Cabot Top Ten Trader.

It’s a proprietary stabilizing peptide that is injected for the same aesthetic reasons as Botox — to temporarily remove wrinkles — and which has a promising extension into therapeutics for people with muscular dystrophy.

The treatment gained FDA approval in September for treatment of glabellar lines, the frown lines that appear between peoples’ eyebrows. That comes on top of FDA approval for lip lines.

Revance says Daxxify is a better version of Botox — which is a product from AbbVie (ABBV) — because injections last up to 24 weeks, compared to as little as 12 to 16 weeks for Botox. The appeal is that consumers want fewer injections that last longer and presumably are willing to pay more for the product.

Revance’s aesthetics division saw worldwide sales of $28.4 million in the second quarter, up 51% thanks primarily to Daxxify and a Botox biosimilar it produces with Viatris (VTRS) that sells in most places around the world. The aesthetics market is large: Botox itself sells $4.7 billion in cosmetic applications globally.

Revance believes Daxxify will expand the market to interested consumers who are put off by Botox’ frequency. The company also has a payments system, Opul, it pitches to beauty practices to replace traditional bank payments; Revance’s system charges about 0.5% to 1% of a transaction as fees, compared to up to 3.5% for existing networks.

Still in clinical trials is applying Daxxify to treat muscle spasticity and cervical dystonia, together a $1.2 billion global market opportunity. The bottom line is still in the red, but sales are expected to rise 51% this year, with top-line growth accelerating to 85% in 2023.

Technically, September’s FDA approval — which came with extensive reviews of Revance’s operations — unwound a year-long bear market for RVNC sparked by earlier regulator concerns. The stock actually began rallying before that, with volume increasing in a big way after the FDA approval. It’s a volatile name, so if you want to take a swing at it, aim for further weakness.

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