Revance Therapeutics (RVNC) has now completed its previously announced acquisition of Hint, Inc, doing business as HindMD, a cloud-based payments platform for the aesthetics industry.
Revance issued a total of 8,572,213 shares of common stock to the equity holders of HintMD in the merger, including 683,200 shares to be held in escrow and options to purchase 801,600 shares issued upon conversion of the assumed HintMD options.
“The acquisition of HintMD augments Revance’s strong aesthetics product offering, enabling us to transform both the practice and patient experience with an innovative fintech platform,” said Mark Foley, CEO of Revance.
“This transaction leverages our existing and planned commercial infrastructure and, we believe along with our suite of facial injectables, grows our U.S. aesthetics market opportunity to more than $2.6 billion” he added.
Indeed, Revance states that HintMD provides access to an estimated $500-plus million market opportunity in U.S. aesthetic practice payment services thanks to its unique, integrated digital services platform.
Shares in Revance have surged 45% year-to-date, and analysts have a bullish Strong Buy consensus on the stock with four back-to-back buy ratings. Meanwhile the average analyst price target stands at $33, indicating 39% upside potential from current levels. (See Revance stock analysis on TipRanks)
The HintMD acquisition fills gaps in Revance’s offerings, cheered HC Wainwright analyst Douglas Tsao. He has a buy rating on the stock with a $27 price target (15% upside potential). “Management noticed that there was a demand among practices for tools to manage loyalty programs and other aspects of the practice using a single integrated system” he explained on July 10.
However he cautioned that “while HintMD does appear to offer upsides, the platform is still relatively unproven being only installed in 175 of the 33,000 US aesthetics practices. Management added that it though it is open to future business development, particularly in the therapeutic segment, the company’s focus now is on execution.”
Plus Tsao added: “We doubt AbbVie (ABBV) is interested in entering the payments market, but, given its market power, whether Allergan aligns itself with another payments company could affect physicians’ willingness to embrace the HintMD platform.”