All right, I think we're at time, so we should get going. Thank you for joining us. For those who I've not met, I'm Tim Lugo, the head of biotech and pharma research here at William Blair. It's my pleasure to welcome Toby Schilke, CFO, Revance Therapeutics, a leading company in the aesthetics and soon-to-be therapeutic space. It's my pleasure to welcome Toby to our conference. I believe this is the first time you might be presenting. I think Mark has presented in the past, so it's great to have you. We're gonna have a very conversational presentation, so, you know, even if you would like to ask questions from the audience, feel free. I do have a list of questions, though, but I do also—I should note that our compliance officer would probably have a heart attack if I didn't mention, go to williamblair.com to check for any disclosures, related to our two firms. And with that, it's my pleasure to welcome Toby, who maybe you could just start with a bit of an overview for the generalists in the audience of what is Revance and what does Revance do? Terrific. Thank you for coming to our conference. Thanks for having us. Thanks for all the coverage over the years, Tim, and just appreciate the advice that the platform has given, and so it's great to be here. Revance is anchored by our key lead asset, DAXXIFY, which is proven to be in many clinical studies to be a longer-lasting botulinum toxin. Botulinum toxins is used in two major fields for therapeutic and aesthetic indications. Most people well know of the BOTOX market, and in the U.S., that TAM, total addressable market, is about $2.5 billion and has historically grown high single digits, low double digits over the last several decades. Also, DAXXIFY is now approved and competes in the therapeutics market, which is surprisingly about the same size as the aesthetics market, so it's another about $2.5 billion in the U.S. There's an additional $2.5 billion of botulinum toxin sold outside of the U.S., mainly in aesthetics indications. We also have a line of hyaluronic acid fillers, which are sort of the peanut butter and jelly of facial injectable medicine for practices. Those have been on the market since the pandemic in 2020, and last year did over $128 million of revenue. Typically, in the facial injectable markets, toxins or botulinum toxins are treated for wrinkles in motion, usually the upper third of your face, and for wrinkles at rest, usually the lower two-thirds of your face are treated by hyaluronic acid injections. Hyaluronic acid in the U.S. is about a $1.5 billion market and has historically grown in the low single digits. The last couple of years, the market has flatlined, probably because of some sort of macroeconomic effect related to the pandemic, and we're starting to see that bottom out and return back to growth. Maybe we can talk a bit about your most recent quarter, and just what's the state of the DAXXIFY launch as we sit here today? That's terrific, and maybe we take a step back and to go forward- Sure. If you don't mind. So, we launched, DAXXIFY was approved in September of 2022, and we had a gradual rollout that we called the preview program, if you remember, Tim. And, in that process, we used about 400 clinicians to practice DAXXIFY and to make sure that what we were seeing in the clinical trials resonated in medical practice. So that went on from September until the end of March, basically, with these practices. And during that time, DAXXIFY did really, really well, commercially and exceeded our expectation as these preview doctors started ordering commercial product. As we got further and penetrated the market more in a deep fashion in the May, June, July timeframe, what we saw is the value proposition that was being realized by clinicians and their patients in terms of what our price was for DAXXIFY wasn't matching their expectations in the real world. So we made a strategic pivot in September, and we reduced the price of DAXXIFY on September first of last year, 2023, by about 20% to be in line with other competitor toxins at that point in time. And in that... in doing so, we went back to practices, and over the past two quarters have been relaunching DAXXIFY. Talking about DAXXIFY is a product that not only lasts longer but has a better onset of action and has improved skin quality attributes. So that relaunch phase has been going on since Q3, Q4, and into Q1, and now we're sort of regrowing from that base of our aesthetic accounts. So in Q1, we were pleased to see that the volume of DAXXIFY grew significantly year-over-year, and then also sequentially quarter-over-quarter. So we're starting to see DAXXIFY returning to growth. And one other thing to note is that Q1 is typically the weakest quarter on a calendar year for the aesthetic market. Usually, there's a large consumer seasonality that happens ahead of the Christmas end-of-year holiday season, and then also there's a pickup then in the springtime ahead of graduations, wedding season, and things like that. So you'll see these spring and Q2 and Q4 are typically high quarters. Q3 and Q1 are a little bit slower, and Q3 is usually diminished because of vacation patterns. It sounds like, you know, the normal seasonality is kind of holding true, even despite kind of the relaunch. Is that fair enough to say? That's fair to say, yeah. Okay. And the current state of the new pricing strategy, is it anecdotally, how is it sitting with the market? Yeah, so what you see here, and, you know, again, just to reorient folks, this is a B2B2C sell. So Revance sells our products to plastic surgeons, dermatologists, med spas, and they in turn sell their services and the injection to their consumer, their end consumer. So, what we're seeing from Guidepoint data, which is also known as Qsight, which is sort of the industry-leading practice to determine end consumer prices, is we're starting to see DAXXIFY price to the end consumer come in line with the competition. Now, there's mixed practices out there. Some practices we're still trying to adjust to bring them down, that their end consumer price is closer to the competitive toxin price. But for the... By and large, what we're seeing from that, Qsight data is coming in line with our competitors. The growth that you've been seeing over the past two quarters since the new pricing has been announced, is this coming from new to kind of brand physicians, or is this kind of a deeper penetration into the original cohort of physicians? Yeah. So, what we saw was a growth of our market share from Q4 to Q1 of 3%-3.8% of the toxin marketplace. And what we've also said publicly is that about two-thirds of that was from recurring accounts. So, and we added about 500 DAXXIFY accounts on the quarter. So we feel pretty good about that, when we're establishing DAXXIFY in a practice, it's tending to be sticky, and there's less churn, and we're starting to add accounts as well. Mm-hmm. And I guess before we talk a little bit about therapeutics, there is some competition coming in the aesthetics market. You know, we've had... I think another Korean toxin's been approved recently. There might be a longer-acting product coming to the market as well from an established competitor. Can you just describe what... You know, you're still very much in the growth phase- Yeah. but you do have some competition coming. Can you kind of weigh those two? Yeah. Well, let's, let's kind of break it all down. So, generally speaking, there are five approved competitors right now that are on the marketplace. The, the first one is BOTOX. That has the largest market share, and it's about 60% market share, there or thereabouts. The second competitor is Dysport by Galderma, which is about there or thereabouts, about 20% market share. And then you've got about 10-ish market share, or a little sub-10-ish market share, to Xeomin, which is sold by Merz, and Jeuveau, which is sold by Evolus. And so DAXXIFY was the fifth product to market, and as we said, in Q1, we achieved about 3.8% market share and growing. There is a competitor, another, toxin that was approved, Letybo, by Hugel, as Tim pointed out. That has not been introduced commercially to the U.S. at this point in time, and there's not a commercial infrastructure that's been fielded to launch Letybo. What we're seeing is this is a relatively mature market, and Revance is taking a classical market segmentation approach to this and trying to find a position for DAXXIFY that's not solely dependent on pricing and discounts, where we're trying to let the clinical profile of our toxin stand out compared to all of the other competitors. And so that's our differentiated process to garner market share and to do that in a way that benefits our businesses who buy our practice so that they can achieve better profits by using DAXXIFY, which encourages them to grow their market share of DAXXIFY. The second competitor that's potentially going to be approved is from Galderma. It's a product known as QM1114. That's a prefilled syringe of toxin. So basically, all of the other toxin products come in a vial that has to be reconstituted at the practice on a daily basis. The practice draws up small insulin-like syringes and injects those. This is a little bit different because it comes in a prefilled syringe. What we've seen over multiple decades of medical practice in that is that doctors have different patterns of reconstituting their toxin, depending on the look that they're trying to achieve and sort of the local look that's considered appropriate in their given local geographies. So it'll be interesting to see how a prefilled syringe, which won't have that ability to do the dilution parameters, work. And also be interesting to see the data on injection site pain, which has been managed by various buffers and saline solutions that practices put in when they draw up their toxin over time. And so they've learned to kind of compensate for the short-term injection pain with different sorts of dilution criteria. So it'll be interesting to see that when that's approved, and that's, that's by Galderma. This is probably something interesting for the audience. It's not a very typical pharma biotech market. These aesthetic physicians and practicing physicians do like a lot of flexibility in their injection site patterns, or not just injection site patterns, but just flexibility in achieving the look on a per-patient kind of level. Yep. Yeah. You'll find that there's even different geographic looks. For instance- Mm-hmm You'll find in the Northeast there's more of a little bit more natural looks and a less frozen look, and in the South, people want more effective toxin, and you'll see a more frozen look. Mm-hmm. And all that flexibility is hindered when you have a pre-filled syringe, so that's kind of the importance of that. So we also have, obviously, BOTOX is the brand leader. Yep. You know, AbbVie has been discussing inventory levels in Q1. Can you talk. And also, kind of increased promotional activities. Can you maybe speak a bit to, you know, what the leader is doing into the market? And, you know, you're still at a sub-5% penetration- Yep You know, how you are kind of gaining share. Yeah. So, we feel pretty good about, like you said, that we're not just selling into the practice and the practices stocking and keeping our vials of DAXXIFY, and not injecting them. We feel with the lower price and lowering that acquisition cost, that they're actually pulling it through. And one thing that we did an experiment on, that we talked about in Q1, is we ran a consumer coupon program, and it was a little bit different, Tim, than the traditional ones, where a practice had to buy for one month, the month of February, over a set quantity of DAXXIFY vials in a given order. And they were given a set of QR codes that had an expiration date. Those QR codes could only be used in the month of February, March, and April. Mm. And so we could monitor the activity and make sure that a fair amount of those those QR codes were being used, which, to us, means that the the practice is actually injecting DAXXIFY at that point in time. And so we saw a really good utilization of those QR codes. And so that means that feeling like folks aren't leaving DAXXIFY on inventory, even when they're buying large quantities of DAXXIFY. That's interesting. In some of the reordering patterns, can you discuss, you know, how the strength of those areas, and have you seen any kind of geographic footholds that have really embraced DAXXIFY? You know, I think it's, there are certain geographies that we think are ahead or behind what we envision for DAXXIFY, but it really comes down to an account-by-account basis. And there are certain areas, if you take a, you know, again, a big step back, there's roughly 30,000-40,000 accounts or injectors in the U.S. for aesthetic medicine. And right now, we said that we're in about 7,500 accounts for all of our aesthetic products, RHA and DAXXIFY, and we're in, you know, over 2,500 DAXXIFY accounts, too. So, what we're seeing then is we've got a foothold, we've got a large area to continue to expand, to build account volume, and to establish DAXXIFY in those accounts over time. You'll see that it's correlated by making sure that you have really good sales presence in those given geographies, and that correlates quite well as well. I've heard from kind of some of the channel checks I've done with larger users of DAXXIFY, there is this at least feeling that the skin quality benefits are different with DAXXIFY than some of the other neurotoxins. Can you just speak to kind of the feedback you're hearing from the field, as well as, how, how does this kind of gain traction in the marketplace? Yeah. So I think that that, right now, we're generating data both from an animal and a human study perspective that will be through a publication plan and strategy, we'll compliantly disseminate that over time. What the data that we're seeing about improved skin quality, we believe it comes from the differentiated formulation of DAXXIFY, and that it's combined with a peptide, and that's what people are seeing and saying. And so typically, whenever you're giving a toxin, you'll see that when you relax the wrinkles, your natural pore structure will improve, and the luminosity of your skin will improve, no matter what kind of toxin. They're seeing an improved effect with DAXXIFY. And perhaps it's related to the peptide that we're using, and perhaps it's related to the faster onset and sort of the longer duration that you're seeing that benefit of improved skin quality. Well, with the aggressive lighting up here, I feel like the luminosity of our skin is- The skin is really shining. It's really shining through. Yeah, exactly. Yep. Maybe for the next few minutes, I'd love to pivot into talking about the therapeutic space. There was a lot of controversy in the aesthetic space around the launch. Do physicians really want to see their patients less, you know, six months versus three months? It doesn't. I mean, in the therapeutic space, I think everyone can widely agree, longer is better, for duration. Could you talk about how you're launching in the therapeutic space, especially in cervical dystonia, where is the first label? Yep. So DAXXIFY is approved in cervical dystonia. Of the, call it, $2.5 billion TAM of therapeutics in the U.S., cervical dystonia, most folks agree, is around $300 million-$400 million of that $2.5 billion TAM. Call it about $350 million. The product has a really interesting profile there, and what we're trying to do with the duration of DAXXIFY is avoid a rollercoaster ride of what patients experience with, other approved toxins that are on the marketplace. There's interesting literature published by Comella et al., that describes patients that have sort of an onset of action that takes a few weeks for the toxin to kick in, to shut down some of the muscles in the shoulder and the base of the spine and the neck. And so they're still feeling the pain and discomfort and the disability associated with cervical dystonia for a few weeks. Then, what they're seeing is the typical toxin wears off, over thousands of patients have realized it wears off after 8-10 weeks. However, they're stuck in a quandary because you can't reinject a toxin until 12 weeks. That's a label on every toxin, and it's also controlled by payers. So you're stuck with these sort of rollercoaster of effect, where folks have to plan their life around, "These are the days I can work. These are the days I can drive. These are the days that I cannot." And what we're trying to do is modulate that with DAXXIFY, have it kick in, and then have the patients come back, even if they're experiencing not a return to baseline, but a treatment with DAXXIFY at that 12-16 weeks so that they never return to baseline. And so what we've shown in, you know, in sort of our published data on, you know, cervical dystonia, and then also what we're experiencing through, 30 clinical sites, is that the doctors are managing that first dose of DAXXIFY, and then the second dose of DAXXIFY, so that there's no return to baseline, and they have more better days. It's also a huge value, perspective from a payer because there's less disability. A lot of cervical dystonia patients have to go on disability during those times where their toxin has worn off, and so they're unable to work, unable to drive, unable to do activities of daily living. So we're really proud to introduce this product right now. It's gotten great traction from payers. We've achieved our stated corporate goal of having payer coverage at this point in time. So we feel confident and ready to introduce that into the marketplace, which we've done in May. It's a smaller physician footprint, however- That's right. Right? I- Very different than aesthetics. Very different than aesthetics. I think you have 7,500 aesthetic accounts, 3,500 of those are DAXXIFY. Can you talk about what is the footprint in cervical dystonia, and, you know, the kind of- how many treating physicians are there, and how are you attacking that market? So these are neurologists and injecting physiatrists. So very different than dermatologists, plastic surgeons, and med spas, completely different channel. We believe that less than 1,000 of those injectors on this space treat muscle movement disorders broadly, cervical dystonia, upper limb spasticity, lower limb spasticity. And so less than 1,000 are doing about 80% of the volume for muscle movement disorders. And with that, we feel that our field team that we've assembled, of about 20 folks, targeting these areas, from a payer, from a medical affairs perspective, and a on-label sales rep, are able to target that effectively. You mentioned that upon launch, you already had a permanent J-code. That's correct. You've already secured coverage for about 78% commercial lives. That sounds like you should be able to hit the ground running in CD. When do we kind of start to see that flow through the results in, you know- Yeah ...... Q3, Q4? Is that kind of the time frame? That's right. And we've guided a modest uptake because what you see is that when you start to establish DAXXIFY in a given account, usually that account is working with a set number of local payers that they have to go through. Mm-hmm. And so you have to uncover those payers from both the account level to get DAXXIFY onto their formulary, and then to allow them to switch over their patients. You're not going to introduce new patients to cervical dystonia. People who have cervical dystonia are diagnosed, so you're about switching an existing toxin patient to DAXXIFY. Usually, that's 90 days to a quarter because you're going to, the patient's gonna come in. They'll probably be injected with their existing toxin. The doctor will have a conversation about switching them so that the next injection cycle, they can get the benefits of DAXXIFY. And you'll probably have, you'll probably have sort of your first patients be sort of the more resistant patients or your more difficult patients that they're seeing, and so they'll probably start there. They'll start titrating at lower doses and move up that titration curve because they wanna make sure patient safety is also paramount when dealing with toxins. So that's why we guided a modest contribution in 2024, but feel like we'll continue to garner market share and use through the next couple of years. Given guidance, you've mentioned $280 million. Can you talk a bit about the split among DAXXIFY versus the filler line, and then also, how much therapeutic is in that DAXXIFY line? It- Yes. You mentioned modest. Yeah. So let's maybe deconstruct it a little bit and start with the fillers. Last year, we did over $128 million of revenue from our line of HA fillers. We're aiming to grow that by double digits this year. We're launching this quarter our filler, our RHA 3 in lips. We believe that the market for HA fillers has sort of bottomed out and will start to return to historical growth. So we feel like that will make up more than 50% of that $280 million contribution. So that's, call it around $150 million. That $280 million is what most folks have out there for the filler line. Also feel that, analysts, right now have our DAXXIFY for therapeutics in sub-$10 million, given sort of the later launch in the, in the time frame for the calendar year, and then also sort of those payer hurdles that we're knocking down on an account-by-account basis. So that leaves, you know, call it about $120 million-$130 million of DAXXIFY for aesthetics. If you recall, Tim, we sold over $80 million of DAXXIFY last year in aesthetics. It's a significant growth step up, but we're introducing a new toxin, and we're also having to lap about a 20% price increase. So if you take those two factors, we think that you're going to have to grow your volumes about 80%-90% of DAXXIFY on a unit-by-unit basis on year-on-year. We were pleased to see in Q1 that we grew nearly 100% of DAXXIFY units compared to Q1 of last year. Again, we'll require continued growth of DAXXIFY, but it's a great product, and our RHA line continues to resonate and garner market share as well. And again, Q1 is seasonally a weak, you know, quarter for the aesthetic sector, so it's still impressive to see that growth, sequentially and yearly. So maybe the last question, since, you know, you are the CFO, can you talk about your cash position? And, you know, I know you've had some debt kind of reshuffling recently. So can you just speak broadly about your balance sheet? Yeah, thanks. So, we closed Q1 with over $277 million of cash. We did a raise in early Q1 of $100 million. Right now, we feel like with the trajectory that DAXXIFY and RHA are on, we're going to be in a position to be EBITDA positive in 2025, and that's our guidance. So then, what we have is we have $150 million of term debt with Athyrium that's senior secured. It's due in September of 2026, and then we have a $287 million convert that's due in Q1 of 2027. Feel like most companies have a certain level of debt, and we feel like we're in a good position to maintain our commitment to Athyrium and pay that when it's due. And we have optionality. If we can choose to extend the Athyrium debt, if we refinance the convertible debt first. So we're sort of balancing the equity-linked convert versus the straight term debt that's at a fixed coupon of 8.5%. And so that's what we're thinking through these days, and it really depends on sort of the trajectory of the business and the interest rates on a go-forward basis. Understood. Well, with that, thank you so much for joining us, and the breakout, if you have some additional questions, is upstairs at Cheney A, room Cheney A. Thank you for joining us, Toby. Thanks, Tim.