The company (Nasdaq: EOLS) on May 12 reported first-quarter net revenue of $12.2 million, up 16% compared to a year ago.
Most of its revenue came from the second half of the quarter, as restrictions related to a long-running ITC case were lifted.
Evolus and its South Korean partner Daewoong Pharmaceuticals in February reached ITC settlement agreements with Irvine-based competitor Allergan Aesthetics and its partner Medytox, agreeing to pay the two parties $35 million in multiple payments over two years in addition to certain royalties on the sale of its wrinkle-smoothening product Jeuveau, among other terms.
Evolus and Daewoong had been facing a 21-month import ban for the U.S. after Irvine-based Allergan Aesthetics and Medytox won a U.S. trade ruling in December.
Jeuveau is marketed to millennials as a fresh and modern-made toxin, which competes with Allergan Aesthetics’ best-known product, Botox. Allergan and Medytox had alleged Jeuveau was developed using their propriety manufacturing process.
Evolus launched Jeuveau with the #Newtox hashtag in May 2019. It was the first new cosmetic toxin to hit the U.S. market in over 10 years.
Jeuveau starts around $610 per vial. Top-tier customers with the highest-volume orders receive the largest discount for $355 per vial.
In addition to resolving the trade dispute, the company restructured its balance sheet through the elimination of $127.4 million in debt and recapitalized its business by raising $92.1 million in an upsized public offering of its common stock.
The company is now valued at about $490 million.
$100M Run Rate
“We believe Jeuveau is on track to achieve an annualized net revenue run rate of $100 million in the second quarter of 2021,” Chief Executive David Moatazedi told analysts, citing the company’s reliance on its technology platform to drive sales and market penetration as a competitive edge.
Moatazedi also pointed to the toxin market “as the most resilient category in aesthetics because the procedure is part of the consumers’ routine” as an advantage.
While shares of Evolus have dropped almost in half since its mid-March high of $16.50 to as low as $8.42, they recuperated somewhat after the first quarter results to $9 as of last week.
The company went public in early 2018, at $12 a share.
“It was encouraging to see the [first-quarter] results and also hear that the company has been adding to its sales organization where needed,” Mizuho analyst Vamil Divan said in a note to investors.
The company had made cuts in personnel last year, amid the Allergan litigation and pandemic-related declines in business. It now employs about 135 people.
“We believe Evolus is now well positioned to take advantage of a still-underpenetrated aesthetics market, especially given their focus on the millennial population,” Divan said.
Evolus has an analyst consensus of Moderate Buy with a price target consensus of $16.
Analysts on average expect $24.8 million in second-quarter net revenue and $102.6 million in full-year net revenue.
Market on Upswing
Allergan Aesthetics, whose parent company was acquired by Chicago’s AbbVie Inc. last May, reported Botox Cosmetic full-year 2020 sales of $1.1 billion.
AbbVie executives noted its aesthetics unit experienced rapid recovery after the onset of the pandemic, and said Botox Cosmetic sales are projected to jump to $1.8 billion in 2021.
Carrie Strom leads the worldwide aesthetics unit of AbbVie, based in Irvine. Strom previously worked for Moatazedi, who spent 13 years at Allergan before assuming his role with Evolus.
