What happened

Shares of Revance Therapeutics (NASDAQ:RVNC) are under pressure after management announced the pricing of a secondary offering. Investors dismayed by the pricing of the offering have hammered the biotech stock 16.4% lower as of 12:07 p.m. EST on Wednesday.

So what

Revance shares had been climbing since the company submitted an application to the FDA for DAXI late last month. On Monday, shares of Revance peaked above $20 per share and stayed there through the end of Tuesday's session, which is why investors were surprised at the $17 per share offering price announced today.

Person looking at a downward-sloping chart arrow crashing through the floor.

Image source: Getty Images.

DAXI is a longer-lasting version of the world's favorite neurotoxin, Botox, and Revance has evidence to prove it works better. That means Revance could end up competing with AbbVie (NYSE:ABBV) for a slice of Botox sales, which have risen to around $2.7 billion annually.

Now what

Within a couple of months, we'll know if the FDA will begin a review of DAXI that will probably last 10 months. Revance's collaboration partner, Mylan (NASDAQ:MYL), passed on the chance to fund late-stage development of DAXI in August and has until April 30, 2020, to change its mind.

If Mylan agrees to launch DAXI and give Revance a mid-double-digit royalty percentage on future sales, it could get much harder for AbbVie's acquisition of Allergan to deliver a positive return.