Evolus (EOLS) is capturing the aesthetic neurotoxins market with its new product, Jeuveau. Building on its reputation, the company is set to tap into the lucrative dermal fillers market through strategic partnerships with Evolysse and Estyme. This venture, coupled with robust revenue growth and an imminent turn to profitability, makes Evolus an interesting prospect for potential investors looking to capitalize on the growing aesthetics market.
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Evolus Targets Expansive Revenue Growth
Evolus is a performance beauty company with a flagship product, Jeuveau, a neurotoxin treatment for aesthetic use. Its individuality lies in the company’s business model, a newly digital platform, and strategic targeting of the cash-pay aesthetic-only market.
The company aims to capture the rapidly expanding $19 billion global aesthetics market, especially the largest and fastest-growing segments of aesthetic neurotoxins and dermal fillers. It recently entered an exclusive agreement to distribute Evolysse, a range of unique dermal fillers currently under late-stage development, in the U.S. and Estyme in Europe.
Evolus has submitted the final portion of its premarket approval (PMA) application to the U.S. Food and Drug Administration (FDA) for its new dermal filler products: Evolysse Lift and Evolysse Smooth, both targeting nasolabial folds (NLFs). Upon successful review, the FDA is expected to approve these products in the second half of 2025. A recent U.S. pivotal study confirmed the effectiveness and safety of these products, endorsing both as superior to Restylane-L at six months.
The estimated market size Jeuveau is projected to expand from $3.5 billion to $6 billion in 2028. With the launch of a dermal filler product, the estimated market opportunity is anticipated to grow by another $4 billion by 2028. Given the expansion of the total addressable market, management has targeted revenue growth to $700 million in 2028, up from about $200 million last year.
Evolus’ Recent Financial Results & Outlook
Evolus recently reported its results for the first quarter of 2024. Revenue of $59.33 million beat analysts’ expectations of $57.32 million while marking a 42% increase from the same period in 2023. Increased sales of Jeuveau primarily fueled this growth. The company also recorded a loss from operations totaling $8.9 million. However, the non-GAAP loss from operations stood at just $0.9 million, indicating significant progress toward profitability. Earnings per share (EPS) stood at -$0.08, surpassing the analysts’ expectations of -$0.15.
Management has given guidance for 2024, expecting total net revenues from $255 million to $265 million, with the higher end representing 31% year-over-year growth. The company also expects an adjusted gross profit margin between 68% and 71%. Non-GAAP operating expenses are estimated to be between $185 million and $190 million. Furthermore, the company plans to expand into more markets, notably Australia and Spain, and it predicts substantial growth from the expected launch of its new products.
What Is the Price Target for EOLS Stock?
The stock has been on an upward trend, climbing over 65% in the past year. It trades in the upper half of the 52-week price range of $7.11 – $15.43 and shows positive price momentum by trading above the 20-day (11.53) and 50-day (11.78) moving averages. Likely reflecting the upside growth potential, the shares trade at a relative premium, with a P/S ratio of 3.13x vs. the Specialty & Generic Drug Manufactures industry average of 2.23x.
Analysts following the company have been bullish on the stock. For instance, Leerink Partners analyst Marc Goodman has recently reiterated a Buy rating, noting the aesthetic market’s robust annual growth and Jeuveau’s solid performance, particularly among newer generations of users, as well as the recent clinical success of the Evolysse Lift and Smooth products.
Evolus is rated a Strong Buy overall, based on five analysts’ recommendations and price targets issued. The average price target for EOLS stock is $21.67, representing a potential upside of 81.19% from current levels.
Final Thoughts on EOLS
Evolus is well-positioned to capture a significant share of the rapidly expanding $19 billion global aesthetics market. The company is poised for expansive revenue growth with its flagship product and the potential approval and subsequent launch of its new dermal filler products. EOLS is a promising candidate for investors looking for solid growth opportunities in this industry.
